My personal feeling is that a bank ought not charge an NSF fee based on a POS authorization. Some authorizations are for substantially more than the final transaction.
However, I see nothing wrong with imposing such a fee if the live dollar item and other transactions in the customer's account create a true overdraft. I recommend making sure that your Regulation E disclosures reflect the fact that POS transactions can result in a fee. The July 1, 2006, effective date of Reg. DD changes require that change if you haven't made it already.
First published on BankersOnline.com 1/16/06
NSF Fee for POS Transaction
First published on 01/16/2006