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NSF Fee for POS Transaction

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Question: 
Can a customer be charged a NSF fee if the bank hasn't paid (but agreed to pay) the amount of POS transaction? The money was in the account at the time of the POS but other items came through before the final request for payment was received.
Answer: 

Maybe.

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

First published on 01/16/2006

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