Time to Revitalize your Overdraft Payment Process
Recently the CFPB backed off guidance for overdraft payment programs and now is the time to consider revitalizing your bank’s overdraft payment services. While the regulators scared off some banks from offering a formal overdraft program, many banks and consumers have benefited from them for over 30 years.
Consumers create overdrafts…banks do not. Banks are faced with decisions each morning to either pay a customer’s non sufficient fund item or return it to the merchant. Providing a consistent method with these decisions eliminates problems and streamlines the process. Strunk’s program covers all aspects of offering a compliant overdraft privilege service to consumers and small businesses.
Beginning in 2010, debit card transactions that would overdraw an account could not be authorized at point of sale unless the consumer “opted in” and “signed-off” for this service. This was a great idea that came from the Federal Reserve. So, how do formal overdraft programs benefit consumers?
- Allows consumers to decide how they want their bank account handled when it comes to overdrafts
- Reduces returned check charges from merchants
- Allows consumers to take home the groceries or prescription drugs when otherwise their debit card transaction would be denied
- Keeps a bank from discriminating on daily pay and don’t pay decisions
- Keeps a bank for discriminating on waives and refunds
Contact Strunk at 800-728-3116 or email at info@strunkaccess.com to learn more about revitalizing your overdraft payment process at your bank.
