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Banks’ Overdraft Fees

Lack of clarity in prioritization of transactions by different banks may lead to unplanned overdraft fees, Forbes says. While some banks will process transactions in consecutive order, others will prioritize transactions largest to smallest as to ensure the biggest purchases and bills are paid for. This, however, may lead to unplanned overdraft fees as smaller transactions will be processed afterwards, thus charging the customer for each transaction separately rather than charging for last overdraft processed. Overdraft fees are a big source of revenue for banks and thus the CFPB has raised the concern for overdraft practices possibly becoming unclear and too costly for the customer.

Read more: forbes article

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