Pushing for more Overdraft Fees

[Ghel]

Our bank is apparently going to try to push more customers into overdrafts so that we can get more fee income. :sigh:

When a customer applies for a debit card, one of the forms they have to sign is an opt in/out for overdrafts.

When an authorization comes through on their debit card, and the system sees they don't have enough money in their account to cover it, they have two options (which they have to choose for all transactions at the point they apply for the debit card):

1. We decline the transaction. The merchant is notified that the transaction wasn't completed, and the customer will have to pay a different way.
2. We allow the transaction to be completed. The customer's account will overdraw, and they'll be charged a $30 overdraft fee.

The customer can change their mind later, but they'll have to inform us and sign another copy of this form.

So what management is proposing is that we, the employees, encourage customers to choose option 2. Because, you know, there might be times when they want that transaction to go through. Like, say, if they don't want to be embarrassed while checking out at the grocery store. Or if they're paying for their prescriptions. Et cetera.

I don't like this at all. I'm going to keep explaining the form to customers the way I have been. Almost all customers immediately say, "I don't want an overdraft fee!" and check box one. Some even say, "the only way I'm going to overdraw is if someone steals my card!" and check box one. I don't want to do anything that's going to encourage customers to overdraw their checking accounts just so the bank can earn some fee income.

[ReverendBSB]

So when many banks are eliminating overdrafts and overdraft fees entirely your banks management wants to encourage them?

[taxguykarl]

Some companies seem bent on proving that there is such a thing as bad publicity.

[Ghel]

If we got publicity from this, it would be the only publicity we have right now. I had to argue with BM to do a tiny $25/week ad in the local shopper. And that one's basically just our logo and phone number.

[workerbee222]

Decades ago, when debit cards were becoming the norm, I asked my husband who worked at a bank what that would mean for the average consumer. He said, "Instead of getting a written notice in the mail that their check had bounced, they'll be embarrassed in public when the transaction is declined."

I've only had it happen once, I paid with a credit card instead, and went through my mail at home. There had been a breach in security somewhere, and my new card was in the mail on my desk - and had been for a couple weeks. In fact, for that transaction I had offered to write a check first, but the clerk said, "Checks bounce, debit cards don't." I was too embarrassed to ever go back to that business again, and shortly after that, stopped carrying a checkbook at all.

[Ghel]

Yeah, lots of places won't even accept checks any more. Or if they do, they process it electronically. They print a statement on the back and hand it back to the customer. Might as well use a debit card at this point.