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In my experience it has only happened when I had multiple transactions in the same day & the ones that dropped my account to low were recorded first. Usually if

In my experience it has only happened when I had multiple transactions in the same day & the ones that dropped my account to low were recorded first. Usually if you have enough money in a different account with the bank you can just ask them what happened & most smaller banks will remove the fee.

mc32 5y ago
There used to be an urban legend that banks would process transactions to produce deficits if possible in order to assess a penalty. I'm not sure if that was true or not though. balance 100 deposit 500 check 400 would be re-arranged to: balance 100 check 400 deposit 500 So they could hit you with overdraft fees.
- chrisbolt 5y ago
  https://www.forbes.com/sites/halahtouryalai/2013/06/11/yes-banks-are-reordering-your-transactions-and-charging-overdraft-fees/ https://www.forbes.com/sites/halahtouryalai/2013/06/11/yes-b... > JPMorgan Chase says its policy is laid out in its Deposit Agreement which is available without a login. Transactions orders can vary by state. (See page 7 of the link beneath "Overdrafts".) Citi says it recently launched a program that simplifies the overview of account policies and outlines the fact that check and ACH transactions are processed in the order of smallest to largest to help minimize overdraft fees. So not quite “to produce deficits if possible”, but certainly more convoluted than it should be, which is why the CFPB got involved.
- ceejayoz 5y ago
  It wasn’t an urban legend. The CFPB banned it, but it was quite common. https://www.nytimes.com/2014/04/12/your-money/customers-can-lose-when-banks-shuffle-payments.html https://www.nytimes.com/2014/04/12/your-money/customers-can-... > The report scrutinized the practices of 44 of the largest banks based on deposits. It found that half still reorder transactions from the largest amount to the smallest amount — known as “high to low” posting — rather than processing them either from the smallest to largest amount, or in chronological order. High-to-low posting tends to result in fees being applied to several smaller amounts, rather than one fee applied to a single, larger amount. (from 2013)
- croutonwagon 5y ago
  I worked netsec for a small regional bank. They absolutely did this. Ive always been more of a credit union type of person. But working in that sector made me feel predatory and like a carpetbagger, event though I wasn’t directly interfacing with these people.. I left the banking sector after a couple years.

mc32 5y ago

There used to be an urban legend that banks would process transactions to produce deficits if possible in order to assess a penalty. I'm not sure if that was true or not though. balance 100 deposit 500 check 400 would be re-arranged to: balance 100 check 400 deposit 500 So they could hit you with overdraft fees.

chrisbolt 5y ago
https://www.forbes.com/sites/halahtouryalai/2013/06/11/yes-banks-are-reordering-your-transactions-and-charging-overdraft-fees/ https://www.forbes.com/sites/halahtouryalai/2013/06/11/yes-b... > JPMorgan Chase says its policy is laid out in its Deposit Agreement which is available without a login. Transactions orders can vary by state. (See page 7 of the link beneath "Overdrafts".) Citi says it recently launched a program that simplifies the overview of account policies and outlines the fact that check and ACH transactions are processed in the order of smallest to largest to help minimize overdraft fees. So not quite “to produce deficits if possible”, but certainly more convoluted than it should be, which is why the CFPB got involved.
ceejayoz 5y ago
It wasn’t an urban legend. The CFPB banned it, but it was quite common. https://www.nytimes.com/2014/04/12/your-money/customers-can-lose-when-banks-shuffle-payments.html https://www.nytimes.com/2014/04/12/your-money/customers-can-... > The report scrutinized the practices of 44 of the largest banks based on deposits. It found that half still reorder transactions from the largest amount to the smallest amount — known as “high to low” posting — rather than processing them either from the smallest to largest amount, or in chronological order. High-to-low posting tends to result in fees being applied to several smaller amounts, rather than one fee applied to a single, larger amount. (from 2013)
croutonwagon 5y ago
I worked netsec for a small regional bank. They absolutely did this. Ive always been more of a credit union type of person. But working in that sector made me feel predatory and like a carpetbagger, event though I wasn’t directly interfacing with these people.. I left the banking sector after a couple years.