How does Bank of America decide to pay or return a check presented on insufficient funds?

Question

I bank with Bank of Ameirca. In the past I have had checks posted with insufficient funds in the account. They usually pay the amount and overdraw my account as well as tack on the $35 fee. I have also in the past had them return the check charging me the $35 fee and then having to pay the store a returned check fee as well. How do they decide what to pay and what to return?

Answer 1

It depends on how much it's going to cost you in the long run, and benefit them, because they could care less about anything but your money.

Answer 2

It depends on the amount of overdraft protection and the amount of the check.   At most banks checking accounts have a specific amount of overdraft protection.   The bank will honor checks up to that amount.  Anything over it they return the check for insufficient funds.    

The overdraft protection is not per check.  It is for all checks that exceed your balance at any time.  So if one check puts you over the limit they might pay it.  But there would not be enough protection left to cover a second check.

Check of BofA and find out the terms of your checking account.  Also, if you have a savings account you can probably tie the two together and increase the amount of protection.

Answer 3

OK, i work at Bank of America.  Im the person on the other end of the phone when u call and yell about those $35 fees.  haha.  

Truth is, each account is completely different.  Depending upon the history of your account, which includes a counter on your account that shows how many OD and NSF days and fees you have had on your account in the past month, 90 days, and year, also it includes the amount you normally keep in your account.  Each account has a different limit set to it that the bank will pay off your overdraft.  So if your account has a limit of $250 and your check or debit is for $245 then you are lucky, then the bank will pay it for you as a service, and thats where the $35 fee comes in for that.  Say it was for $251, then thats when the bank kicks it back and returns the item and you owe the bank $35 plus u still owe that payee and ur also gonna owe the payee a returned item fee on top of that.

The amount the bank will pay for u constantly changes as well.  If you go for a while with a positive balance and keep your account on track and dont OD ur account and keep money in it, the amount u will have paid increases.  On the flip side, it can decrease as well.  The bank is not allowed by law to disclose the amount either.  

Most people think just cuz I work for the bank, I never overdraft.  WRONG.  I am 200 in the hole right now, thanks to B of A and the overdraft fees lol.  The thing is, I am not able to look at my own account, so not even I know what the limit is on my own account.  Crazy.  Hope this kinda helped.