Overdraft and privilege pay fees (fees) should be based on a % of the amount overdrawn instead of on a flat fee. Five 1 dollar overdrafts can accrue $150 or more in fees; the same as five $1000 overdrafts.
Debiting fees should be delayed by several days. Immediate debiting of fees can deplete an account of remaining funds without customer awareness, during which time spending, and fees may continue.
Account balance should determine if an account is overdrawn, not the “available” balance. Committed funds are subtracted from account balance once a debit is authorized which defines the available balance. Fees accrue when the available balance becomes negative even though the actual account balance remains positive. Cancelled order releases on funds often take several days.