NSF fees are typically incurred when a transaction is processed and then declined due to lack of funds through payments made via cheques, electronic authorisations or the Automated Clearing House (ACH). Data published by the Bureau in 2022 suggests that the average value of an NSF fee is $34.
However, as put forward by the CFPB in a statement this week, these fees “almost never” apply to transactions that are declined in real time, such as transaction declines at the point of sale, for example.
The regulator says the proposed rule would consider NSF fees applied to transactions involving the use of debit cards and ATMs as “unlawful” under the Consumer Financial Protection Act.
