Why do banks charge NSF fees even if the transaction is returned unpaid? If they don't pay the overdraft what's the reason for a fee?

6 Answers

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  • 1 month ago

    To cover their costs.

    If you don't want to pay fees, don't write bad cheques. 

  • 1 month ago

    Returning it takes up their time; they have to pay the workers involved in processing it.

  • 1 month ago

    They think of it as a profit center. If you complain they'll often give you your money back, and otherwise its free money to them. If you don't like it, get overdraft protection or put your money elsewhere (or don't overdraft your account - duh).

  • Never
    Lv 7
    1 month ago

    Not all do.  I think they just consider it a revenue source. I've had good luck with credit unions waiving them as long as I don't do it often. And one bank account I overdrafted by mistake and noticed it early and transferred money in from my broker who does really fast ACH transfers. That bank said they don't charge you unless you end the day negative.

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  • 1 month ago

    1. It costs the bank resources to process the transaction.

    2. It reduces purposeful overdrafts, in the event there is a banking error.

  • Judy
    Lv 7
    1 month ago

    It costs them to return th check.

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