Unavailable funds fee is a penalty fee applied by a bank on a transaction account when a transaction is posted to an account that has negative available balance even though it has a positive physical balance. The fee is distinct from a non-sufficient funds fee as there is a positive physical balance but some or all the funds are on hold meaning that the balance is not yet available.
Bank fees such as the unavailable funds fee are contentious and have been the subject of some debate. Consumer advocacy groups have criticised them as opaque and unfair and that they particularly penalise the poor and fees do not reflect the banks costs. The banks argue that its penalty not a transaction fee. These fees have become a major source of income for banks replacing the traditional account and transaction fees which in many countries have disappeared.
Read more about Unavailable Funds Fee: Overview
Famous quotes containing the word fee:
“As a general rule never take your whole fee in advance, nor any more than a small retainer. When fully paid beforehand, you are more than a common mortal if you can feel the same interest in the case, as if something was still in prospect for you, as well as for your client.”
—Abraham Lincoln (1809–1865)