Wells Fargo Bank changes processing policy (it’s a good move for account holders)

A bit low brow…

In the event that if you would have a larger amount transaction; like $332.86 (regardless of when it was swiped that day or when it was presented to the bank it would be processed first, then the smaller amount transactions would be later presented $26.82, $14.87, $3.29.

What’s all the fuss?

Here’s where it gets a bit sneaky…you go to the gas station and you put $75.81 of gas in your car using your VISA ATM CHECK CARD.  It only authorizes $1.00 on your checking account and the actual $75.81 may not hit for 2-5 days.

So you may think you have more money in your account than you do. (Most people are not reconciling their personal or business checking account daily, (alright…maybe only you do.)

All the while you are racking up debit card transactions that have not settled yet, then finally some of these delayed larger purchases post. The bank by default will post highest to lowest…this is exactly what I have seen on client bank accounts, where someone generates $350 in Insufficient Fund Fees on a Tuesday morning after a long weekend.

The larger amount post first, then you end up getting charged a NSF Fee of $35 for that $2.89 Red Bull you got at the gas station.

Positive policy change, I like this.

Effective August 11, 2014 Wells Fargo Bank is changing their policy on how they process. (I hope this could be a shift for the whole banking industry). Checks and automatic payments will now be processed on the date and time they are received and starting from lowest to highest dollar amount. On the whole, I think this will really help all of those people that have been held hostage from predatory bank processing.

If you struggle with keeping all of your business finances together and just wished you had good financial reports; please give us a call (916) 520-8560.

- TODD

Todd Lay
SimpleBackOffice
916/520-8560