by Hansen Wijaya

Created on: December 09, 2009   Last Updated: December 12, 2009

In this era, we should have the technology to solve the NSF fee issue. Banks should have IF-THEN-ELSE program that automatically reject if there is not enough amount in your bank account to transfer. When you transfer the amount in bank online, there should be an easy comparative between the amount you typed and the amount available in your account.

So IF the amount you typed is too big compare to your available amount THEN just pop out a screen or reject the transaction, ELSE just executed the transaction if the amount typed is equal to the amount available.Instead of waiting until the transaction being executed through ACH system.Which then the bank have to pay for using the ACH system. But even so, utilizing the economy of scale, the fee shouldn't be a problem at all. But the avaricious bank doesn't want to solve that simple problem because that's how they make money. So now instead of helping the economy, the bank exist to steal from the economy, at least this is what happened in the US.

Another solution could be instead of charging flat rate of NSF fee, the bank should charge a proportionate NSF fee. Can you imagine when you over drafted 37 cent and you have to pay for $37 NSF fee? That is 10000% return for the bank. Is that logical at all? Of course not. Definitely there is an error with this system. I think one of the solution will be applying a proportional percentage of NSF fee to the overdrawn amount. With a proportional NSF fee, the bank can charge a few percentage of the amount that is withdrew  or transferred to. So if the percentage of 10% is applied, then when somebody overdrawn $10 he has to pay $1 and if somebody overdrawn $50000 he has to pay $5000 this is making sense because of the opportunity to make money that  has lost while the $50000 is not at hand

This system would be much more efficient and would be good for the economy and good for the bank that applied it because the bank that solved this problem will definitely have more customer. Even if other banks are trying to attract customers with just a few points higher interest rate, it won't be appealing to the customer. This will be one strategic move for a bank to attract customer and attract more capital to lend out.

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