NSF(Non-sufficient funds) and overdraft fees kick small businesses when they’re down. When cash flow is low, bills still need to be paid. Often business owners don’t have time to make every payment and transaction manually so they set up automatic transfers for common expenses like rent and payroll. This is where NSF and overdraft fees can really sting.
In 2019, American banks took $11 billion in overdraft fees from businesses and consumers. In March 2020, federal regulators stepped in to encourage banks to waive their overdraft fees amid the Coronavirus crisis. Instead the average penalty reached a record high of $33.47.
By charging high overdraft and NSF fees, many traditional banks are profiting off the small businesses and individuals who are hurting the most. A giant multimillion-dollar corporation probably doesn’t overdraw their own business account, and if they did, they could probably afford the fees. But for the family restaurant that’s struggling to keep the lights on, the tradesperson who has had a slow month, or the trucker taking time off to be with family, these fees are a real punch in the gut. For example, the average American small business makes around $50,000 per year, so if they are charged just one NSF per month, they could lose nearly 1% of their total revenue to these types of fees.
We believe that when our customers succeed, we succeed. That’s why we’ve eliminated NSF and overdraft fees for our customers. They will now pay just a $10 monthly fee for a NorthOne Account and $15 each time they send or receive domestic wire payments.
Our monthly rate of $10 let’s us deliver a Business Account that has all the features customers need to manage their business finances, without having to charge them for basic daily transactions.
We’ve done the work to remove NSF and overdraft fees to make sure our customers don’t get stung when cash flow is low and they need access to funds. If a business owner tries to withdraw more than they have, the transaction will be rejected, simple. They can’t overdraw more money than what’s in the account, and we won’t penalize them for making a mistake. It’s all part of our mission to simplify the lives of small business owners so they can focus on what matters most.
Information used here was collected from external publicly available sources. The Bancorp Bank is not responsible for the accuracy of external content sources.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).