Aug 18, 2017

Question: How Do Banks Process Transactions (and How Does It Impact Overdraft Fees)?

Hat tip to Brian Page for making me aware of this interactive from Pew Trusts that provides a visualization tool to show how one customer's transactions were reordered to maximize bank overdraft fees. 

Here's the list of transactions (Ms. Gutierrez's order) and students can click on "How Wells Fargo reordered them" to see what the impact is:

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This NGPF Checking Project: Overdraft Fee Analysis is a favorite as students analyze checking account agreements to see how different banks deal with this policy of reordering transactions. It may sound dry but the several times that we have used it the students have enjoyed the challenge of figuring out the costs. 

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