How does a financial institution manage pending payments so that they do not honor overdrafts without taking outstanding bill payments into consideration?
When Metavante’s EPS group encounters an NSF situation, they block the customer’s account. This means that no further bill payments are processed until the NSF is resolved. In effect, we manage the delivery of any further bill payments through our normal NSF process. The institution really has no way of monitoring outstanding bill payments in the pending queue. Most customers make use of single payments and don’t rely on recurring or future-dated payments. The single payments are logged by customers at any time during the day and can be adjusted at will until the: 8:00 p.m. CST extraction for processing. If this is a concern, consider how you currently manage how many on-us checks a customer has en route, and the amounts of each, when determining whether to allow an overdraft. That would be an analogous situation.
