Pre-Authorization Courtesy Pay and Negative Fees in Online Control

This document provides technical guidance on configuring and understanding the “Pre-Authorization Courtesy Pay and Negative Fees” parameters within the FLEX Online Control system. These parameters dictate how and when Non-Sufficient Funds (NSF) handling fees are applied, specifically in scenarios involving pre-authorized transactions.

1. Overview of Online Control Parameters

The FLEX Online Configurations include control parameters that govern the application of Courtesy Pay and Negative Fees. These settings are crucial for defining the system’s behavior regarding NSF handling.

The following two key parameters are detailed below:

• Charge Neg Fee if Pre-Authed
• Charge CP Fee if Pre-Authed

2. Parameter Details

2.1. Charge Neg Fee if Pre-Authed

This parameter determines whether a negative balance fee will be charged on transactions that cause an account to go negative, even if a pre-authorization exists for those transactions.

• Configuration Options:
  • N or Blank: Fees will not be collected on transactions for which a pre-authorization exists. The system will bypass the negative fee collection in these specific cases.
  • (Other values/Y – Implied): Fees will be collected on transactions where the account goes negative, despite a pre-authorization.

2.2. Charge Courtesy Pay Fee if Pre-Authed

This parameter indicates whether a Courtesy Pay fee will be charged on transactions that take an account into courtesy pay status, even if a pre-authorization exists for those transactions.

• Configuration Options:
  • P: Collect fee based on account availability at the time of pre-authorization.
    • Fee Collection Time: Although the fee is collected at the time of transaction completion, the system will evaluate the account’s availability at the time the pre-authorization occurred.
    • Scenario 1: Non-Courtesy Pay Funds Available at Pre-Authorization:
      • If other (non-courtesy pay) funds were available in the account at the time of the pre-authorization, a courtesy pay fee will not be collected. This holds true even if the account is negative at the time of transaction completion.
    • Scenario 2: Non-Courtesy Pay Funds NOT Available at Pre-Authorization:
      • If other funds were not available at the time of the pre-authorization, a fee will be collected. This applies even if the account has sufficient funds at the time of transaction completion.
  • (Other values/N – Implied): Fees will not be collected based on pre-authorization availability.

3. Handling Transactions Without Corresponding Pre-Authorizations

In scenarios where a transaction completes and no corresponding pre-authorization is found:

• If the transaction causes the account to go negative (or further negative), a fee will be collected. This applies regardless of the “Charge Neg Fee if Pre-Authed” or “Charge CP Fee if Pre-Authed” settings, as these specific parameters only apply when a pre-authorization is found.