Overview

Occasionally, it is necessary to be able to approve overdrafts in a quick manner as a routine part of business. These approved overdrafts are considered extensions of credit; make them with care.

The following are overdraft (OD) and Non-Sufficient Funds (NSF) limits for the Retail Bank:

• Client Xperience Manager (CXM)                        $5,000
• Regional Xperience Manager (RXM)                   $5,000
• All other associates with lending authority          individual unsecured lending limit

Any item(s) paid that result in an overdraft balance must be approved by a Client Experience Manager I or II (CXM); Regional Experience Manager (RXM) within his/her $5,000 overdraft approval limit; or by a lending associate within his/her individual unsecured lending limit. This process can be completed by another associate under the direction of a lender, CXM or RXM.

After paying items, if the resulting balance is overdrawn by $5,000 or more, the CXM, RXM, or lender sends an email noting approval of the overdrawn balance to Deposit Services at _Return Check Instructions. 

The deadline for making NSF/Return item decisions is 12 noon, EST.

For a short training video on how to approve overdrafts (work the NSF report) see the Instructional Video tab.

EIP Input Instructions

To approve overdrafts/EIP, do the following:

1. In Xperience click SilverLake > EIP Menu > Work with NSF/UCF Items.
2. View and work returns by clicking the Filter drop-down box and selecting the appropriate office or officer.
   • The Items Summary screen lists the account(s) associated with that office (branch) number or those assigned to a specific bank associate as the account or relationship officer that are being presented against insufficient funds. 
   • Note: If a message appears on the screen that reads, No Records To Display that means that there are no items on the report for the current day.
3. To view the item(s) and account information and input a pay disposition code, click the Account Name of the first client (DO NOT select account number). 
4. Refer to the list below to select the Disposition, Reason and Source. 
5. All items in EIP are pre-dispositioned to RC-Return/Charge, PC-Pay/Charge, or PW-Pay/Waive. 
   • For RC items:
     1.  Work these items by marking those you want to pay with one of the paid disposition codes below in the box under the Disposition Code field, next to the item to be paid. 
     2. Delete the corresponding Return Reason and Source codes when paying the item. 
     3. An error message displays if these fields are not cleared for the paid items.
     4. Do not change the return reason or source code fields if the item is being returned. 
   • For PC/PW items:
     1. Do not work these items. 
     2. The pre-dispositioned PC/PW items are debit card items, cashed checks, or similar types of pre-authorized items. If the item is pre-dispositioned to PW, the client is opted-out or the item is being paid within the bank’s tolerance or OD fee limits. 
     3. Because these items were already authorized, they cannot be returned. 
6. Pay Items: Use one of the 5 disposition codes below to pay items. 
   • PC – PAY & CHARGE
     1. To pay the item and assess the OD fee. 
        • Disposition: Pay Item 
        • Fee: $35.00 
        • Mail Notice: Yes 
   • PW – PAY & WAIVE
     1. To pay the item and waive the fee based on officer approval. 
        • Disposition: Pay Item 
        • Fee: Waived 
        • Mail Notice: Yes 
   • PZ – DISRUPTIVE EVENT, PAY & WAIVE
     1. To pay items if a deposit was not processed (client or bank inability) because of a market-wide disruptive event. 
        • Disposition: Pay Item 
        • Fee: Waived 
        • Mail Notice: Yes  
   • PF – FRAUD, PAY & WAIVE
     1. To pay items when the account is restricted due to fraud. Deposit Services verifies the fraud alert message on the account or contacts the associate if no alert message has been entered.  
        • Disposition: Pay Item 
        • Fee: Waived 
        • Mail Notice: No 
   • PN – BANK ERROR, PAY & WAIVE
     1. To pay items exclusively related to bank errors. Deposit Services contacts the associate using this disposition code.
        • Disposition: Pay Item 
        • Fee: Waived 
        • Mail Notice: No 

   • Paid Item Example:

     

     Delete

     
     

7. Return Items: Use one of the 2 disposition codes below to return items and DO NOT DELETE the reason and source fields.
   • RC - RETURN & CHARGE
     • To return the item and assess the OD fee.
       • Disposition: Return Item
       • Fee: $35.00
       • Mail Notice: Yes
   • RW - RETURN & WAIVE
     • To return the item and waive the fee based on officer approval.
       • Disposition: Return Item
       • Fee: Waived
       • Mail Notice: Yes
   • ***DO NOT USE*** RN - Federal Regulation requires Financial Institutions to send a notice to clients when returning items.

   • Returned Item Example:

     

     Delete

8. Once each account is reviewed and items have been marked with a PC, PW, PZ, PF, PN, RC, or RW disposition code, click OK. 

9. Click Yes to resolve and enter Select Officer Code of approving officer. Click OK to continue to the next client. 

10. All items in EIP returns must be resolved individually. This includes items that are predispositioned by the system.

    • Note: This is required to ensure Deposit Services is aware the EIP returns have been reviewed and worked for that day.
    • Disposition codes can be changed even after they are resolved.
      • Example: Item is returned and resolved by client makes a deposit at 11:30 and associate wants item paid. The disposition code can still be changed to paid.
11. Contact Call Me Direct (CMD) at ext. 397100 with any questions or issues.

** DO NOT USE - RESOLVE ALL BUTTON

Error Messages

6 Maximum OD Fees 

This error message displays if you have marked the item PC and the account has reached its daily maximum of 6 OD fees. Change the disposition code to PW for all items outside that limit. The waiver will be excluded from the NSF/OD Decisioned Fees Waive report. 

$5 OD Tolerance

This error message displays if you receive an error message if you have marked the item PC and the resulting overdraft when the item is paid is within the $5 OD tolerance limit. Change the disposition code to PW for this item. The waiver is excluded from the NSF/OD Decisioned Fees Waive report.

System Disruption Backup Procedures

Follow the steps below when Xperience is unavailable and/or when instructed by Capital City Services Center (CCSC) Deposit Operations or Retail Support. Under these circumstances, associates will be notified of the applicable cutoff time and any other pertinent information.

1. Access Synergy and print one or more of the reports that best meets your requirements for NSF/Return item decisions.
   • DD Folder: 
     • DD5250P DDA Insufficient Funds by Branch Number;DD5251 Insufficient Funds by Officer Name
   • EP Folder: 
     • EP6210P DDA Insufficient Funds by Branch NumberEP6220 DDA Insufficient Funds by Officer Name
   • Make your decision for all applicable accounts by officer or office location, assign one Disposition Code to each return item. See #6 in the EIP Input Instructions tab for full descriptions of the codes.
     • PC – Pay/Charge/Send Notice
     • PW – Pay/No Charge/Send Notice
     • PZ – DISRUPTIVE EVENT: Pay/No Charge/Send Notice
     • PF – FRAUD: Pay/No Charge/No Notice
     • PN – BANK ERROR: Pay/No Charge/No Notice
2. Complete the System Disruption NSF - Return Item Form.
   • List each item, corresponding disposition code and the officer/number under whose authority the item will be paid
   • List only “Pay” disposition items. All other items will be returned and charged.
3. After decisions have been made and recorded for each item, send the Return Check Instructions Form by e-mail to Deposit Services at _Return Check Instructions, or by fax at 850.402.7062.
4. Contact Call Me Direct at ext. 397100 with any questions or issues.

Best Practice Tips

Before changing a Return decision to Pay please consider the following:

1. THOROUGHLY review the client's account. Consider the entire relationship with us.
   • Deposit history - how likely are we to get those funds back?
   • Other charged off accounts
   • History of that account having been charged off in the past (see maintenance history)
   • How long have they been a client
2. Are there stop payments on that item?
   • Look at the stop payments on that account. 
     • If there is a stop on that item DO NOT change the return decision to pay as that item could get paid when our friends in Deposit Services go to work them because the disposition code was changed.  
     • If the client has contacted the office and the item should be paid, please remove the stop payment from the account and email _Stop Payment that the client has requested the item be paid.
       • Note: If there is a stop on account and you see that the item has not yet been returned, Deposit Services works these daily before noon. So, hang tight, it will get done.
3. Stop payments cannot be placed on debit card transactions and cannot be returned in EIP Returns. Debit card transactions must have a dispute filed.
4. Are there holds and/or Messages on the account? 
   • An item being held on an account means that those funds are not yet available to spend.  So, paying an item could end up resulting in a loss to the bank/client if that deposited item ends up being returned.  
   • A Legal hold for a Garnishment, Levy, Freeze could be any amount so it very important to review all holds.  The bank may be held liable for paying into a Legal hold.
   • A full balance hold could mean that account is being closed for fraud or other reasons. Looking at the messages on the account could indicate what items need to be paid and which ones do not (fraud), it could also indicate that items should be paid to/from the new account. 

     
     

Instructional Video

Click play to watch the video