Question

Why do banks charge a fee on 'insufficient funds' when they know there is not enough? ✔​

Answer 1

Explanation:

Banks often charge NSF fees when a presented payment is returned due to insufficient funds. A similar fee may be assessed when honoring payments from accounts with insufficient balances. ... You usually also have the option to link at least one backup account, such as a savings account or credit card.

Answer 2

Answer:

Non-sufficient or insufficient funds occur when someone doesn't have enough money in their account to cover a transaction or payment. In most cases, if you spend more than what you have in your account, you will be charged an NSF fee from your bank. ... The most common cause for NSF is automatic withdrawal