J W asked in Business & FinanceCredit · 1 decade ago

What happens when u have an ach payment due and the account cant cover it???

Example. the account has -60.65. i set up an ach payment for 145.00 what happens? (Its bank of america in New Jersey)

1 Answer

  • lisa s
    Lv 6
    1 decade ago
    Favorite Answer

    It depends on the type of account that you have. Do you have overdraft protection?

    If you do the payment will be covered. Since your account is already negative I am guessing you dont have it...I think that this charge will probably be the one that will get your account closed.

    If you are going to open another account, this would be the time to do so since you are going to be reported to checksystems....(thus unable to open another account any place else)

    If you dont the bank has the option of paying the charge of $145.00 and debiting your account for that payment as well as an insufficent funds charge.

    If you can cancel the payment, I think it would be wise to do so

    The worst case would be where the bank rejects the debit and then you have to pay fees to ach for an insufficent funds/returned check (or whatever they call it) as well as late payment fees

    AND your bank charges you insufficent funds charges

    So that payment could easily cost you over $200.00 in the worst case scenario

    Original charge $145 (bounces)

    so Arc charges you $35.00 plus late fees (and if ARC is a credit card your interest rate will go up too (but that is next month's problem)

    Then your bank will charge you NSF of $25.00

    I suggest that you NEVER do auto payments for this very reason. Once started they are hard to stop if you were paying by check or even money order you could pay when you had the money....

    In the meantime, why not see if there is anything you can pawn....maybe you can borrow money from a parent or donate plasma to get the money quickly

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