Can end-customers overdraft their deposit accounts?

  • By default, Unit does not not allow overdrafting. At times, accounts can have negative balances for the following reasons:
  • One or more of your customers’ ACH transactions may have been returned. If an originated ACH debit settles, the funds are spent, and then the ACH is returned, the result can be a negative account balance. To avoid such situations, we recommend using our Plaid integration with Plaid Identity and Plaid Balance, as well as  a longer clearing period.
  • Card charges can be authorized for a certain amount and then settle for a larger amount. For example:   
      • Authorization Hold. This will appear as a pending charge on your account. The merchant has 31 days from the last authorization to process a final settlement. Common merchant types include hotels, vehicle rentals, airlines and cruise lines.
      • Tip Allowance. (e.g., restaurants, Uber rides, spas, bars). 
      • International service assessment (ISA) fees. Visa charges 1% of every international transaction. The ISA fee is added to card/purchase transactions at settlement.
  • Financial institutions may perform account verification by sending microdeposits in an amount less than $1.00. These would usually be a combination of micro-debit and micro-credit to the account, that would balance each other out. Incoming ACH micro-debits under $1.00 may occur before the micro-credit occurs and cause a negative balance. 
  • In some cases, merchants might force post a transaction that has not been authorized properly (e.g., charge for higher amount). Unit clients may have rights to dispute this transaction.
  • If there is a connectivity issue between Unit and Visa, card transactions may go through despite insufficient funds in the account.



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