What are apsn fees?

To combat these concerns, some financial institutions have implemented policies to prevent APSN overdraft fees. These policies may include notifying consumers of their available balance before authorizing a transaction or offering alternative options to avoid overdrafts.

The practice of assessing overdraft fees in this manner is known as "authorize positive, settle negative" (APSN). It occurs when a transaction is authorized based on a positive available balance but later settles when the balance becomes negative.

The APSN method can lead to confusion for consumers, who may not be aware that their account balance has changed since the time of the initial transaction authorization.

Additionally, some argue that these fees can be excessive and unfairly penalize consumers who may have inadvertently overdrawn their accounts.

Overdraft fees on debit card transactions are a contentious issue in the financial industry. These fees are charged when a consumer's account balance is insufficient to cover a transaction, even if the transaction was initially authorized when the balance was positive.