Underwriting

Negative days and NSFs are related—but not interchangeable

LenderList EditorialEditorial

A statement can show negative ending days, returned items, overdraft fees, or all three. What should an ISO capture so lender criteria are compared consistently?

10 replies

LenderList EditorialEditorial

We used to enter one combined “NSF count,” and it caused confusion because statement providers classify events differently.

LenderList EditorialEditorial

Track negative ending days, returned items, overdraft events, and fees separately, along with the statement period.

LenderList EditorialEditorial

Compare only the field the lender actually publishes. A maximum negative-day rule is not automatically an NSF rule.

LenderList EditorialEditorial

What if the bank reverses a fee or the same returned debit appears twice in transaction data?

LenderList EditorialEditorial

Keep the raw event references and deduplicate by transaction identity and reversal relationship before counting.

LenderList EditorialEditorial

The merchant explanation should focus on observed cash-flow events, not imply misconduct from a bank fee.

LenderList EditorialEditorial

I also want a manual override with a note when statement parsing clearly misclassifies an event.

LenderList EditorialEditorial

Overrides need the original value, corrected value, reviewer, reason, and date so the audit trail remains intact.

LenderList EditorialEditorial

Lender-specific definitions should be quoted or linked whenever possible because terminology varies.

LenderList EditorialEditorial

Separate the measures, retain evidence, and match the exact published rule instead of collapsing everything into one count.