PaySound® Allows Financial Institutions to Offer Checking Account with No Overdraft Fees... Ever!

Posted by W. Barrett Nichols, founder & CEO on May 24, 2016 11:07:38 PM

paysound_website_mockup.jpgRight on the heels of our latest product release, I am pleased to unveil the addition of another revenue-generating solution for financial institutions: PaySound®—the online checking account that does not allow overdrafts.   

PaySound combines a full-service, mobile-ready checking account with an optional line of credit (from $500 to $5,000) for those of your account holders who do not want to incur even a single overdraft charge. These account holders may have opted out of your discretionary overdraft program or they use alternative sources of short-term funding. 

For whatever reason, they do not want their financial institution to allow them to spend more than they have in their accounts; and recent research shows that many of them are willing to pay for the certainty of no overdraft fees.

PaySound helps your institution provide that assurance, extremely quickly and inexpensively, while offering a simple back-up funding plan in case of emergencies or when they fall short. The system never assesses an NSF (non-sufficient funds) charge even for returned ACH (Automated Clearing House) and check items.

The program creates a new stream of income for your institution from the account's monthly charge, interest and debit card interchange fees, at a time when revenue-generation and profitability are paramount. It also helps your institution address the Consumer Financial Protection Bureau's (CFPB) directive to allow greater access to checking account alternatives, especially those that do not permit a consumer to overdraft.

READ the PaySound News Release

Simple, yet safe, web-based platform. PaySound's web-based platform, branded to your institution, allows consumers to apply for the account in seconds and transfer funds easily as needed.The PaySound platform can be operational in 30 days or less, including comprehensive operational and front-line training, which translates into a rapid increase in income and customer service.

Your terms. Our automation. Your financial institution sets the underwriting terms and rates, as well as the monthly fee for the account, which is typically between $9.95 and $19.95. Our automated approval platform safely incorporates account holder deposit activity with credit bureau credit reports to automatically approve installment loans up to $5,000. For loans less than $1,000, no credit score is needed. To ensure ongoing soundness and to mitigate risk, the end-to-end system automatically grades and monitors accounts quarterly, reviewing cash flow and credit information.

Regulatory concerns and consumer demand suggested that we expand our overdraft management solutions for financial institutions. PaySound is the ideal alternative for financial institutions that want to provide a safe short-term liquidity option for their account holders, while increasing income and maintaining complete compliance.  

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Let us give you an ONLINE DEMO of the PaySound system today. 


Topics: News, Company News, Fee Income, Digital Lending, PaySound