ANR (Auto Non Returns) Enhancements

During the 2019 Leadership Conference, we announced a plan to make some enhancements to the CU*BASE automated non-return (ANR) feature, sometimes referred to as Courtesy Pay.  We’ll use this recipe to keep you up to date on the ideas and projects we will be working on during the 2020 development year.

Review the slide from the 2019 Leadership Conference

Also read about ACH exception processing enhancements in the works

Project 1: Channel Pricing

With this project we’ll be adjusting the ANR fee configuration that so that you can configure a different fee based on the transaction origin code.  This means you’ll be able to charge a different fee for overdraft services on debit card items than you do for checks or ACH transactions.

Status as of December 2019:  Still in the design phases.

Project 2: No-Fee Transactions

With this project we’ll add a new no-fee transaction threshold amount to the ANR fee configuration.  This means you’ll be able to waive your normal non-return fee for any transactions that fall below a certain dollar amount, such as $10.00.  So if a $8.50 transaction comes in and causes the account to dip into the negative balance limit, your normal ANR fee would not be charged.

Status as of December 2019:  Still in the design phases.

Other Ideas We’re Considering

We recently had a minor issue come up related to the daily ANR activation feature, which resulted in some members not being granted an ANR limit that should have been (read the alert).  While we promptly made the necessary corrections, it got us thinking about whether we should develop additional tools to help CUs ensure their configurations are working as intended.  ANR is a multi-layered process with a lot of moving parts, and while we do our best to test as many different scenarios as possible, there is no way our QC testing can replicate all of the variations that are in the field. So we depend on credit unions to review the daily activation/deactivation reports and monitor results to ensure their configurations are working as expected.

We are exploring some ideas now specifically on how to see more details about ANR settings and activity by member.  But we can’t do this alone.  What else can we do to help you understand if and when ANR should activate or deactivate for your members?  Leave a comment below with your ideas!

Status as of December 2019:  Still in the design phases.

FAQs

Q:  A local bank has what they call “24 hour grace” for their checking accounts. What is that and can we do that with CU*BASE?

A:  Our understanding is that this is an optional program where customers have 24 hours to make deposits in order to avoid overdraft fees.  From everything we can gather we believe this is done manually by via fee refunds once a customer makes the deposit to cover an NSF item.  According to their website, this doesn’t apply to return fees, only to overdraft (non-return) fees. You can certainly do this in CU*BASE for your members by monitoring accounts and refunding ANR fees.  We are not currently looking at developing any mechanism to do this is in an automated fashion.  If your credit union wants to be a project champion and assist us in designing such a program, please reach out to Keegan Daniel at EarningsEdge (kdaniel@cuanswers.com)!  24-Hour Grace® is a registered trademark of Huntington Bank.

Comments

If you have thoughts or ideas you’d like to share, please leave a comment. We’d love to hear from you!

Your chefs for this recipe are Randy Karnes, Keegan Daniel, and Dawn Moore.

Updated
December 3, 2019

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