Q and A with a WBA

To help customers avoid paying overdraft fees — some studies estimate that U.S. consumers pay as much as $17 billion in overdraft fees annually — PNC developed Low Cash ModeSM, a groundbreaking digital tool that empowers customers to avoid overdraft fees through unprecedented account transparency and control.

PNC-Certified Women’s Business Advocate Cathleen Walker is also regional president for Phoenix and Northern Arizona, an expansion market for PNC that is poised for growth as a result of its acquisition of BBVA USA. Walker shares why Low Cash Mode is creating a great first impression for PNC in her market.

INSIGHTS:

How do you describe Low Cash Mode to customers?

WALKER:

Low Cash Mode is a digital tool available to Virtual Wallet® customers through the PNC mobile banking app^{[1, 2]}. It gives customers control over potential overdrafts by alerting them when an overdraft is about to occur and then giving them at least 24 hours of Extra Time, and often more, to replenish their account before fees are charged^[3]. Low Cash Mode also provides a payment control feature, which shows customers in real time which transactions could result in an overdraft, and gives them the power to choose which eligible transactions to pay and which to return^[4], rather than leaving those decisions to the bank. It’s truly a breakthrough experience: Low Cash Mode allows customers to make the cash-flow decisions that are right for them in the moment.

INSIGHTS:

When might a PNC customer find Low Cash Mode to be most useful?

WALKER:

Everyone has low-cash moments, and we all make honest mistakes. Maybe we miscalculate an automatic payment (my electric bill was more than twice its usual amount this month due to air conditioning costs) or misjudge when a deposit might clear. With Low Cash Mode, if we haven’t anticipated that large bill or our timing is off, we have the opportunity to correct that and avoid fees altogether.

INSIGHTS:

PNC delivered more than 10 million alerts to 2.5 million customers in the first three months after Low Cash Mode was launched. More than 80% of customers who experienced a negative balance cured their accounts within the extra time period. Overdraft and non-sufficient fund fees were cut in half. Why is PNC walking away from roughly $150 million in annual fees to empower customers in this way?

WALKER:

Our leadership team resolved to protect customers from incurring unnecessary overdraft fees because it is the right thing to do for our customers and for our bank. We are now providing customers with tools that give them greater transparency into their account and control over their transactions. I don’t believe anyone else out there is taking this type of approach, and we’re proud of the statement we’re making with this notable step.

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Important Legal Disclosures and Information

1. Low Cash Mode is only available on the Spend account of your Virtual Wallet product.

2. PNC does not charge a fee for Mobile Banking. However, third party message and data rates may apply. These include fees your wireless carrier may charge you for data usage and text messaging services. Check with your wireless carrier for details regarding your specific wireless plan and any data usage or text messaging charges that may apply. Also, a supported mobile device is needed to use the Mobile Banking App. Eligible PNC Bank account and PNC Bank Online Banking required. Certain other restrictions apply. See the mobile banking terms and conditions in the PNC Online Banking Service Agreement.

3. In order to avoid overdraft fees, you must bring the available balance in your account to at least $0 before your Extra Time expires. If you make a deposit, the time it takes for your deposit to be reflected in your available balance and for those funds to become available to you will vary based on the deposit type and time. Depending on your deposit type or your deposit time, your deposit may not be available before your Extra Time period expires, and you may incur overdraft fees. See your Funds Availability policy for more information. Overdrawing an account, maintaining a negative available balance for any period of time, and returning transactions as unpaid may have other consequences, including account closure or negative impacts to your ability to obtain financial services including loans, deposit accounts, and other services at PNC and other institutions.

4. Debit card transactions do not qualify for Payment Control. When you choose to return an item that has been presented to PNC for payment, we will return the item to the payee’s bank for insufficient funds, and the payee will not receive payment from PNC. You may still have an obligation to pay the payee for goods, services or other products. PNC is not responsible for satisfying any obligations between you and the payee or any other party with respect to an item you decide to return. Before choosing to return an item, you should consider rules the payee may have or actions the payee may take on late/returned payments. Overdrawing an account, maintaining a negative available balance for any period of time, and returning transactions as unpaid may have other consequences, including account closure or negative impacts to your ability to obtain financial services including loans, deposit accounts, and other services at PNC and other institutions.

Low Cash Mode is a service mark of the PNC Financial Services Group, Inc.

Virtual Wallet is a registered trademark of the PNC Financial Services Group, Inc.

These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. PNC urges its customers to do independent research and to consult with financial and legal professionals before making any financial decisions. This site may provide reference to Internet sites as a convenience to our readers. While PNC endeavors to provide resources that are reputable and safe, we cannot be held responsible for the information, products or services obtained on such sites and will not be liable for any damages arising from your access to such sites. The content, accuracy, opinions expressed and links provided by these resources are not investigated, verified, monitored or endorsed by PNC.

Q&A with a WBA

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Important Legal Disclosures and Information