Fnb paying on "behalf" of their customer

Dear First National Bank Complaints Department,

I am writing to this complaint to formally dispute a charge of R200 that was deducted from my account under the description “Item Paid no funds" following a transaction that was deducted even after not having a sufficient available balance.

I understand FNB’s explanation that when a card is swiped, the available balance may not update immediately, which can allow a second transaction to go through. This was explained to my wife including that the amount deducted is fnb paying the shortfall on your behalf. However, the way this situation is handled reveals a serious and unfair flaw in the system.

In my case, the transaction amount was still deducted from my actual account balance, in addition to the R200 “paid on my behalf” charge. This means:

- FNB did not cover the transaction as claimed - My balance was reduced by the purchase and or transfer amount and the R200 fee - I effectively paid double or even more for the same transaction

If FNB had genuinely paid on my behalf, the transaction amount should not also have been deducted from my balance. Charging both the transaction amount and an additional “paid on your behalf” amount is not a temporary advance—it is a direct penalty.

What makes this more concerning is that:

- The transaction was not declined, even though balance was insufficient - I was given no opportunity to cancel or prevent the charge - The fee is app**** automatically, without transparent consent

This exact issue has affected not only myself, but also my wife and many other FNB customers, most of whom reluctantly accept it as a “penalty” despite it not being clearly disclosed as such.

I believe this practice is:

- Misleading in its description - Disproportionate to the actual transaction - Unfairly punitive given that the bank’s own system delay enables it

I am therefore requesting:

1. A full reversal of the R200 charge, and 2. A full review of this "service" provided for fnb customers and a sufficient investigation into a better system that doesn't penalise customers because of a delay in bank information.