We would like to take this opportunity to remind you that you should not overdraw your account. When you overdraw your account, our resulting fees and charges can be very expensive. By not overdrawing your account, you can avoid these fees. We hope to help you understand its possible impact on your business. We also offer alternative products that may better serve your business's particular needs and could save your business money. Call us at 1-800-922-8742 to inquire about our overdraft protection products.
How does Overdraft Privilege work?
After the account has been open for at least 60 days, the business may be eligible for this discretionary service. If it is, an Overdraft Privilege limit will be assigned to the account based on the type of account you have. As long as the business maintains its account in “good standing”, we may in our discretion approve overdraft transactions within the available Overdraft Privilege limit assigned to the account as a non-contractual courtesy.
We consider the account to be in “good standing” for purposes of Overdraft Privilege if you:
- make sufficient deposits to bring the account to a positive end-of-day balance within 30 calendar days after the date the account was initially overdrawn (including the payment of all bank fees and charges)
- avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit
- have no legal orders, levies or liens against the account.
The standard fee is $29.50 for each transaction that overdraws the account up to $177 per day (which equals 6 overdraft fees).We do not charge the $29.50 fee, if after all transactions presented to the account in any given day are paid, the account balance is overdrawn $10 or less. We will promptly send you a notice when we pay a transaction that overdraws the account. You should subtract the transaction amount and the total fees from the account balance in the check register. We will also notify you when we return a transaction unpaid. You should subtract the total fees from the account balance in the check register. However, we have no obligation to notify you before we pay or return any transaction. There are no additional monthly fees associated with Overdraft Privilege and no interest or daily fee will be charged on the overdraft balance. Overdraft protection may also be available using the linked deposit account the business owns or from an Automatic Cash Reserve (ACR).
For more information on all of our overdraft products, including alternative products that may be less expensive for you, refer to Overdraft Protection Products.
What are the Overdraft Privilege Options and what types of transactions are included in each?
You can choose to decline Overdraft Privilege at any time.
Full Overdraft Privilege coverage includes discretionary overdraft coverage of the following transactions:
- Automated Clearing House (ACH) transactions including Automatic Bill Payments
- Checks and other transactions made using a checking account number
- Recurring debit card transactions
- “Every day Debit Card Transactions” also known as “one-time” debit card or point-of-sale (POS) transactions (such as a purchase you make at a merchant).
- ATM transactions
Order of Payment: The order in which we pay your checks and other transactions is important if there is not enough money in your account to pay all of the transactions presented on one day. In the normal course of business, we generally pay checks and other transactions presented for payment from your account on a single banking day in the following order:
1. Cash paid items (checks you have written that are cashed in person at a bank branch). 2. Point-of-Sale (POS) and ATM transactions will be debited in the order we receive them. 3. Electronic debits through Online Banking, Mobile Banking, Cash Management and 24-hour Telephone Banking. 4. Electronically converted checks and Automated Clearing House (ACH) transactions, including electronic BillPay payments. 5. Checks (including paper BillPay payments) will be charged to your account in numerical sequence. This means that the check with the LOWEST check number will be paid FIRST and then paid in sequence to the highest check number presented.
We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, please be aware that the order in which we pay transactions may create multiple overdrafts during a single banking day, and we will charge your account $29.50 for each transaction that overdraws your account, up to $177 per day (which equals 6 overdraft fees).
There is no particular order of payment that is favorable to you in every instance. There are advantages and disadvantages for any order of payment. In some cases your more important transactions (which may be those with higher dollar amounts) may get paid later in this sequence or may not be paid at all depending upon your account balance and the available Overdraft Privilege limit assigned to your account. Using this sequencing method is our way of trying to be neutral.
Does an option need to be chosen at account opening?
Yes, you must advise us at account opening which option best meets your business's needs.
What if the business decides later that another option is best for them?
If the business changes its mind and wants to:
- decline Overdraft Privilege, all you need to do is call us at 1-800-922-8742 or visit your local branch to make the desired change to the business account.
- switch from decline Overdraft Privilege to Full Overdraft Privilege, all you need to do is call us at 1-800-922-8742 or visit your local branch to make the desired change to the business account.
How do I know when the business uses the overdraft limit?
If an item is presented that would overdraw the account, you will receive a Non-Sufficient Funds notice in the mail. The notice will show the check number, serial/Electronic Funds Transfer (EFT) number, transaction amount, total Non-Sufficient Funds (NSF) fee(s) and action taken (Paid/Returned). You should subtract the total of all transactions paid and fees from the check register.
What if the business goes beyond its Overdraft Privilege limit?
Overdraft Privilege is not a line of credit. This is a discretionary service, which means we have the right to refuse to pay any transaction that would overdraw the account, in addition, normally we will not approve an overdraft in excess of the Overdraft Privilege limit assigned to the account. So as not to exceed the overdraft limit, please note that we will deduct the amount of each overdraft we pay plus our standard fee of $29.50 per overdraft from the Overdraft Privilege limit assigned to the account. The Overdraft Privilege limit assigned to the account will not be included in the account balance we provide when you ask for the account balance.
How quickly must the business repay its Overdraft Privilege?
The business should make every attempt to bring its account to a positive balance as quickly as possible. If the business is not able to do so, the business will receive a letter from us informing them of the situation and their options. If, after a period of time, the business does not bring its account to a positive balance, we will have no option but to close the account and take other steps to recover the funds.
How does the business retain its Overdraft Privilege?
To retain the Overdraft Privilege the business must bring its account to a positive end-of-day balance at least once every 30 calendar days.
What’s the Difference between “Current” and “Available” Balance?
The Current Balance is the balance in the account at the close of the previous business day.
The Available Balance is the amount of funds available for withdrawal and authorizing transactions. The Available Balance may be different than your business register balance (sometimes called Ledger Balance). The Available Balance is reduced by:
- the amount of pending transactions, such as a point-of-sale transaction
- funds on hold in accordance with our funds availability policy
- our receipt of notice that a transaction will be presented or returned
- our receipt of a legal process relating to the account
- your use of the account as security for a loan.
What does Overdraft Privilege cost?
The fee is $29.50 for each transaction that overdraws the account, up to $177 per day (which equals 6 overdraft fees). We do not charge the $29.50 fee, if after all transactions presented to the account in any given day are paid, the account balance is overdrawn $10 or less.
What happens if the business selects no overdraft protection at all?
If the business has no form of overdraft protection, we will refuse to authorize everyday debit card transactions and ATM transactions that would overdraw the account (unless the business has an Automatic Cash Reserve (ACR) alternative). There is no charge by us for declining these transactions.
We will also return checks and Automated Clearing House (ACH) transactions and reject recurring debit card transactions that would overdraw your account (unless the business has a Linked Deposit Account or Automatic Cash Reserve alternative). We charge a $29.50 fee for returning checks and Automated Clearing House (ACH) transactions.
When an authorized signer calls the Customer Service Department to get the business account balance, is the Overdraft Privilege limit included?
No, it will not be reflected in the "available balance."
If you have additional questions or would like more information, call our Customer Service Department at 1-800-922-8742 or visit your local branch.
For more information regarding Business Overdraft Privilege, please refer to our Business Overdraft Privilege Disclosure.