Overdraft Protection Products
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 and we offer the following overdraft protection products that may serve your business's particular needs and could save the business money.
Linked Deposit Accounts
Link the business's main checking account to another Tri Counties Bank account the business owns, such as a savings account and, in the event the checking account becomes overdrawn as a result of a check or Automated Clearing House (ACH) transaction, available funds will be automatically transferred once at the end of the day from the linked account to the checking account if sufficient to cover the amount of the overdraft and the Overdraft Transfer Fee. We will charge the checking account a $10 Overdraft Transfer Fee per transfer. However, if the checking account is overdrawn $5 or less, we will not assess the $10 Overdraft Transfer Fee. Other restrictions apply. Call us at 1-800-982-2660 for more information on this product.
Automatic Cash Reserve (ACR)
An Automatic Cash Reserve (ACR) is a line of credit for which you apply and is subject to credit approval. In the event the business checking account becomes overdrawn as a result of an ATM transaction, everyday debit card transaction, check, Automated Clearing House (ACH) transaction, recurring debit card transaction or other transaction made using the business checking account number, available funds will be automatically transferred once per day in multiples of $50 (or for the unused portion of the credit line if it is less than $50) from the Automatic Cash Reserve line of credit to the checking account if sufficient to cover the amount of the overdraft and the Cash Advance Fee. The Annual Percentage Rate (APR) is 15%. Interest is charged from the date funds are advanced until repaid. Payments to reduce the balance on the ACR can be made at any time. We also charge a $5 Cash Advance Fee per transfer, limited to one transfer per day. This is not a commitment to lend. Other restrictions apply. Call us at 1-800-982-2660 for more information and to obtain an application.
Overdraft Protection Service
Overdraft Privilege is our discretionary overdraft service. Overdraft protection under our Overdraft Privilege service is expensive and may not be the best option for your business. You may at any time choose to decline Overdraft Privilege
After the account has been open for at least 60 days, the business may qualify for this service. If it does, an Overdraft Privilege limit will be assigned to the account. The amount of the Overdraft Privilege limit assigned to the account can change (go up or down) at any time. The amount is based on several factors including the account history and deposit activity and patterns. As long as the business maintains its account in “good standing”, we may in our discretion approve overdraft transactions within the available 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
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 for the business in excess of the limit assigned to the account. The standard fee is $32.00 for each transaction that overdraws the account up to $128 per day (which equals 4 overdraft fees). We do not charge the $32.00 fee, if after all transactions presented to the account in any given day are paid, the account balance is overdrawn $5 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 Privilege Options
You can choose to decline Overdraft Privilege at any time.
Full Overdraft Privilege coverage includes discretionary overdraft coverage of the following transactions:
- Automatic 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:
- All credits/deposits
- Cash paid items--checks you have written that are cashed in person at a Bank branch.
- Debit card point-of-sale transactions and ATM withdrawals will be debited in the order received.
- Electronic debits through Online Banking, Mobile Banking, Cash Management or the 24 hour automated customer service.
- Electronically-converted checks and Automated Clearing House (ACH) transactions including electronic BillPay payments.
- Checks (including paper BillPay payments) will be debited in check number sequence. This means that the check with the LOWEST check number will be paid FIRST and then the remaining checks will be paid in sequence to the highest check number.
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 $32.00 for each transaction that overdraws your account, up to $128 per day (which equals 4 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.
You must advise us at account opening which option best meets your business's needs.
Frequently Asked Questions
Q: How does the business get overdraft protection?
A: You can call us at 1-800-982-2660 to find out more information on overdraft protection. Our Customer Service Department hours are Monday-Friday 7:00am-8:00pm, Saturday 9am-7:00pm, and Sunday 11:00am-5:00pm. You can also stop by any local Tri Counties Bank branch.
Q: Can more than one account be linked for overdraft protection?
A: Yes, the business's main checking account can be linked to multiple deposit accounts for overdraft protection. If the business has more than one eligible account that could serve as overdraft protection for the checking account, you will need to designate the access order for each account. You can always change the order of the linked accounts for overdraft protection by contacting our Customer Service Department at 1-800-982-2660, or by visiting your local Tri Counties Bank branch.
Q: Can the business change their overdraft protection linked account(s)?
A: Yes. You can change the linked account for overdraft protection by visiting your local Tri Counties Bank branch.
Q: What’s the difference between “Current” and “Available” balance?
A: The Current Balance is the balance in the account at the close of the previous business day.
A: 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
Q: How do I know when the business uses an overdraft protection product?
A: If the business uses a Linked Deposit Account to serve as overdraft protection, you will receive a notice when funds are pulled from this account in order to cover an overdraft. The notice will show the account number the funds were transferred to, the account number the funds were transferred from, the amount transferred and the transfer fee incurred. This information will also reflect on the statements for the accounts. If the business is also signed up for Online Banking, the Overdraft Transfer will also be listed as a line item in the account activity. Be sure to add this transfer to the check register, and any fees that also apply.
If the business has an Automatic Cash Reserve (ACR) account in place, you will receive a Transfer Notice once funds have been transferred to cover an account. Be sure to add this transfer to the check register, and any fees that also apply.
If an item is presented that would overdraw the account, you will receive a Non-Sufficient Funds (NSF) notice in the mail. The notice will show the check number, serial/Electronic Funds Transfer (EFT) number, amount, total Non-sufficient Funds (NSF) fee(s) and action taken (Paid/Returned). You should subtract total of all transactions paid and fees from the check register.
Q: What does Overdraft Privilege cost?
A: The fee is $32.00 for each transaction that overdraws the account, up to $128 per day (which equals 4 overdraft fees). We do not charge the $32.00 fee, if after all transactions presented to the account in any given day are paid, the account balance is overdrawn $5 or less.
Q: If the business decides on Overdraft Privilege, do we need to put this in place at account opening?
A: Yes, you must advise us at account opening which option best meets the business's needs. However you can opt out or decline Overdraft Privilege at any time as well as select or opt in Overdraft Privilege.
Q: What if the business decides later that another overdraft protection option is best for them?
A: If the business changes its mind and wants to:
- decline Overdraft Privilege, all you need to do is call us at 1-800-982-2660 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 1-800-982-2660 or visit your local branch to make the desired change to the business account
Q: How quickly must the business repay its Overdraft Privilege?
A: 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 funds.
Q: How does the business retain its Overdraft Privilege?
A: 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.
Q: When an authorized signer calls the Customer Service Department to get the business account balance, is the Overdraft Privilege limit included?
A: No, it will not be reflected in the "available balance."
Q: What if the business goes beyond its Overdraft Privilege limit?
A: 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 $32.00 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.
Q: What happens if the business selects no overdraft protection at all?
A: 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 $32.00 fee for returning checks and Automated Clearing House (ACH) transactions.
- Linked Deposit Account/Automatic Cash Reserve Disclosure
- Business Overdraft Privilege Disclosure
- Business Fee Schedule for current service fees
- Business Deposit Account Agreement and Disclosures
- FDIC Guide to Preventing and Managing Overdraft Fees