Home > Learning Center > FAQs > Overdraft Protection Opt-In FAQs

Q: What is an Overdraft?

A: An overdraft occurs when you do not have enough money in your account to cover a payment you have authorized, but the bank pays it as an accommodation, trusting that you will repay the amount of the overdraft.


Q: What are the different options if I want payments paid when there is not enough money in the account to cover them?

A:

  1. We have standard overdraft practices that come with your account.
  2. We also offer overdraft protection plans, such as an overdraft line of credit, which may be less expensive than our standard overdraft practices.


Q: What does the overdraft regulation do?

A: The amendment prohibits financial institutions from charging consumers fees for paying overdrafts on ATM and everyday debit card transactions, unless a consumer consents in advance, or “opts-in,” to the overdraft service for those types of transactions.


Q: If I 'opt-in', will the bank always pay my ATM and everyday debit card transactions?

A: No. Unless you have signed up to link your checking account to another account such as an overdraft line of credit, the bank does not guarantee that your ATM and everyday debit card transaction will be paid even if you opt-in. These standard overdraft services are an accommodation provided at the bank’s discretion.


Q: If I do NOT 'opt-in", does it mean that I will never overdraw my account using my debit card for ATM or everyday transactions?

A: No. There are limited circumstances when it will not be possible for the bank to avoid paying an ATM or other debit card transaction you made, even if there is not enough money in your account. You should not assume that because the ATM or other debit card transaction goes through that there is enough money in your account to cover it. In these cases, the bank may not charge you an overdraft fee, but you still must re-pay the bank to cover the overdraft.


Q: Beyond standard overdraft practices and linking my checking account to another account to cover overdrafts, are there other ways to avoid overdrafts?

A: The easiest way to avoid overdrafts is to keep track of your transactions and balance. Alerts are a great way for you to stay informed about activity of your accounts. You can receive timely notifications via email or text messages to your cell phone alerting you if your account balance falls below a specified amount, if a direct deposit is made to your account, and many more. To sign up for alerts, login to your Online Banking account.


Q: How do I 'opt-in'?

A:

If you want to keep the standard overdraft protection services on your debit card, you may choose to do one of the following:

  • Login to your Online Banking account
  • Speak with a Customer Service Representative
  • Visit us at any of our convenient branch locations