Overdraft Protection

What is an overdraft?

An overdraft occurs when you do not have enough money in your account to cover a transaction, like a cash withdrawal at an ATM or a purchase with a debit card at a store. At our discretion, we may decide to pay the check or process the transaction even though you don’t have sufficient funds available; however there is no guarantee that we will decide to do that. In some cases, your check will be returned or your transaction will be denied. If we do decide to process transactions that overdraw your account, you will be charged a fee for each item, unless you have one of our overdraft services.

What are the standard overdraft practices that come with my account?

We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to:

  • ATM transactions
  • Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.

What is Overdraft Protection?

Overdraft Protection is an overdraft line of credit, which allows you to overdraw your checking account up to the amount of your pre-established credit line. Interest is charged on the amount borrowed against the overdraft protection until you make a deposit, which will first be applied to the overdraft protection. Any remaining deposit balance is added to your checking account.

What about overdrafts at the ATM, or when I use my debit card?

We may allow you to overdraw your account at the ATM or when using your Debit Card, but in order for us to allow ATM and one-time debit card transactions to overdraw your account, we are required to obtain your consent (you must “opt-in”). Upon your consent, we will, at our discretion, pay for ATM and one-time debit card transactions when there are insufficient funds in your account. If you do not “opt-in” then those transactions will be declined. This service is in addition to the authorization and payment of checks, automatic bill payments, and other transactions made using your checking account number.

How does this Opt-In Service benefit me?

Many customers find the service to be a convenient and cost-effective means of preventing the denial of transactions using an ATM or debit card that would overdraw their accounts. Even if you've never overdrawn before, it's good to know you could be covered.

Ask your personal banker for a copy of the Service Fee Schedule.

How do I Opt In or Opt Out of Overdraft Protection?

You can request to Opt In or Opt Out of Overdraft Protection for your account by submitting the eSign document below. A signed paper copy of the document is not necessary: the process can all be completed at your home or office.

Fill out the document at your convenience and electronically sign and submit when complete. An electronic copy will be sent via email to First American Bank and to your email address.

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