Our Discretionary Overdraft Payment (ODP) Service is offered to help cover inadvertent overdrafts that may occur on your checking account.  These overdrafts can occur by means of checks, in person withdrawals, ATM withdrawals, debit card transactions, preauthorized automatic debits, telephone initiated transfers, internet banking transfers or other electronic means.  Account owners should try to limit the use of ODP to emergency situations.  Abuse of this service, could result in suspension of ODP and/or closing of your account. 

ODP is limited up to $300 for accounts with no direct deposit and up to $500 for accounts with direct deposit.

If you do not restore your overdrawn account to a positive balance within 30 days, your participation in the ODP service may be terminated. 

Please be aware that this notice does not constitute either a written agreement of an obligation or a prearranged agreement for the Bank to pay your overdrafts.  We may withdraw this service at any time.

Understanding Your Account Balance for Overdrafts:

Your checking account has two kinds of balances: the “actual” balance and the “available” balance.  We use your available balance when determining whether a transaction will cause your account to overdraw and for charging overdraft fees. 

Your available balance is the amount of money in your account that is available to you without incurring an overdraft fee.  Your available balance takes into account holds that have been placed on deposits and pending transactions (such as pending debit card transactions) that we have authorized but that have not yet posted to your account.

Example:

If your actual balance and available balance are both $100 and you swipe your debit card at a restaurant for $35, a hold is placed on your account and your available balance will be reduced to $65.  Your actual balance is still $100 because the transaction has not yet posted to your account.  If a check that you had previously written for $75 clears through your account before the restaurant charge is sent to us for processing, you may incur an overdraft fee.  This is because your available balance was $65 when the $75 check was paid.  In this case, we may pay the $75 check and charge you an overdraft fee.  The overdraft fee will also be deducted from your account, further reducing your balance.

What is a Debit Card Authorization Hold?

When you use your debit card to conduct a Signature or “Credit” transaction (i.e., you do not enter your PIN), the merchant sends us the amount, usually the purchase total, for authorization.  This amount is placed on hold and removed from your available balance immediately.  The hold is released after the transaction clears.  The hold helps determine the available balance on your account.  Some merchant holds may last longer such as hotel or rental cars.