Overdraft Protection Options
No one likes an unexpected overdraft or a returned item. At HCB, we offer Overdraft Protection Options to help you manage the occasional mistake and tools to prevent overdrafts and associated fees.
How Do Overdrafts Occur?
An overdraft occurs when you do not have enough money in your account to cover a transaction. The item can be paid in an overdraft or returned due to non-sufficient funds.
What Can I Do to Avoid Overdrafts and Non-Sufficient Funds?
TRACK YOUR BALANCE
Keep a register as this tool will track any outstanding checks written and scheduled payments.
Before you spend, check your balance against your register through Online or Mobile Banking. You can also check your balance at any HCB ATM or through iTalk – our Telephone Banking Service.
Remember, only you know your balance so consider automatic payments or withdrawals and checks written and not cleared.
Set up balance alerts in Online or Mobile Banking. You can choose between text or email alerts. Set the balance threshold that will trigger the alert.
You will find this feature as an option connected to your account in Online or Mobile Banking. Simply select the account and the option “Alert Preferences”
MY CARD RULES
This feature is located in mobile banking and connected to your debit card usage. Set up text and email alerts if your debit card is used. You can restrict your card usage to certain locations, merchant types, transaction limits or spending limits to keep your card and money safe.
This feature is found under Card Management. Select your debit card and the option “Alerts and Protections”.
KNOW YOUR OPTIONS
At HCB, you have choices on how you’d like your account to work in an overdraft situation from Overdraft Account Transfer from another account to Overdraft Privilege with the NEW OD Fee Rewind program.
OVERDRAFT PROTECTION OPTIONS
Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction. Even if you have other overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.
Frequently Asked Questions about Overdraft Privilege
HCB does authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account
- Automatic bill payments
HCB will not authorize and pay overdrafts for the following types of transactions, on personal accounts, without your consent:
- 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.
An overdrawn balance must be repaid within 35 days. HCB may not pay items under Overdraft Privilege if you do not maintain your account in good standing by bringing your account to a positive balance within every thirty-five (35) day period for a minimum of 24 hours, if you default on any loan or other obligation to Highpoint Community Bank or if your account is subject to any legal or administrative order or levy.
Any item (check, ACH, or other electronic transaction) that is initially returned to the payee because the Available Balance in your account was not sufficient to cover the item can be represented by the payee for payment multiple times, which is beyond our control. We will charge an Overdraft Item Fee or Insufficient Item Fee regardless of the number of times an item is presented to us for payment against insufficient funds, and regardless of whether we pay or return the item.
Under our standard overdraft practices:
- HCB will charge you a fee of up to $37 each time an overdraft is paid
- HCB will not charge you a fee if your account is overdrawn by less than
- There is a limit of $185 per day on the total fees that can be charged to
you for overdrawing your personal account. This limit does not apply to
If you have a personal account and you would like us to authorize and pay overdrafts, for which an overdraft fee will be assessed on ATM and everyday debit card transactions, call (269) 945-2401, or complete and submit this form. You can revoke your authorization for Highpoint Community Bank to pay these overdrafts at any time by any of the above methods. Your revocation must include both your name and your account number so that we can properly identify your account. Business accounts do not need prior authorization or consent for the bank to authorize and pay overdrafts on ATM and everyday debit card transactions.
OD Fee Rewind helps to limit your fees when you accidentally spend more money than is in your account. HCB will give you until 6:00 p.m. the following business day to bring your account to a minimum balance of -$10.00 or less, giving you more time to make a deposit and protecting you against the occasional mistake.
OD Fee Rewind comes automatically with checking accounts that have HCB overdraft privilege attached to the account. Overdraft Privilege allows the account to be overdrawn up to a certain limit. Please note that OD Fee Rewind doesn’t apply if we decide to return the transaction rather than pay the transaction. This may occur if your account is not covered by Overdraft Privilege or paying the overdraft(s) plus fees associated with the overdraft will exceed the Overdraft Privilege Limit.
Up to $74.00 (2) total in fees the day following the overdraft.
Let’s look at an example:
On Monday, you start with a $100 balance. Later that day, an incoming check for $125.00 is deducted from your account. Your balance at the end of Monday is -$25.00. A $37.00 Overdraft Fee will also be assessed against your account.
On Tuesday, your balance is -$62.00
$100.00 – $125.00 – $37.00 = -$62.00.
A deposit of at least $15.00 would be required.
Why? The bank considers the balance before the overdraft fee(s) up to $74.00 total fees and the courtesy limit of -$10.00. We don’t currently charge overdraft fee if the balance is -$10.00 or less.1
Ending Balance Fee Refund Courtesy Limit Deposit Needed
-$62.00 + $37.00 + $10.00 = $15.00
1 When the current balance at the end of the day is ($10.00) or less, the bank does not charge overdraft fees as a courtesy.
If you have opted out of Overdraft Privilege, you have elected not to let your account be overdrawn or, in other words, go into a negative balance. The bank will ‘return’ the item(s) and assess the return fee2. OD Fee Rewind doesn’t apply to accounts without Overdraft Privilege.
2 Return Fee is also referred to as an NSF or Insufficient Funds Fee.
Deposit options include cash or check deposits made in-person or through an ITM, transfers from another HCB account and mobile check deposit1. The transaction must have an effective date for the business day following the overdraft and performed by the deadline of 6:00 p.m. Deposits subject to delayed funds availability will not be included in the current balance calculation.
1 Mobile check deposits made prior to 6:00 p.m. will not appear in your current balance until night processing. Deposits made through Remote Deposit Capture are part of the calculation to determine the current balance for OD Fee Rewind.
Yes – ATM deposits can have an effective date for the business day after the deposit is made. Depending on the provider, P2P or external transfers can have a one to three day window before the transaction is credited to the account. Night deposit transactions typically are processed the next business day after the drop occurs.
You will need to cover any new transactions (like checks, ACH debits or bill pay items) that occur during the business day following the overdraft(s) and negative balance from the business day before. Remember that the negative balance to cover would not include up to 2 overdraft fees or a total of $74.00 and the courtesy limit of -$10.00. Transactions are posted to accounts throughout the day and your balance can change. You should review scheduled transactions and checks that have not cleared your account yet.
Online or Mobile Banking is the best way to determine your current balance. You can set up text2 or email balance alerts to notify you if your balance drops below a set amount. Telephone banking is another option. Remember, though, only you know your balance. Review any scheduled payments (automatic payments, bill pay items) coming from your account or any checks that are not posted to the account. Transactions are processed throughout the day and your balance may change.
2 Message and data rates may apply
Business days are Monday through Friday. Saturdays, Sundays, and certain federal holidays are not business days. So, for example, if the overdraft occurs on Friday, you have until 6.00 p.m. on Monday (the next business day) to cover the overdraft. If that Monday is a federal holiday and the bank is closed, you have until 6:00 p.m. on Tuesday.
Overdraft Privilege, or ODP, allows an account to be overdrawn up to a certain limit for a fee to pay for a transaction. OD Fee Rewind would extend the time necessary to bring your account into a positive balance to avoid fees up to a maximum of $74.00 for both personal and business accounts. For more information about ODP and other OD options, refer to the brochure “Overdraft Coverage Options: Overdraft Protection and Overdraft Privilege.”
HCB reserves the right to suspend Overdraft Privilege and OD Fee Rewind in certain circumstances as described in the brochure or if abuse of either program occurs.
Overdraft Account Transfer
Link your savings account to your checking account to help pay for any overdraft transactions that may occur. There is no fee for this service, and you’ll save money by avoiding Overdraft or NSF fees that could be charged.