Overdrafts – What they are and options to help protect yourself.
What Is an Overdraft?
An overdraft happens when you don’t have enough money in your account to pay for a transaction you’ve already made–essentially, you go over your account balance or bounce a check. Not only can this result in transactions being declined and/or returned, but your account can be charged insufficient funds and daily overdraft fees for check, in–person withdrawal, ATM withdrawal and other electronic transactions. See Personal Account Terms for all fees, conditions and terms.
Overdraft Protection Options
- Account Overdraft Protection Service – Link a coverage account (savings, money market, or secondary checking account) to your primary checking account and available funds are automatically transferred to prevent overdrafts if the balance on your primary checking account is too low1.
- Check Reserve Credit Line3 – Apply for an overdraft line of credit, and the line of credit automatically transfers available funds to cover overdrafts on your primary checking account.4
The payment of transactions into overdraft is discretionary, and Vectra Bank reserves the right not to pay. For example, Vectra Bank typically does not pay overdrafts if your account is not in good standing or you’ve had excessive overdrafts. If your account goes into the overdraft, Vectra Bank requests you immediately bring your account to a positive balance.
ATM/Debit Card Courtesy Approval
Courtesy Approval is a service that allows Vectra Bank to consider paying ATM and one–time debit card transactions that may cause an overdraft due to lack of funds in your account. This service is separate from Vectra Bank overdraft protection options. If you opt–in to Courtesy Approval, these transactions may be paid at Vectra’s discretion, which means Vectra Bank does not guarantee to always authorize and pay these transactions and fees may apply.
If you opt in to Courtesy Approval:
- Vectra Bank may pay, at its discretion, ATM and one–time debit card transactions that cause an overdraft on your account.
- If Vectra Bank pays the overdraft; you’ll be charged fees including an insufficient funds fee (NSF)1 and overdraft protection fees5. Fees are taken from your account.
If you don’t opt in to Courtesy Approval:
- Vectra Bank will decline to authorize any ATM or one–time debit card transactions that cause an overdraft on your account, and you won’t be charged fees.
You have the right to revoke Courtesy Approval authorization at any time by stopping into any Vectra Bank branch or calling us at 1–800–232–8948.
You Have Flexibility
Whatever your decision, Vectra Bank provides you with options and flexibility. You can choose to have one of these plans, or a combination for added protection. And you are able to cancel at any time.
If you would like to apply and enroll in any of our overdraft protection plans, stop in to any Vectra Bank branch, call us at: 1–800–232–8948, or log in to your Online Banking account.For consumer information about the Federal Reserve’s overdraft rules, you may visit their website at www.federalreserve.gov/bankinforeg/default.htm.
- One–time debit card transactions: Purchases made with your debit card on a
day–to–day basis (excludes all checks and automatic bill payments).
- Overdraft: An overdraft occurs when you write a check, make an ATM transaction,
use your debit card to make a purchase, or make an automatic bill payment or other
electronic payment for an amount greater than the balance in your checking account.
- Standard overdraft practices: A bank covers your transaction for a flat fee each
time you overdraw your account using a check or automatic payment.
- Overdraft protection plans: A bank may offer a line of credit or a link to another
of your deposit accounts such as savings to cover transactions when you overdraw your
primary checking account. Typically, a small fee is charged each time you utilize this
service to make a transfer to cover the overdraft amount.
- Opt in: Giving the bank permission to include you in a particular service.
- Opt out: Declining a particular service offered by your bank.
1. Insufficient Funds Fee: A daily maximum of five Insufficient Funds Fee – Item paid and/or Insufficient Funds Fee – Item returned, in any combination, may be assessed if total amount overdrawn that day is greater than $10. See account terms for all fees, conditions and terms.
2. Overdraft Service Fee: An Overdraft Service Fee will be charged beginning on the 5th day and each subsequent day your account is overdrawn by more than $10, for a maximum of 30 days per occurrence. See account terms for all fees, conditions and terms.
3. Check Reserve: Check Reserve Credit Line is subject to credit approval for all signers. Terms and conditions apply.
4. Credit Line Transfer Fee: Minimum transfer amount and fee per advance may apply. See account terms for all fees, conditions and terms.
5. Account Overdraft Protection Fee: Minimum transfer amount and fee per advance may apply. See account terms for all fees, conditions and terms.