Overdraft Protection Information
Important information about Standard Overdraft Practices and Debit Card Overdraft Assistance ("DCOA")
 | An overdraft occurs when you do not have enough money in your account to cover a transaction or item. You can decide how you would like us to handle items posted against your account that would cause an overdraft. BankAtlantic offers tools you can utilize to help reduce the occurrence of overdrafts. If used, these services and products will result in additional overdraft fees being assessed against your account. |
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What is the difference between Standard Overdraft Practices and DCOA?
Standard Overdraft Practices: Generally, if your account is eligible, you will automatically be enrolled in this overdraft service for your checks, ACH transactions, and recurring debits such as debit card purchases that are set up to bill automatically (i.e., a gym membership). Eligibility is based on deposit history, length of time account has been open, maintaining your account in good standing, and you must not be in default on any loan obligation to us. See Depositor’s Agreement for eligibility requirements. You can opt-out of this overdraft service by contacting us.
Debit Card Overdraft Assistance (DCOA): Upon your affirmative election and confirmation from us, you will be enrolled in this overdraft service for your ATM and one-time debit card transactions. You must also be eligible for the Standard Overdraft Practices in order to receive this service.
What do you need to know about Standard Overdraft Practices and DCOA?
• Avoid using these plans as short-term loans – they are costly forms of credit.
• If you overdraw your account, get money back into your account as soon as possible. You must bring your account to a positive end-of-day balance as soon as possible. If you fail to bring your account to a positive end-of-day balance within 45 calendar days, your account will be closed and we may report you to credit reporting agencies.
• Even if you have one of these overdraft plans, there is no guarantee that we will cover any item that overdraws your account.
• Good account management is the lowest cost and most efficient way to protect your hard earned money.
How do overdrafts happen?
An overdraft means that your account balance, minus deposits that are not yet available and minus holds on your account (i.e., pre-authorized holds, etc.), is negative or is less than the total amount of items posted and paid on a business day. We batch process all items at the end of the business day and post the transactions to your account in the order as provided by your Personal Account Depositor’s Agreement and Disclosure Statements, as amended from time to time. An overdraft occurs when you do not have enough money in your account to cover a transaction or item.
• For example, when you write a check or use your debit card to make a purchase for more than the amount in your checking account, you overdraw your account.
Generally, unless you have specifically instructed us otherwise, we have the choice to either pay the item or not, even though you don’t have the money in your account.
How does the Bank post items to your account?
When processing items for your account, at the end of the business day, it is our policy to post the transactions to your account in the following order: (i) ATM and debit card transactions based on time of authorization, time of settlement, or time of receipt; (ii) cash-type items, such as teller withdrawals, outgoing wires, and on-us checks; (iii) ACH transactions; (iv) checks by ascending check serial number; and (v) most bank service charges and fees. This policy may increase the occurrence of overdrafts depending on the dollar amount of the item.
• For example, if the following three transactions occur in the following order: $10.00 ACH item, and $30.00 check item and $50.00 wire item; we will post and pay them in the following order: $50.00 item, $10.00 item, and $30.00 item. Note, your ATM and one-time debit card transactions will be posted based on the time of authorization, time of settlement, or time of receipt.
What overdraft fees may be imposed?¹
Generally, we will charge a fee for any item posted against insufficient funds, whether or not we pay the item. We will not charge any insufficient available funds (NSF), uncollected/unavailable funds (UAF), or sustained overdraft (SO) fees if you are overdrawn by $5.00 or less at the end of the business day. We will limit the total number of NSF and UAF fees to five (5) per business day. If your available account balance remains overdrawn for 6 consecutive calendar days, you will incur a SO fee of $8 per business day until the account is brought to a positive available balance. We will impose a SO fee on the sixth calendar day if that day is a business day and we will impose a SO fee every business day thereafter on which you are overdrawn at the close of business.
Example: Suppose you forgot that you had only $15 in your checking account and you wrote a check for $25, used an ATM to get $40 cash and used your debit card to buy $30 worth of groceries, all of which were batch processed on the same day. In these transactions you’ve spent a total of $95 and have overdrawn your checking account by $80 ($95 - $15 = $80).
What will this oversight cost you?
Scenario 1 (Standard Overdraft Practices with an affirmative opt-in to DCOA) – If we decide to cover all 3 of the transactions, each will trigger a fee. You will owe us the $80 that you spent (even though it wasn’t in your account), plus the 3 overdraft fees. If the overdraft fee is $35 per overdraft, you will owe us $185 ($80 + 3 x $35).
Scenario 2 (Standard Overdraft Practices without DCOA) – Both the ATM transaction of $40 and the debit card purchase of $30 would have been declined. We may decide, in our discretion, to cover the check written for $25. If we do cover this check, you will owe us $45 (the $10 that overdrew the account + the $35 overdraft fee). If we do not cover this check, you will owe us a returned item fee of $35.00.
How can you avoid overdraft fees?
The best way to avoid overdraft fees is to manage your account responsibly and make sure your account balance is positive.
You should try not to overdraw the account.
• Keep track of how much money you have in your account by keeping track of your transactions and spending. Record all checks when you write them and other transactions when you make them, including debit card preauthorized holds. Also, don’t forget to subtract bank fees.
• Pay special attention to your electronic transactions. Record your ATM withdrawals and fees, debit card purchases, and online payments.
• Don’t forget about automatic bill payments you may have set up for utilities, insurance or loan payments.
• Keep an eye on your account balance. Remember that some checks and automatic payments may not have cleared yet.
• Review your account statements each month. Between statements, you can find out which payments have cleared and check your balance by calling, using online banking, using mobile phone alerts, or doing a balance inquiry at an ATM. Be sure to note the actual amount available in your account the true “available” balance, which includes only those funds cleared and available for use. Funds on hold due to a deposit hold or a preauthorized hold from a vendor are not “available” funds.
For further information regarding the handling of overdraft fees, please visit www.federalreserve.gov/pubs/bounce/.
For information regarding access to free or low-cost financial education workshops or choosing a credit counselor, please visit www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm.
How do you cancel Standard Overdraft Practices and/or DCOA for your account?
If you would like to have either or both of these services removed from your account, please visit one of our branches or call 1-888-7-DAY-BANK and inform an associate that you desire to opt-out of either or both services.
What are some other ways to cover overdrafts?
There are ways of covering overdrafts that may be less expensive. Consider all of the options before making your choice. Overall, the costs for alternative overdraft solutions may be less than the costs for Standard Overdraft Practices and DCOA. See the chart for some additional overdraft coverage options. For example you may be able to:
• Link your checking account to a savings account – If you overdraw your checking account, the bank can transfer funds from your savings account to your checking account. You will pay a transfer fee.
• Set up an overdraft line of credit – If approved, your line of credit can cover the overdraft up to the credit limit. You will pay interest on this line of credit, and a transfer fee for each day a transfer from the line of credit occurs.
• Other methods not mentioned in the chart include a linked Home Equity Line of Credit or a linked personal line of credit. These line of credits are subject to credit approval. Please ask us for more details. You may not combine a line of credit with our Standard Overdraft Practices and/or DCOA.
1. Fees are subject to change. Please consult a BankAtlantic Associate for a current Schedule of Charges. Fees current as of August 29, 2011.
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