What You Need To Know About Overdrafts & Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction. This can happen in several ways:
- Writing a check;
- Authorizing an automatic payment from the checking account to pay for recurring expenses such as utility bills, mortgage payments, gym memberships, etc.;
- Paying for purchases with a debit card;
- Making withdrawals from an automated teller machine (ATM).
Any item posted as a debit to your account can result in an overdraft, and all such items are treated the same with regard to the action described in this document. In other words, overdraft actions and charges do not apply only to paper checks, but to all debit transactions.
We may, at our discretion, honor transactions that overdraw your account, or we may decide to return the items, also called insufficient funds (NSF) items, to the payee. In either case, you will be charged an overdraft or NSF fee of $30.00 for each item. Even if we do decide to pay an overdraft item, we are not obligated to pay overdrafts that occur at a later date. The payment of overdrafts is never guaranteed.
Regardless of our decision to pay or return the overdraft item, you will receive a notice that the overdraft occurred, how the item(s) were handled, the amount of the fee you were charged, and your account balance. If our final decision on the item(s) caused your account to become overdrawn, you should make a deposit as soon as possible to bring your account to a positive balance.
What is a De minimis Transaction?
If your transaction creates an overdraft of $10.00 or less, we will not charge a fee for the item. You will receive a notification of such transactions as described earlier in this document.
What is the posting order of items?
The law permits us to pay items (such as checks, drafts or ACH) drawn on your account in any order. To assist you in handling your account with us, we are providing you with the following information regarding how we process the transactions presented. When processing items drawn on your account, our policy is to pay POS and ATM transactions first, which are processed in the order received. Then ACH and checks are processed. If an item contains a serial number (ie: check) the lowest serial number items are paid first so we are processing your items in the order in which you issued them. If an item does not contain a serial number, it is paid in the order presented to us. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest and perhaps more important items (such as rent or mortgage payments) might not be paid. If an item is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item (NSF). The amounts of the overdraft and NSF fees are disclosed elsewhere. By paying items in numerical sequence, we think our policy attains reasonable balance. We encourage you to make careful records and practice good account management. This will help you to avoid writing checks or drafts without sufficient funds and incurring the resulting fees.
When you check your account balance, there may be outstanding items that have not yet posted due to processing delays which occur in the ordinary course of business. If you do not reconcile your account balance on a periodic basis and have a good understanding of the approximate balance you should have, you may inadvertently overdraw your account if you rely solely on balance inquiries from the ATM, online banking or a bank teller. We encourage you to make careful records and practice good account management. This will help you to avoid writing checks or making other payments without sufficient funds and incurring the resulting fees.
What are my overdraft options?
We can cover your overdrafts in several different ways:
- Auto Transfer Plans: Such as a link to a savings account. This may be less expensive than our Occasional Overdraft Service. To learn more, ask about these plans
- Community Credit Line: Available to qualified customers through the application process
- Occasional Overdraft Service
What Is The Occasional Overdraft Service?
The Occasional Overdraft Service is a discretionary courtesy or service and not a right of yours nor an obligation on our part – approving your reasonable overdrafts on an eligible account. This service is for the occasional overdraft. This discretionary service will generally be limited to a $700 overdraft (negative) balance for all Personal Checking Accounts, or a $1,000 overdraft (negative) balance for eligible checking accounts held by a Sole Proprietorship.
To be considered an eligible account, your checking account must be open for at least thirty (30) days and thereafter you must maintain your account in good standing, which includes at least: (A) Continuing to make deposits consistent with your past practices, and depositing at least $300 or more in your account within each thirty (30) day period, (B) You are not in default on any loan obligation to Central Valley Community Bank, (C) You bring your account to a positive balance (not overdrawn) at least once every thirty (30) days, and (D) Your account is not the subject of any legal or administrative order or levy.
Eligible account types include:
- Simplicity Checking
- Secure Checking
- Protection Plus Checking
- Relationship Interest Checking
- Sole Proprietorship Checking
We may authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account
- Automatic bill payments
We do not authorize and pay overdrafts for the following types of transactions unless you Opt-In (see below):
- One time debit card transactions (non-recurring transactions)
- ATM Transactions
We pay overdrafts at our discretion and do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize your transaction, it will be declined.
What Fees Will CVCB Charge If I Overdraw My Account?
- We will charge a fee of $30.00 each time an item is presented such as, Checks, ATM, Point of Sale, or an Automatic withdrawal.
- The maximum amount you may be charged on a consumer account per day is $180.00
- The maximum amount you may be charged on a non consumer account per day is $240.00
What If I Want CVCB To Authorize And Pay Overdrafts On My One-Time Debit Or ATM Transactions?
If you want us to authorize and pay overdrafts on one-time debit card (transactions where you swipe your debit card for services or merchandise such as groceries, pharmacy supplies, or auto parts) or ATM transactions you must complete the required Overdraft Coverage form online and send by email or visit any local branch.
How Do I Cancel My Previous Authorization To Pay Overdrafts On ATM And One-Time Debit Card Transactions?
If you wish to cancel your authorization to pay overdrafts on one-time debit card or ATM transactions you can complete the required Overdraft Coverage (see below) and return by email or visit any local branch.
Your OOS coverage will continue on your checks and automatic bill payments, regardless of what you have elected for your debit or ATM card transactions.
How Do I Opt Out Of The Occasional Overdraft Service (OOS)?
To discontinue or opt out of the Occasional Overdraft Service (OOS) on your eligible Checking account, please contact your local branch or Customer Service at the address and phone numbers listed below. By opting out of the OOS, your checks, drafts, ACH items, ATM withdrawals, and one time debit card transactions will be automatically returned if presented against non-sufficient funds. A non-sufficient funds fee will be applied.
Central Valley Community Bank
7100 N. Financial Drive, Ste. 101
Fresno, CA 93720
Email us at email@example.com
Financial Education and Counseling: If you are facing financial challenges and are unable to manage your account effectively, you may want to consider accessing free or low-cost financial education workshops or individualized financial counseling. Educational resources are listed below:
- United States Government Federal Trade Commission
- United States Government Federal Deposit Insurance Corporation
- United Way
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