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Overdraft "Opt-In" for One-Time Debit Card & ATM Transactions
FREQUENTLY ASKED QUESTIONS |
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| MORE OVERDRAFT COVERAGE RESOURCES |
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Recent revisions to Federal Law governing bank overdraft practices give customers the option of deciding if they want the
bank to cover overdrafts generated by one-time debit card and ATM transactions. If a customer 'opts-in', the overdraft
coverage for their one-time debit card and ATM transactions will enable a transaction to be completed even if the account
balance is insufficient. An overdraft transaction will be subject to a standard NSF fee. If a customer does not 'opt-in', the
bank will decline one-time debit card and ATM transactions when the account balance is insufficient.
Q2. What kind of transactions are impacted by the 'opt-in' rules?
All one-time ('everyday') debit card and ATM transactions are impacted by the 'opt-in' rule. Overdraft coverage for these
types of transactions requires you to 'opt-in' (agree) in advance. Recurring debit card payments (eg: your mortgage
payment set up to pay monthly via online bill-pay) and checks or ACH transactions are not affected by the new 'opt-in'
rule. These transactions may still be covered (paid) by the bank's standard overdraft practices when your balance is
insufficient.
Q3. Why is the Federal Government requiring customers to 'opt-in'?
These rules were defined to help consumers control overdrafts in their accounts and reduce the related expenses– especially for small transactions created by debit card purchases.
Q4. Why do I have to authorize overdraft coverage for debit and ATM transactions?
The rules specifically require that customers tell the bank if they want this type of overdraft coverage. Customer accounts
will default to 'opt-out' status for debit and ATM transactions unless a customer completes an election form and opts-in.
Q5. What will happen if I do not 'opt-in'?
If you do not 'opt-in' -- Federal Law requires the bank decline your one-time debit card and ATM transactions when the
balance in your account is not sufficient to cover them. Customer accounts will default to 'opt-out' status for debit and
ATM transactions unless a customer completes an election form and "opts-in".
Q6. How do I 'opt-in' or 'opt-out'?
There are several ways for you to make an election regarding overdraft coverage:
1) Call Customer Service; they can send you an 'opt-in' authorization form which you can mail/fax back to us.
2) Log-on to www.CitywideBanks.com and submit the authorization form online
3) Stop in at any of our branch locations to complete an 'opt-in' form.
Q7. If I have Bounce Protection Overdraft Privilege linked to my account do I still need to 'opt-in'?
Yes. The Citywide Banks Bounce Protection Overdraft Privilege coverage does not apply to one-time debit card and ATM
transactions unless you 'opt-in'. Your Bounce Protection Overdraft Privilege coverage will still apply to debits created via
check, ACH and recurring debit transactions.
Q8. If I 'opt-in' will my debit card purchases and payments always go through?
No. Whether an overdraft will be paid is discretionary and we reserve the right not to pay. This means we do not
guarantee that we will always authorize and pay any type of transaction.
Q9. Are there fees?
Yes. You will pay a $33 fee each time a debit card or ATM transaction is approved and paid when you don't have
sufficient funds in your account at the end of the day. There is no fee for Bounce Protection Overdraft Privilege if you
don't use it. And in most cases, there is no fee if you accidentally overspend with your debit card, but you make a deposit
or transfer money that same business day to cover the cost of your purchase or payment. Citywide Banks will pay and
NOT charge you for insufficient fund transactions if the overdraft balance remains below $10.00 at day-end regardless of
the transaction type and regardless of whether you have chosen to 'opt-in' or not.
Q10. When do I need to make my deposit to avoid an overdraft fee?
You will have until the end of the business day of your transaction to make your deposit. If your debit transactions occur
on a non-business day, you will have until the end of the next business day.
Q11. What about automatic debit card payments that I set up with a merchant?
Debit card purchases or payments that are set up to bill automatically (like a gym membership) may continue to be
authorized at our discretion even if you do not 'opt-in'.
Q12. What if I can't decide or don't want this service?
We're happy to talk with you about options for managing your account. Visit a Banker or call Customer Service to discuss
Citywide Banks' Bounce Protection Overdraft Privilege and the new 'opt-in' rules. If you're certain that you don't want
your everyday debit card and ATM transactions authorized when you don't have sufficient funds, you do not need to take
any action. Your account will default to 'opt-out' if you do not submit an 'opt-in' form.
Q13. What if I change my mind about 'opt-in' later?
You always have the right to reverse your 'opt-in' decision or activate 'opt-in' at a later date. There are several ways for
you to make an election regarding overdraft coverage:
1) Call Customer Service; they can send you an 'opt-in' authorization form which you can mail/fax back to us.
2) Log-on to www.CitywideBanks.com and submit the authorization form online
3) Stop in at any of our branch locations to complete an 'opt-in' form.
Q14. What other options do I have for managing overdrafts within my accounts?
Citywide Banks offers an overdraft line of credit called Ready Resource. You can set up an automatic transfer from your
savings account to your checking account via online banking and you can also sign up for helpful email-alerts to keep you
informed when your balance is low or your account is overdrawn.
Q15. What if I am having trouble repaying my Bounce Protection or use it frequently?
Please contact us at (303)-365-3650 if:
(1) you do not believe you will be able to bring your account to a positive end-of-day balance within the required time period;
(2) find that you are using Bounce Protection more often than you intend; or
(3) don't understand why your account becomes overdrawn. We would like to discuss your situation with you.
Following regulatory guidance, we will contact you if you are paying multiple NSF Fees (i.e., more than six fees in a rolling 12-month period), to discuss possible alternatives to Bounce Protection that may better meet your short term credit needs. In the event you ask us to stop contacting you because you have determined Bounce Protection is appropriate for your needs, we will honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure Bounce Protection is still the most appropriate option available to you for covering your short term credit needs.
For additional Information:
Citywide Banks Customer Service
303-365-3650
8am – 5pm Monday - Friday
Customers will be charged our standard NSF Fee of $33 for each item overdrawn which may be charged for overdrafts created by check, in-person withdrawal, an automatic payment (ACH) transaction, or a recurring debit card payment, or other electronic transaction. Also, if you have requested us to do so, we may authorize and cover ATM transfers or withdrawals and every day debit card transactions.
NSF Fees for overdrafts covered via Bounce Protection Overdraft Privilege are limited to 3 per day and a maximum fee of $99 per day. There is no daily NSF Fee limit for overdraft items returned unpaid or those paid outside of Bounce Protection Overdraft Privilege. NSF Fees are not charged for items that overdraw the account less than $10.00.
You should make every attempt to bring your account to a positive balance as soon as possible, and must do so within 30 days.
Whether an overdraft will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing or you are not making regular deposits or you have too many overdrafts. |
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