Overdraft Coverage Options: Overdraft Privilege and Overdraft Protection
Overdraft Coverage Options:
Overdraft Privilege and Overdraft Protection
Overdraft Coverage Options
The choice is yours. Consider these ways to cover overdrafts:
|Overdraft Protection Link to a Savings Account you have at C&N 1||$3 fee per transfer|
|Overdraft Protection Link to a Ready Cash Line of Credit you have at C&N 1, 2||$3 fee per transfer and/or finance charge|
|Overdraft Privilege||$35 Overdraft Fee per item.|
|1 Call us at 877-838-2517 or come by a branch to sign up or apply for these services
2 Subject to credit approval.
Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your Checking account from your linked Savings account for a $3 fee per transfer, or Ready Cash line of credit you may have at C&N for a $3 fee per transfer and/or finance charge. Please note that Ready Cash lines of credit are subject to credit approval.
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 overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please review the “What Else You Should Know About Overdraft Privilege” disclosure below for other important information. Overdraft privilege limits are established by account type. You can identify your account type by reviewing your Truth-In-Savings Disclosure or you will find it listed in the Statement Summary section on your most recent account statement.
|$1,000 ODP Limit||$750 ODP Limit||$600 ODP Limit|
|Transactions Covered with Overdraft Privilege||Standard Coverage (No action required)||Extended Coverage(Your consent required*|
|ACH - Automatic Debits||X||X|
|Recurring Debit Card Payments||X||X|
|Online Bill Pay Items||X||X|
|Teller Window Transactions||X||X|
|Everyday Debit Card Transactions||X*|
|*If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage.|
What Else You Should Know About Overdraft Privilege
- A link to a savings account or a ready cash line of credit with Citizens & Northern Bank may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. The transfer would occur in $50 increments. Use our mobile banking, online banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.
- The $35 Overdraft Item Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Paid Overdraft Item Fee or a Returned Overdraft Item Fee of $35. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
- If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, Citizens & Northern Bank will charge a Return Overdraft Item Fee each time it returns the item because it exceeds the available balance in your account. If, on representment of the item, the available balance in your account is sufficient to cover the item Citizens & Northern Bank may pay the item, and, if payment causes an overdraft, charge a Paid Overdraft Item Fee.
- For consumer accounts, there is a limit of ($210) per day on the total fees we can charge you for overdrawing your account. These combined fees include the overdraft fee (paid/returned), and the uncollected funds fee. This limit does not apply to business accounts.
- The order in which transactions are received by C&N could differ from the order in which they occurred, and when processed can affect the total amount of overdraft fees incurred. Our general policy is to post Force-paid items from prior day processing, posted in time-stamp order, Cash W/D from ATM – time stamp order, POS W/D – time stamp order, Cashed checks – time stamp order, Auto Debit/automatic transfer, IB Billpay ACH Debits, ACH Debits, Checks – serial number order, and then Fees & Other misc. items. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Item Fees or Returned Item Fees assessed.
- Although under payment system rules, Citizens & Northern Bank may be obligated to pay some unauthorized debit card transactions, Citizens & Northern Bank will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fees (if applicable).
- If you consent to Extended Coverage you give us consent to pay everyday debit card and ATM overdrafts on your consumer account. These transactions may result in you incurring Overdraft Item Fees for these transactions. If you consent to Extended Coverage on your consumer account, it will remain on your account until you otherwise withdraw it or the Bank revokes it.
- Citizens & Northern Bank authorizes and pays transactions using the available balance in your account. Citizens & Northern Bank may place a hold on deposited funds in accordance with our Expedited Funds Availability Disclosure, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available overdraft protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available overdraft protection, but does NOT include the Overdraft Privilege Limit. For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for authorizing ATM and everyday debit card transactions.
- Please be aware that the Overdraft Privilege amount is not included in your available balance provided through online banking, mobile banking or Citizens & Northern Bank’s ATMs.
- Citizens & Northern Bank will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Item Fee may be assessed.
- Except as described herein, Citizens & Northern Bank may not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
- Citizens & Northern Bank may suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated.
- If your debit card is suspended, you will be unable to use your debit card for purchases or to access your account at the ATM, and if you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
- An Overdraft Privilege limits of $600, $750 or $1,000 is available for eligible consumer account types at account opening. An Overdraft Privilege limit up to $1,000 is available for eligible business account types at account opening.
- Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice. Any discretionary payment by Citizens & Northern Bank of an overdraft check (or item) does not obligate Citizens & Northern Bank to pay any other overdraft check (or item), or to provide notice of its decision to refuse to pay such check (or item).
- Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 30 days for a period of 24 hours. You must bring your account balance positive for at least 24 hours to have Overdraft Privilege reinstated.
- Your account may be closed if the balance is not brought positive within 60 days of the date it became overdrawn. Should your account be closed for insufficient funds activity or other negative reasons, it may be reported to Transworld Systems, Inc for collection and we may also report the information to one or more consumer reporting agencies.
- Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Terms and Conditions. The total (negative) balance, including all fees and charges, is due and payable upon demand. The Deposit Account Terms and Conditions (and all amendments thereto) and Truth-In-Savings Disclosure shall control any possible conflict, if any, between any provision of this document and the Deposit Account Terms and Conditions or Truth-In-Savings Disclosure. A copy of these Account Disclosures is available to you upon request at any Citizens & Northern Bank office.
What You Need to Know About Overdrafts and Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:
- We have standard overdraft practices that come with your account.
- We also offer overdraft protection plans, such as a link to a Savings account or a ready cash line of credit, which may be less costly than our standard overdraft practices. To learn more, ask us about these plans.
This notice explains our standard overdraft practices.
What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your Checking account number
- Automatic bill payments
We will not authorize and pay overdrafts for the following types of transactions 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.
What fees will I be charged if C&N pays my overdraft?
Under our standard overdraft practices:
- We may charge you a fee of up to $35 each time we pay an overdraft
- There is a limit of $210 per day on the total fees we can charge you for overdrawing your account
What if I want C&N to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call 877-838-2517, visit any branch to fill out a form, or take a form home and mail it to: PO Box 58 Wellsboro, PA 16901. You can revoke your authorization for C&N 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.