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Frequently Asked Questions
Select a question below and click for answer.
Beginning this summer, new federal regulations will change the way banks handle
overdrafts that occur when consumers use debit cards to make everyday purchases
or ATM withdrawals that exceed the balance available in their accounts. Business
accounts are not impacted by the change.
What is an overdraft?
An overdraft occurs when you do not have enough money in your account to cover a
payment you have authorized.
What is changing under new federal banking rules regarding
overdraft fees?
Under the new rules, you must provide your permission for overdraft fees to apply
to everyday debit card and ATM transactions. These new rules are effective on July
1, 2010 for new accounts and August 15, 2010 for existing accounts.
What kinds of transactions are included in the overdraft
changes for debit card and ATM usage?
This change applies to everyday or one-time debit card transactions as well as withdrawals
made through ATMs. An everyday debit card transaction is a one-time, non-recurring
purchase or payment made with your debit card. Examples of this include purchasing
gas, groceries, or other everyday items with your debit card.
Does this change apply to checks or recurring payments
from my account?
No, the new regulation only applies to ATM and everyday debit card transactions.
Automatic bill payments (such as gym memberships or utilities that draft automatically
from your debit card), checks and other transactions made using your checking account
number are not affected by these new rules. We may authorize and pay overdrafts
on these transactions and a $40 overdraft fee per transaction may be incurred. Susquehanna
Bank pays overdrafts at our discretion, which means that we do not guarantee that
we will always authorize and pay any type of transaction.
Do these new Federal Reserve rules regarding overdraft
fees apply only to my accounts at Susquehanna Bank?
No. Every bank is affected by the new Federal Regulation.
How could this impact me?
If you have not authorized us to assess overdraft fees for ATM and debit card transactions,
those transactions would generally be declined if you do not have sufficient funds
in your account. For example, if you went to the grocery store and attempted to
pay using your debit card without sufficient funds available in the account, your
transaction would be declined.
If I provide my consent for the bank to continue standard
overdraft practices, what does that mean?
It means you give Susquehanna Bank permission, if it chooses to do so, to pay ATM
and everyday debit card transactions in excess of your balance and charge you a
$40 fee per overdraft.
If I provide my consent for the bank to continue standard
overdraft practices will the bank always pay my ATM and everyday debit card transactions?
No. Susquehanna Bank does not guarantee that your ATM and everyday debit card transaction
will be paid even if you provide your permission. These standard overdraft practices
are an accommodation provided at the bank’s discretion.
If I do NOT provide my consent to the bank to continue
its standard overdraft practices, does it mean that I will never overdraw my account
using my debit card for ATM and everyday transactions?
No. There are limited circumstances when it will not be possible for the bank to
avoid paying an ATM or other debit card transaction you made, even if there is not
enough money in your account. You should not assume that because the ATM or other
debit card transaction goes through that there is enough money in your account to
cover it. In these cases, the bank may not charge you an overdraft fee, but you
still must re-pay the bank to cover the overdraft.
When do I need to notify Susquehanna Bank if I want
the bank to continue its standard overdraft review practices for everyday debit
card transactions and ATM withdrawals that overdraw my account?
After you review the Susquehanna Bank
What You Need to Know about Overdrafts and Overdraft Fees, you may notify Susquehanna
Bank any time. Once you notify Susquehanna Bank your decision will become effective
after we confirm receipt of your notice.
For accounts opened prior to July 1, 2010, if Susquehanna Bank does not receive
your consent by August 15, 2010, Susquehanna Bank will generally no longer authorize
and pay everyday debit card transactions and ATM withdrawals that overdraw your
account. If you open your account on or after July 1, 2010, your decision is effective
after we confirm receipt of your notice. Whether you consent to overdraft fees for
everyday debit card transactions and ATM withdrawals or not, you can change your
decision at any time by notifying Susquehanna Bank.
How can I notify Susquehanna Bank that I want the bank
to continue its standard overdraft practices for everyday debit card transactions
and ATM?
You may notify us by:
If I have a joint checking account, do we both need
to provide our consent?
No. Any owner may provide consent. The authorization applies to the account, not
the individual.
Is there a deadline to provide
my consent?
Customers who do not choose to authorize us to continue standard overdraft practices
and charge overdraft fees by August 15, 2010 will generally not have ATM and one
time debit transactions that would overdraw their accounts paid. You can provide
authorization now or at any time.
Can I change my decision to continue this service?
Yes. You can change your decision at any time.
How can I avoid overdraft fees?
The best way to avoid overdraft fees is to closely monitor your account and keep
accurate records of your transactions. You can do this by keeping a check register
(available at any Susquehanna Bank office) and listing all of your deposits and
withdrawals (checks, ATM and debit card transactions, bill payments and other withdrawals).
Susquehanna Bank also provides a variety of free resources to help you monitor your
spending including Online Banking, Mobile Banking, and Direct Dial (800.311.3182).
What is the difference between standard overdraft practices
and Overdraft Protection?
Standard overdraft practices refers to the bank’s discretionary decision making
process regarding paying or authorizing transactions which would overdraw an account.
Overdraft protection plans refer to the option of linking a checking account to
other Susquehanna Bank deposit accounts or lines of credit to cover overdrafts.
Does Susquehanna Bank offer overdraft protection plans?
A variety of overdraft protection options are available to you. These include linking
your checking account to a Susquehanna Bank savings, money market, another checking
account or line of credit. If you request a transaction which would overdraw your
checking account, an automatic transfer is made to cover the transaction and any
fee, up to your available balance or credit limit. Transfer fees of $10 may apply,
and are less than the standard $40 overdraft fee.
If I have one of the above overdraft protection plans
linked to my checking account, do I still need to decide whether or not to instruct
Susquehanna Bank to consider authorizing and paying everyday debit card transactions
and ATM withdrawals that overdraw my account?
Yes. Even with an overdraft protection plan linked to your checking account, it
is possible that you might not have enough funds or credit available to cover an
everyday debit card transaction or ATM withdrawal. In that event, the transaction
could be denied. If you have instructed Susquehanna Bank to consider authorizing
and paying these items on your behalf, you may still be able to complete your transaction.
If I don’t currently use an ATM or Debit Card, do I
need to provide my consent?
Technically not, but we recommend that you go ahead and provide consent now just
in case you decide to become an ATM/Debit customer in the future.
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Additional Resources
MORE INFORMATION
- For more information, call or stop by an office today.
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