Farmers Bank Overdraft Services Frequently Asked Questions
How do you handle an item presented for withdrawal on my account when there are insufficient funds to cover the transaction?
- A non-sufficient fund item (NSF item) is a transaction on your account where the amount of the transaction is greater than the available balance in your account. If an NSF item is presented on your account, we strive to pay your overdrawn item in accordance with our Overdraft Services.
Standard Discretionary Overdraft Service
What is your Standard Discretionary Overdraft Service?
- Courtesy Select is a discretionary, non-contractual courtesy, where we strive to pay your overdrawn items and charge our standard NSF/OD fee of $35.00 for each item overdrawn up to five (5) daily for consumer accounts. This service is a discretionary courtesy and may be withdrawn at any time. Our payment of your NSF item is NOT guaranteed.
What types of transactions are covered?
We extend Courtesy Select automatically to eligible accounts for the following types of transactions.
- Automatic Bill Payments
- Telephone-initiated transfers or other electronic transfers
- Preauthorized automatic debits
- ATM withdrawals and transfers (included for business accounts, consumer accounts must opt in)
- Everyday Debit Card Purchases (included for business accounts, consumer accounts must opt in)
For consumer accounts, Courtesy Select PLUS may also be extended to cover to the following types of transactions, if you provide us your consent to do so. See Reg E for more information.
- ATM withdrawals and transfers
- Everyday Debit Card Purchases
How will Courtesy Select PLUS benefit me?
- In the event something unexpected happens where your account does not have the available funds to cover your checks, ATM withdrawals, debit card transactions, preauthorized automatic debits, telephone-initiated transfers or other electronic transactions, our overdraft services may help you avoid the embarrassment and costs of returned items.
Are my ATM and everyday Debit Card transactions included in the Courtesy Select?
- We must have your authorization on file before setting up the service for ATM and everyday Debit Card transactions. There is no additional charge to activate this service for your ATM and everyday Debit Card transactions. Please contact your local branch or call us at (757) 242-6111. You may also authorize this service by clicking this link.
Is Courtesy Select a line of credit or a loan?
- Courtesy Select is not a line of credit or a loan. As a non-contractual courtesy, we will strive to pay your overdrafts based on your account performance, which includes your past deposit history, the age of your account and how quickly you have repaid any overdrawn items in the past. This service may be withdrawn at any time.
Do I have to apply for Courtesy Select?
- No. This service is automatically included for checking accounts that meet our requirements and are in good standing.
How will I know I am overdrawn?
- We will mail you a letter to notify you each time there is a non-sufficient fund item processed on your account. To help manage your account, you can choose to receive email or text message alerts when your account drops below a certain balance or when you have an overdraft. Login to Online Banking to set up your account alerts.
How quickly do I have to deposit funds to cover an overdraft?
- Your account agreement states that you are required to deposit funds immediately to cover any overdrafts. If your account has a negative balance for more than 45 days, and you do not contact us or deposit funds, your account will be closed and reported to a consumer reporting and/or collection agency.
Can I opt-out of the Courtesy Select PLUS for my ATM and everyday Debit Card transactions at any time?
- Yes, if you do not wish to have your ATM and everyday Debit Card purchases included under this policy and would prefer to have these types of non-sufficient fund items returned/and or denied, please call (757) 242-6111.
Can I opt-out of the Courtesy Select for all NSF transactions?
- Yes, if you do not wish to have your NSF items paid under this policy and would prefer to have all of your non-sufficient fund items returned and/or denied, please call (757) 242-6111.
Overdraft Protection Products
Transfers from Farmers Bank Accounts
- Arrangements can be made to automatically transfer funds from one of your other accounts with Farmers Bank to an account that has an NSF item for a transfer fee of $10.00 per transfer. This service must be set up in advance of an NSF item posting to the account. Please speak to your customer service representative about designating which accounts you would like transfers to come to and from.
Chequeline Overdraft Protection Line of Credit
- An overdraft line of credit requires a contractual loan agreement to be signed and is available to qualifying accountholders. NSF items are covered up to the value of the overdraft line of credit for a transfer fee of $10.00 per transfer. Interest is charged on the outstanding balance of the line of credit. Payments of interest and outstanding principal are required to be made monthly. For more information contact a customer service representative.
Regulation E Questions & Answers
Why doesn’t Courtesy Select automatically include all types of transactions for consumer accounts?
- Under changes made to Regulation E for consumer accounts, we will not intentionally pay your ATM and everyday (one-time) debit card transaction that overdraw your account without your permission. You must consent to having us pay your ATM and everyday (one-time) debit card transactions that overdraw your account for which you will incur our standard overdraft fee of $35.00 per item up to five (5) items daily for consumer accounts.
What will happen if I do not consent to having any ATM and everyday (one-time) debit card transactions authorized using Courtesy Select PLUS?
- Your ATM and everyday (one-time) debit card transactions will be declined in the event of an overdraft, unless you have other Overdraft Protection services. Courtesy Select will continue to be in effect for your checks and automatic bank payments.
What if I already have an Overdraft Protection Transfer service
- Your current Overdraft Protection Transfer account will continue to function the same way as it does today.
If I already have Overdraft Protection on my checking account (through a link to a secondary account), can I also opt-in to have my ATM and everyday debit card transactions included as part of Courtesy Select PLUS.
- Your Overdraft Protection Transfer allows us to automatically transfer available funds to your checking account to cover any overdraft on your account. However, if you do not have enough available funds in your Overdraft Protection Transfer account to cover your ATM and everyday (one-time) debit card transfer purchases, they will be declined. Choosing to opt-in to have your ATM and everyday (one-time) debit card transactions included as part of our Standard Discretionary Overdraft Service could provide an additional layer of coverage in the event you exhaust your Overdraft Protection Transfer funds.
I would never spend more money than I have, so why would I want to opt in to have my ATM and everyday (one-time) debit card transactions included as part of Courtesy Select PLUS.
- Unfortunately, people slip up from time to time, so the occasional overdraft can happen and we want to try to pay those transactions. If it happens, opting in may allow your ATM withdrawals and everyday (one-time) debit card purchases to be accepted, which saves you the humiliation of being declined or leaving you in a position where you may be unable to complete a transaction for an urgent purchase.
If I opt in to have any ATM and everyday debit card transactions included as a part of Courtesy Select PLUS, will they always be authorized regardless of available funds?
- No, the bank has the discretion to approve or decline a transaction that causes an account to become overdrawn. It is our policy to strive to pay all overdraft items when possible.
What fees are associated with overdrawing my account?
- You will be charged a $35.00 fee each time we pay an overdraft, up to five (5) per day for consumer accounts. You may also be assessed additional fees if your account remains overdrawn.
Is it true that the bank can never charge me an overdraft fee if I don’t opt in to have my ATM and everyday debit card transactions included as part of Courtesy Select PLUS?
- No, the changes made to Regulation E only apply to ATM and everyday (one-time) debit card transactions. Items such as checks, ACH transactions and recurring debit card transactions are handled under our Courtesy Select. When you do not have sufficient available funds to cover these types of items, the bank, at its discretion, may pay or return the item(s) resulting in an overdraft fee(s).
How are automatic or recurring payments I have set up on my debit card handled?
- The changes made to Regulation E do not affect the way we process overdrafts on recurring debit card transactions, checks and other transactions made using your checking account. We will continue to exercise our discretion in paying these overdrafts.
If I choose not to opt in at this time to have my ATM and debit card transactions included as part of Courtesy Select PLUS but change my mind later, how can I opt in and when will it take effect?
- You may call (757) 242-6111, or click this link at any time to opt in to have your ATM and everyday (one-time) debit card transactions included. The request will become effective within five (5) business days after receipt.
Can I change my ATM and everyday (one-time) debit card transactions election?
- Yes, you may change your ATM and everyday (one-time) debit card transactions choice at any time; however, each time you make a change it may take up to five (5) business days after the receipt of the Opt In/Opt Out notice to complete the request.
My spouse and I are both signers on two different accounts. If we want to have our ATM and everyday debit card transactions included as part of Courtesy Select PLUS, do we both have to opt in?
- Only one authorized signer per account must opt in for an election to take place.
Are business accounts impacted by the change in regulation?
- No, Regulation E applies to consumers only. All business transactions will be processed under the bank’s standard overdraft practices.