Overdraft Protection Services FAQ

 

  1. What is an overdraft?
  2. What is the bank’s Standard Overdraft Coverage?
  3. What are the bank’s Overdraft Protection Plans?
  4. How do the different Overdraft Protection Plans work?
  5. Can I have both Standard Overdraft Services and an Overdraft Protection Plan?
  6. How do I opt in/out for Standard Overdraft Coverage on my ATM and everyday debit card transactions?
  7. What is the difference between a "recurring" versus an "everyday" debit card transaction?
  8. Are business accounts eligible for Standard Overdraft Coverage and Overdraft Protection Plans?
  9. What are the bank’s overdraft fees?
  10. What is the Sustained Overdraft Fee?
  11. What are the fees associated with Overdraft Protection Plans?

 

 

More questions? Contact us online or call us at: 1-800-448-8812

 

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Q:

What is an overdraft?

A:

An overdraft occurs when you don't have the necessary available funds in your account to cover transactions you have made, but we pay it on your behalf. Transactions can include withdrawals made at an ATM or teller window, debit card purchases, checks, automated payments or other electronic transactions using your checking account number.

Q:

What is the bank’s Standard Overdraft Coverage?

A:

With our Standard Overdraft Coverage, we may authorize and pay items into overdraft such as checks and other transactions made using your checking account number, automatic bill payments, and recurring transactions set up using your debit card. Our Standard Overdraft Coverage is automatically applied to these transactions and overdraft fees may be assessed on each item paid into overdraft.

We do not authorize and pay ATM and everyday debit card (point of sale) transactions into overdraft unless you ask us to by opting-in to this coverage on these transactions. If you opt-in and we authorize and pay these items into overdraft, an overdraft fee may be assessed on each item. Please note that even if you do not opt-in, we may pay these items into overdraft if sufficient funds were available at the time of authorization, but not available at the time of settlement; however we will not charge you an overdraft fee.

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. Even if we pay your account into overdraft, we maintain the right not to do so at any other time. If we do not authorize your transactions, it will be declined and it will not be paid into overdraft.

Q:

What are the bank’s Overdraft Protection Plans?

A:

We offer a variety of Overdraft Protection Plans, which allow you to have funds automatically transferred to your checking account from another Hancock/Whitney account such as another checking or savings account, our HandyLine product, a Preferred Line of Credit or a Home Equity Line of Credit. Only one Overdraft Protection product can be linked to your checking account.

Home Equity Line of Credit cannot be used as overdraft protection in Texas.

Q:

How do the different Overdraft Protection Plans work?

A:

For coverage from a Handyline, if your checking account balance will be overdrawn after processing at the end of the banking day, we will systematically transfer funds in $100 increments from the Handyline to cover the overdraft up to the available balance in the Handyline.

For coverage from another checking or savings account, or from a Preferred Line of Credit or Home Equity Line of Credit, if your checking account balance will be overdrawn after processing at the end of the banking day, we will systematically transfer funds in the exact amount needed from the linked account to cover the overdraft up to the available balance in the linked checking or savings, or the available limit in the line of credit.

Please note that you can also proactively transfer funds from the linked account to your covered checking account.

Q:

Can I have both Standard Overdraft Services and an Overdraft Protection Plan?

A:

Yes. Customers who have coverage from an Overdraft Protection Plan may also be covered by our Standard Overdraft Service in the event the linked account funds are unavailable.

Q:

How do I opt in/out for Standard Overdraft Coverage on my ATM and everyday debit card transactions?

A:

You can make or change this election at any time by calling us at 1-800-448-8812 or by visiting your local branch. It may take up to 72 hours to process your request.

Q:

What is the difference between a “recurring” versus an “everyday” debit card transaction?

A:

Everyday debit card transactions include purchases you make on any given day such as at a store, a gas station, a restaurant or online.

Recurring debit card transactions include the ongoing preauthorized purchases you’ve established such as a monthly gym membership.

Q:

Are business accounts eligible for Standard Overdraft Coverage and Overdraft Protection Plans?

A:

Business accounts automatically receive Standard Overdraft Coverage on all transactions, including ATM and everyday debit card (point of sale) transactions.

Business accounts are also eligible to receive coverage from an Overdraft Protection Plan, such as from another business checking or savings account, or a business line of credit product.

Q:

What are the bank’s overdraft fees?

A:

We charge $36 for each item paid into overdraft and $36 for each item returned for Insufficient Funds. We will assess no more than five (5) Overdraft and/or Insufficient Funds fees (collectively or individually) per account per day. Please note that the Sustained Overdraft Fee referenced below does not count toward this daily limit of 5 fees and may be assessed in addition to those fees.

No overdraft fee is charged when your account is overdrawn $5 or less after all items have posted. Additionally, we waive the overdraft fee and NSF fee on all individual transactions of $5 or less.

Q:

What is the Sustained Overdraft Fee?

A:

For each time your account remains overdrawn at least nine (9) calendar days, we will assess one Sustained Overdraft Fee of $36. Please note that we count as the first of the nine consecutive calendar days the day on which we post the items which created the overdraft in your account, regardless of whether we have provided you with notice of the overdraft(s). This fee is separate from and may be charged in addition to the Daily Limit of 5 overdraft and/or non-sufficient funds (NSF) fees. We will not charge this fee if you pay us the total amount of the overdrawn balance on the ninth (9th) calendar day or the next banking day, if the 9th calendar day falls on a weekend or federal holiday that is not a banking day. We will also not charge this fee if:

  • Your account is overdrawn by $5.00 or less on the day on which we would otherwise charge it, or
  • You have not opted-in to the payment of ATM and everyday debit card (point of sale) transactions and the amount overdrawn only includes amounts from ATM and point of sale transactions presented and paid against insufficient funds, or
  • The amount overdrawn only includes bank fees and/or service charges

Q:

What are the fees associated with Overdraft Protection Plans?

A:

Transfers systematically made from another checking or savings account, as well as from the HandyLine product are $10 per transfer per day. There are no transfer fees to proactively transfer funds to your checking account in anticipation of an overdraft situation.

There are no transfer fees on transfers made from the Preferred Line of Credit or Home Equity Line of Credit, whether systematically made or proactively transferred by you.

Interest may accrue on outstanding balances maintained in the HandyLine, Preferred Line of Credit and Home Equity Line of Credit.

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