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Overdraft Privilege

Understanding Overdraft Privilege

Overdraft Privilege - what it is and what it isn't

Overdraft Privilege (ODP) is a program we implemented to provide you with a way to avoid some of the costs and hassles associated with a returned payment. Rather than returning a payment that normally would not clear your account because funds are not available to cover it, our system will draw from the ODP placed on your account and use it to cover the item. And while there is a fee for using ODP, it can save you from paying fees like returned check fees or late fees. It also can save you the time needed to address the returned payment and the embarrassment of having your payment returned for non-sufficient funds.

It is not a loan or a line of credit and should not be thought of as such. Visit our overdraft options page to learn more about the many options we offer that you can use outside of ODP to prevent an overdraft in your account.

Here's an example of how it works:

John Q. Member has $100 in his checking account. A check he wrote for $150 attempts to clear his account before his payroll arrives via direct deposit. John has Overdraft Privilege (ODP) in the amount of $300. Rather than being charged a $36 Non-Sufficient Funds fee plus a merchant returned check fee, his ODP will cover the $150 check and he'll only pay a $36 ODP fee. He should not have to pay any additional fees for this transaction nor will he have to take the time to provide an alternative form of payment to the merchant. He will need to ensure that he brings his account back to a positive balance since there was a $50 deficit in his account that triggered the use of ODP. Members who have had ODP cover a check or debit card transaction were most grateful that the program was in place. Merchants may present items multiple times for payment. If this occurs and there are not funds in the account to cover the transaction, there could be additional fees incurred.  Members have approximately 30 days to bring their account back to a positive balance in order to retain their Overdraft Privilege.

Remember: ODP should only be used as a last resort. First-time users who voluntarily opt into the program and did not understand how the program works may receive a full fee reimbursement and be removed from the program permanently. 

Other helpful resources

  • Overdraft Options - We offer many options that can help you avoid using ODP. This page explains these options along with how you can put them in place
  • Understanding Your Account Balance - Knowing what affects your account balance can go a long way in helping you avoid overdrawing your account. This page offers explanations and examples.
  • How Transactions Post - Understanding how debits and credits flow through your account can really help you avoid an overdraft situation. This page explains how they are processed and why.

If you have questions regarding Overdraft Privilege or wish to receive financial counseling, please contact us at 901-380-7400 or 800-872-3728, at,  or visit any one of our banking centers.


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