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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:

Assume your actual and available balances are both $40, and you use your debit card at a restaurant to pay your bill totaling $30. If the restaurant requests authorization in the amount of $30, an authorization hold is placed on $30 in your account. Your available balance is only $10, but the actual balance remains $40. Before the restaurant charge is sent to us for payment, a check that you wrote for $40 is presented for payment. Because your available balance is only $10 due to the $30 authorization hold, your account will be overdrawn by $30 when the check transaction is posted to your account even though your actual balance is $40. In this example, if we pay the $40 check in accordance with our standard overdraft services, we will charge you a fee for overdrawing your account as disclosed in the Schedule of Fees and Charges. The fee will also be deducted from your account, further increasing the overdrawn amount. In addition, when the restaurant charge is finally submitted to us for payment, we will release the authorization hold and pay the transaction amount to the restaurant. The transaction amount may be $30 or a different amount (for example, if you added a tip). Because the amount of the restaurant charge exceeds your available balance at the time the charge is settled (i.e., at the time the merchant or its financial institution requests payment or the transaction posts to your account), we will charge you another fee for overdrawing your account, even though you had a sufficient available balance in your account at the time the restaurant charge was authorized and approved.

This is a general description of certain types of transactions. These practices may change, and we reserve the right to pay items in any order we choose as permitted by law.

Overdraft Privilege should only be utilized as a last resort. First time users that voluntarily opted into the Overdraft Privilege program and did not fully understand how the program works may receive a full fee reimbursement and be removed from the program permanently. If you feel you should not have been charged a fee, we may be able to assist; please contact us so that we may review your account history and discuss available options with you.  For support or financial counseling, please visit our Overdraft Options page or call us at 901-380-7400. 

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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