What is an overdraft and how does it occur?
An overdraft occurs when you do not have a sufficient Available Balance in your checking account to cover an item, but we pay it anyway. The “Available Balance” is your account balance, which can include available funds in a linked sweep account or ChexMate Account, if applicable, less any holds place on your account, pending transactions and uncollected deposits. In other words, the Available Balance is your actual balance less any pending debit card purchases, ACH transactions, Checks being processed or any other pending withdrawals and outstanding transactions from your account and less any deposits that are not yet available. The Available Balance factors in processed items that have not yet posted to your account. Because certain external system applications are outside of the Bank’s control, they may not always display an up-to-date Available Balance. Even so, your Available Balance should be understood by you to be the resulting balance set forth in the above definition, and it is this definition that shall be the controlling definition for your account at all times. If you have any trouble understanding Available Balance, you are invited to contact us for assistance. We can cover your overdrafts in three different ways:
- We have a standard overdraft practice (Courtesy Limit) that comes with your account, which is explained below.
- We offer an enhanced overdraft practice (Courtesy Limit Plus) that is available upon request, explained below.
- We also offer overdraft protection plans, which include (credit-based) ChexMate Overdraft Line of Credit and our Optimum Sweep Agreement which is a link between Optimum Money Market and Optimum Checking. To learn more, ask us about these plans.
If an item is presented and would be rejected based upon your account not having a sufficient Available Balance to pay the item, but instead we pay the item, either because you have entered into an overdraft practice or protection plan with us or because you request the item to paid, an Insufficient Funds, Overdraft – POS, and/or Uncollected Funds fee (collectively, “Fee” or “Fees”) may be charged against your account for the paid item.
This notice explains our standard and enhanced overdraft practices.
Standard with your account:
Through Courtesy Limit, we do authorize and pay overdrafts for the following types of items:
- Checks
- Other transactions made using your checking account or debit card number (for example, preauthorized recurring payments, such as monthly utilities, club dues, etc.)
Under this standard practice, we do not authorize or pay the following types of items:
- Everyday, one-time debit card transactions
- ATM withdrawals
Enhanced overdraft practice available upon request:
Through Courtesy Limit Plus, we do authorize and pay overdrafts for the following types of items but only if you notify us to Opt-In your account in Courtesy Limit Plus:
- Everyday, one-time debit card transactions (ATM withdrawals are excluded from Courtesy Limit Plus coverage)
Please note that overdrafts are paid at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged if Canandaigua National Bank & Trust pays my overdraft?
A fee of $37 will be charged each time we pay an overdraft for any transaction item over $5.00. There is no daily limit on the number of paid items that may incur a fee.
When we pay items presented against insufficient funds with our Courtesy Limit Overdraft Program, we do so in anticipation that you will be making a deposit immediately to bring your account to a positive balance. If your account fails to reach a positive balance in 45 days, by regulation we will have to take action and close the account.
What should I do if I believe a Fee was improperly assessed?
You agree to report any errors, including without limitation any Fee you believe was improperly assessed, within 60 days after the statement showing the Fee is made available to you, as set forth in the Rules of the Deposit Account. If no report is made within this time, you waive your right to contest the Fee(s) and you accept the Fee(s) as assessed and the account balance reported as correct.
How can I Opt-Out of Courtesy Limit Plus, if I decide I don't want to allow Canandaigua National Bank & Trust (CNB) to authorize and pay overdrafts on my everyday, one-time debit card transactions?
If you or any owner of the checking account decide in the future you are no longer interested in this service, you can opt out at any time by contacting:
- Our Call Center at (800)724-2621, (585) 394-4260, or Live Chat;
- Your CNB Community Bank Office representative; or
- Send us a message within Online Banking at CNBank.com
What do I need to know about my Courtesy Limit Plus enrollment decision?
If you have chosen to Opt-Out of Courtesy Limit Plus, you risk having your purchase denied at the point of sale for debit card transactions presented against insufficient funds.
See Also: ChexMate Overdraft Protection