REG E AND OVERDRAFT PRIVILEGE

Frequently Asked Questions

What is overdraft privilege?

An overdraft occurs when an item, a check, ACH, debit card, ATM withdrawal, is presented to the bank and there are not sufficient funds in a customer’s account to cover the transaction. Overdraft privilege is a service where the bank pays the transaction even if the funds are not in the account, versus declining the item or returning the check.

What type of overdraft protection do I have right now?

Right now your SNB checking account includes the Overdraft Privilege service, which means that if your checking account balance is too low to cover a debit card purchase, ATM withdrawal, check or ACH item, SNB may cover the overdraft up to $800 for your convenience and to help you avoid embarrassment. There is a $25.63 NSF fee per item for this service.

What is changing with Reg E and my debit card?

The federal government has mandated new rules under Reg E, effective August 15th, requiring you to “opt in” in order for banks to consider paying your purchases using your debit card, or ATM withdrawals, in the event there are not funds in your account to cover the purchase or withdrawal.

When you say “I have to opt in,” what does that mean?

Opting in means you are authorizing the bank to consider honoring your request to use your debit card for a purchase or cash withdrawal in the event that the transaction would cause an overdraft.

What is the advantage of Opting In?

The benefits are as follows:

• Peace of mind: Knowing that, in case of emergencies, your transactions will be allowed.
    
• Convenient: Using a debit card or getting funds at the ATM is an easy and convenient way to take care of those unexpected emergencies.
   
• Hassle-free: If you are used to using your debit card and you “opt in” you won’t have the hassle of writing checks to access your Overdraft Privilege if needed. Remember, also, if you write a check in these cases, it may still cause an overdraft, resulting in fees.

How can I “opt in”?

Opting in is easy, just do one of the following:

1. Return the form you received in the mail, indicating all account numbers affected.
2. Call us at 888-256-3247.
3. Go online to your SNB internet banking account and complete the form.
4. Stop in any of our convenient locations.

I have multiple checking accounts with your bank, do I need to opt in for each account?

Yes, you will need to “opt in” to each account, but you can do that all at one time.

If there is more than one owner on the checking account, do we each need to opt in for our cards to work?

No, only one owner per account will need to “opt in”. If you have more than one debit card on your account, both cards will work as long as one owner has “opted in.”

What happens if I don’t opt in?

If you choose not to opt in and happen to be making a transaction with your debit card and this transaction will overdraw your account, the card will be declined. The clerk will tell you the card has been declined and you will then have to present another form of payment or not make the purchase. You will also not be able to access cash at the ATM if the withdrawal will overdraw your account.

Remember that if you write a check as your other form of payment, the check may also cause an overdraft on your account and you will receive the same overdraft charge as using your debit card. A check may also be returned by the bank causing additional charges at the merchant.

I’m not sure I need to have Overdraft Privilege on my debit card/ATM card. Maybe I don’t need it.

Overdraft Privilege on your debit card/ATM is never important until you need it. Say you are at the grocery store, restaurant, gas station or shopping center and your total purchase exceeds your balance. With Overdraft Privilege, your charge will be approved and you will be on your way without delay or embarrassment. Without choosing to “opt in” for the privilege on your card, your transactions could be rejected and you would be told your card has been declined.

What does Overdraft Privilege Cost?

If your account is not overdrawn, there is no cost. If SNB pays your overdraft, you will be charged $25.63 for each item. SNB pays overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

The overdraft fee of $26.53 seems high, is this normal?

SNB’s overdraft fee is competitive with fees charged elsewhere in this area and nationwide. We are required to disclose any fees when the deposit account is established or whenever changes are made to our fee schedule.

Are there other services I can use to prevent an overdraft?

Yes, if you have a savings account or line of credit you can use Overdraft Protection to link your checking account to your savings or line of credit. The transfer from the linked account to cover your overdrafts is performed once a day for a fee of $3.00. If your overdraft is more than the amount available in your linked account then Overdraft Privilege would be available.

What is a one-time debit card transaction?

Most of your purchases with your debit card will be one-time transactions. This would include using your pin number to make a purchase or signing your receipt to make a purchase with your card. A repetitive transaction would be if you used your card to pay a bill each month and the company submits your charges on a regular basis using your card number.

What if I do NOT want to opt in; what do I do?

You don't have to do anything. If you do NOT want to opt in, or we do not receive any opt in notification, SNB will stop paying your ATM and debit card overdrafts beginning August 15, 2010.

If I opt in now, or choose to opt out now, can I change my mind later?

Absolutely. You may change your mind and Opt In or Opt Out at any time.