Overdraft Privilege
Frequently Asked Questions

1. What is Overdraft Privilege?
   Overdraft Privilege is a courtesy service offered to checking customers who maintain their checking account in good standing. Overdraft Privilege ensures that debits and withdrawals will likely be covered, even if you do not have the balances to cover the transaction.
2. What Is the Benefit of Overdraft Privilege?
   Whether you make a mistake balancing your account, need emergency funds, or are simply not very good keeping up with your account balance ... Overdraft Privilege provides a sense of security that:
   
   · Checks will be paid by your bank
   · Debit card purchases will be authorized at point-of-sale
   · ATM withdrawals will be authorized
   
   ... even if you have insufficient funds to cover the transaction.
3. Is there a Fee for Overdraft Privilege? 
   Not for the service. However, you will be assessed a $35 fee each time you overdraw your account. An additional fee of $7 will be charged for each day your account remains overdrawn.
4. Why Must I Opt-In to Debit Card and ATM Benefits of Overdraft Privilege? 
   Beginning August 15, 2010, new federal regulations require banks to discontinue your Overdraft Privilege for ATM withdrawals and everyday debit card transactions unless you affirmatively agree, or Opt-In, to Overdraft Privilege for these transactions.
5. What is a One-Time Debit Card Transaction? 
   The new regulation DIFFERENTIATES between a single purchase at a store, a restaurant, online or by phone … and a RECURRING debit card transaction. In other words, if you have arranged to pay your electric bill or credit card each month AUTOMATICALLY … and provided the company your debit card number instead of your checking account number or a credit card number … the new regulation does not apply. These transactions will be treated just like checks if you overdraw your account. If your account balance is insufficient, and your account has Overdraft Privilege, we will likely pay the transaction and charge an Overdraft Fee to your account.
6. Why Does F&M Offer Overdraft Privilege for My One-Time Debit Card Purchases and ATM Transactions? 
   While F&M Bank never recommends you Overdraft your account, the Overdraft Privilege benefits are designed as a “safety net” for those times when the benefit of paying an NSF fee outweighs not being able to make a purchase or ATM withdrawal when needed. For instance:
   
   · You need to make an important end-of-the-month purchase or pay a bill at a time when your bank balance is low. Overdraft Privilege could authorize your transaction anyway. This would be especially beneficial if a bank NSF fee is LESS than a late payment fee … or the cost of having utility service disconnected.
   
   · You’ve just finished dining out … or you’ve been handed a latte or double scoop of ice cream. Having your debit card declined for insufficient funds, even on a small purchase, could easily cause an embarrassing situation with the merchant, as well as with friends and family who might be with you.
   
   · You’ve just spent an hour grocery shopping. If time is valuable to you … it may be more beneficial to you if we authorize an Overdraft of your account and charge you a fee than if you have to abandon your grocery cart and return at another time to shop again.
7. What Are the Benefits If I Don’t Opt-In?
   You will avoid Overdraft fees on ALL one-time debit card transactions or ATM withdrawals, because authorizations at the point-of-purchase or at an ATM will be DECLINED if your checking account balance is insufficient to cover the request. If you find it difficult keeping up with your account balance ... the inability to withdraw money at the ATM or use your debit card for purchases … can keep you from racking up multiple NSF fees on these types of transactions.
8. What If I Overdraft My Account via Check, ACH Payments or Recurring Debit Card Payment? 
   If you have Overdraft Privilege on your checking account, these transactions will likely be paid if an Overdraft on your account occurs … up to the amount of Overdraft Privilege on your account?
9. How Much Overdraft Privilege Do I Have On My Account? 
   Ask your F&M customer service representative. The amount of Overdraft Privilege varies by the type of checking account you have.
10. How Can I Opt-In to Overdraft Privilege for My
    One-Time Debit Card and ATM Transactions? 
    · By Mail. On May 14, 2010, you were mailed a form to sign and a return envelope.
    · By Phone. You can call toll-free 800-645-4199.
    · In Person. At any F&M Bank office.
    · Online: click here.
11. Can I Change My Opt-In Status? 
    Yes. You may Opt-In or Opt-Out at any time.
12. I’m a Business Owner.
    How Will the New Regulations Affect Me? 
    IF YOUR BUSINESS ACCEPTS DEBIT CARDS as a form of payment, you may experience an increased number of declined transactions when these regulations take effect. If you do not process your card transactions in REAL TIME, you may face liability if a customer has a declined transaction but has already left your place of business. IF YOUR BUSINESS USES DEBIT CARDS to make purchases, the new regulations do not apply to you. If you Overdraft your business checking account with a business debit card … you will continue to be charged $35 per Overdraft incident and $7 for each day your account remains overdrawn.
13. What Can F&M Bank Do To Minimize the Impact of this New Regulation on My Business? 
    We can work with your business to customize a solution that minimizes your liability. We can help you upgrade your equipment processing ability where necessary and review your accounts to ensure you are not charged unnecessary fees.