Overdraft Privilege
Preventing and Managing Overdraft Fees
At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned due to insufficient funds can be a costly, inconvenient and potentially embarrassing experience.
Kansas State Bank does not encourage overdrafts. As always, we encourage you to manage your finances responsibly. We offer options to assist you in managing your accounts to reduce the likelihood of having an overdraft.
Overdraft-Paid or Returned Item Fees
There is a $33.00 Overdraft Item fee each time we pay or return an overdraft item. We will charge you for each item up to a maximum of five (5) regardless of the number of overdraft items presented each day. Additionally, if your account is overdrawn for 6 or more consecutive business days, we will charge $5 per business day beginning on the 6th business day.
What is Overdraft Privilege?
We want to save you from the additional merchant fees and possible damage to your credit history that might result if a check is returned. Overdrafts can occur for a number of reasons with Overdraft privilege you can rest easy knowing that we've got you covered.
Overdraft Privilege is an overdraft service requiring no action on your part. You don't have to sign anything. Your Overdraft Privilege limit amount will be automatically assigned after you have met certain requirements. Once you are notified your Overdraft Privilege limit is available to you, it may continue to be available provided you maintain the account in "good standing."
Overdraft Opt-Out or Opt-In
Once you have overdraft coverage you can decide whether to Opt-Out or Opt-In. There is no fee to Opt-out or Opt-In.
If you Opt-Out, Overdraft Privilege pays these items up to your limit:
- Checks you write and checks imitated by online Bill Pay
- ACH electronic payments for bills automatically deducted from your account
- Recurring debit card transactions, such as a monthly membership or subscription
If you Opt-Out, your Overdraft Privilege will not cover one-time debit card transactions or ATM withdrawals. These transactions would be declined at the point of sale or at the ATM when there are not sufficient funds in your account to complete the transaction.
If you Opt-In, Overdraft Privilege pays these items up to your limit:
- Checks you write and checks imitated by online Bill Pay
- ACH electronic payments for bills automatically deducted from your account
- Recurring debit card transactions, such as a monthly membership or subscription
- One-time debit card purchases
- Cash withdrawals from ATMs
- One-time online card payments including utilities, online shopping and reservations.
If you Opt-In, your Overdraft Privilege will cover one-time debit card transactions or ATM withdrawals. These transactions would be approved at the point of sale or at the ATM when there are not sufficient funds in your account to complete the transaction as long as it is within your Overdraft Privilege limit. You may be charged an Overdraft item fee.