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Overdraft Services

What You Need To Know

Overdraft Policies for Debit and ATM cards

Federal Reserve rules give debit and ATM card users special options regarding overdrafts. Banks, credit unions, and other financial institutions must offer you the ability to make decisions about overdrafts for transactions made with your debit or ATM cards.

Here are some key things you need to consider when making this decision:

The Basic Facts

An overdraft occurs when you make a purchase or ATM transaction but don’t have enough money in your account to pay for it. Depending on the overdraft services tied to your account, we may cover you when you become overdrawn. Our regular overdraft fee may be applied and may apply each time you overdraw your account.

Generally, we may cover your overdrafts in one of two different ways:

  • Overdraft Privilege. We currently offer Overdraft Privilege to cover consumer accounts that are held in good standing with the bank. Overdraft Privilege is a courtesy service we offer that can provide emergency funds when needed or protect you from the embarrassment of a declined debit card transaction. There is no charge for overdraft privilege unless you actually overdraw your account. At that time regular overdraft fees will apply.
  • Overdraft protection plans. We also offer a Personal Reserve Account, which is a personal line of credit that may be set up to cover transactions when you overdraw your account. Personal Reserve Accounts have an annual fee and you must meet certain credit criteria to qualify, but this may be less expensive than incurring overdraft fees. Another alternative is to set up a sweep from your savings account to your checking account to cover overdrafts. There is a per-transaction fee, but again, this option may be less expensive for you, depending on your circumstances.

The vast majority of our customers never overdraw their accounts and never incur fees, however life doesn’t always go according to plan and overdrafts do happen. Without overdraft protection, your ATM and everyday debit card transactions may be declined if you attempt to make a transaction without sufficient funds.


You choose. If you wish to have overdraft privilege services cover your everyday debit card and ATM transactions, you must “opt in” Click here to download the standard notice and form. Complete the bottom portion of the form and return it to us. If you do not opt in (agree), our standard overdraft practices WILL NOT apply to your everyday debit card and ATM transactions. These transactions typically will be declined if you don’t have enough money in your account.  You can also opt in through First OnLine Internet Banking  and through our 24-hour Account Information Line, 888-246-6233.

Flexibility. Whatever your decision, the overdraft rules give you flexibility. If you opt in, you can cancel at any time.


Everyday debit card transactions: Purchases made with your debit card on a day-to-day basis (excludes all checks and automatic bill payments)

Overdraft: An overdraft occurs when you write a check, make an ATM transaction, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for an amount greater than the balance in your checking account.

Opt In: giving your bank permission to include you in a particular service.