Personal Banking: Bounce Protection

A Special Overdraft Privilege for Checking

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. 

At Commercial Bank & Trust Company, we do not encourage overdrafts.  As always, we encourage you to manage your finances responsibly.  However, 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. 

That’s why we provide “Bounce Protection,” a special overdraft privilege service for Commercial Bank’s checking customers.

WHAT IS BOUNCE PROTECTION?

Bounce Protection is an overdraft privilege service requiring no action on your part.  You don’t have to sign anything.  Your Bounce Protection limit amount will be automatically assigned. 

HOW DOES BOUNCE PROTECTION WORK?

We are not obligated to pay any item presented for payment if your account does not contain sufficient funds; however, as long as you maintain your account in “good standing,” we may approve your overdraft items within your current available Bounce Protection limit as a non-contractual courtesy.

For overdraft privilege consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Bounce Protection as a continuing line of credit; and (3) there are no legal orders, levies, or liens against your account.

Please note that the amount of the overdraft plus our Non-Sufficient Funds (NSF) fee of $29 for each paid item will be deducted from your overdraft limit.  If the item is returned, the NSF fee of $29 for each returned item will be deducted from your account.  No interest will be charged on the overdraft balance.

HOW DO I KNOW WHEN I USE THE OVERDRAFT LIMIT?

You will receive an overdraft notice in the mail each time items are paid.  The notice will show the check number, amount and the NSF fee for each paid item.  You will need to subtract the total fees when balancing your checkbook.

WHAT IS MY BOUNCE PROTECTION LIMIT?  IF I HAVE TWO CHECKING ACCOUNTS, CAN I GET BOUNCE PROTECTION ON BOTH?

Locate your account type below and make note of the corresponding limit.  If you have multiple accounts, you have a limit on all eligible accounts.

WHAT IF I GO BEYOND MY BOUNCE PROTECTION LIMIT?

Overdrafts above and beyond your established Bounce Protection limit may result in checks or other items being returned to the payee.  The NSF fee of $29 for each returned item will be charged per item and assessed to your account.  An NSF notice will be sent to notify you of items paid and/or returned.

HOW QUICKLY MUST I REPAY MY BOUNCE PROTECTION?

You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and must do so within 30 calendar days.  If you are not able to do so, you will receive a letter from Commercial Bank & Trust Co. informing you that your Bounce Protection limit has been suspended and additional items will be returned.

WHAT DOES MY BOUNCE PROTECTION PRIVILEGE COST?

There is no additional cost associated with this privilege unless you use it.  You will be charged our NSF fee of $29 for each paid item created by check, in-person withdrawals, debit card purchases, ATM withdrawals or other electronic means paid under the limit.  For example, three paid items in one day will result in $87 in NSF fees.  To help you manage your account, the total fees you have paid for items (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking statement.

WHAT ARE SOME OF THE WAYS I CAN ACCESS MY BOUNCE PROTECTION LIMIT?  WILL MY LIMIT BE REFLECTED IN THE BALANCE I RECEIVE?

The chart below shows the different ways you can access your Bounce Protection limit and indicates whether or not this limit will be reflected in the balance provided.

HOW SOON CAN I USE MY BOUNCE PROTECTION?

If you are a new account holder, you may be able to use the overdraft privilege service 30 days after the account is opened, assuming your account is in “good standing” as defined in this brochure.

WHAT ARE SOME OTHER WAYS I CAN COVER OVERDRAFTS AT COMMERCIAL BANK?

The best way to avoid overdrafts and fees is to keep track of your account balance by entering all items in your check register, reconcile your checkbook regularly and manage your finances responsibly.  However, if a mistake occurs, Commercial Bank & Trust Co. offers ways to cover overdrafts in addition to Bounce Protection.

WHAT IF I DO NOT WANT TO HAVE BOUNCE PROTECTION ON MY CHECKING ACCOUNT?

If you would like to have this service removed from your account, please call (800) 273-8889 or your local banking center.

BOUNCE PROTECTION DISCLOSURE

An insufficient balance could result in several ways, such as (a) the payment of checks, electronic funds transfers, or other withdrawal requests; (b) payments authorized by you; (c) the return of unpaid items deposited by you; (d) the imposition of bank service charges; (e) the deposit of items which according to the bank’s Funds Availability Policy, are treated as not yet available or finally paid.  We are not obligated to pay any item presented for payment if your account does not contain sufficient funds.  However, if you maintain your account in good standing, defined as (1) making regular deposits to bring your account to a positive balance at least once every 30 days, and (2) there are no legal orders outstanding, we may approve your reasonable overdrafts as a non-contractual courtesy.  We may approve an overdraft for you in excess of your Bounce Protection limit plus our overdraft charge.  We may refuse to pay an overdraft for you at any time, although we may have previously paid overdrafts for you.  You will be notified by mail of any non-sufficient fund items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item.  The amount of any overdraft plus our Insufficient Funds handling fee charge(s) and any daily overdrafts fee(s) that you owe us shall be due and payable upon demand.

In the normal course of business, we process electronic transactions first, and then pay checks in serial number order.  Please be aware that the order of item payment may create multiple overdraft items during a single banking day.  Overdraft charges are $29 per item and $5 per day after the 5th consecutive day.  These fees will be deducted from your Bounce Protection limit.  If there is an overdraft paid by us on an account with more than over owner on the signature card, each owner shall be jointly and severally liable for such overdraft, plus our Insufficient Funds handling fee charge(s).  You should not that your Bounce Protection limit might be included in your available balance provided by a teller, at the ATM, at a Point of Sale, or through our Voice Response System.

OPT OUT:  You may opt out of the Bounce Protection privilege at any time, but you are responsible for any overdrawn balances at the time of opting out. 

Bounce Protection is not a loan of any kind such as a continuing line of credit.

LIMITATIONS:  Available to individually owned accounts in good standing for personal or household use.  Commercial Bank & Trust Company reserves the right to limit participation to one account per household and to suspend, revoke or discontinue the product at any time. 

REQUIRMENTS:  To be eligible for Bounce Protection an account must meet the following:

• Account opened for 30 days.
• Original deposit for $100 or more.
• Account overdrawn no more than twice during the first 30 days.