Understanding Overdraft

Overdraft Privilege allows you to overdraw your account to help prevent bounced checks.

• Customers can have both Overdraft Protection and Privilege
• Overdraft Privilege can be used if protection service has been exhausted
• Overdraft Privilege is subject to account eligibility requirements
• Covers transactions certain transaction types; Checks, ACH – Automatic Debits, & Bill Pay

Example: A customer made out a check payable to his landlord for $1200 rent. The customer has $850.00 available balance and $800 ODP. The check can be cashed, putting the customer in the negative the remaining amount, plus the service charge.

Overdraft Privilege Reg E is an extension on a current Overdraft Privilege.

• Reg E requires written authorization from the customer
• Covers all transaction types, allowing ATM and Debit Card transactions
• Customers can enroll and unenroll at any SCB branch

Example: A customer’s checking account has the Available Balance of $35. They go to get gas which will be a $52 debit card transaction. The transaction will go through overdrawing the account $17, plus the applicable overdraft charge.

Overdraft Protection may help prevent overdrafts by moving funds from a linked account or line of credit.

• Linked Accounts and line of credit must be held at Susquehanna Community Bank
• The bank will automatically move available funds if account is being overdrawn
• Overdraft protection is used before overdraft privilege is utilized
• Customers must sign to enroll in Overdraft Protection or to remove

Example: Customer’s checking account Available Balance is $42 and the Available Balance in the linked savings account is $1,000. If they write a check for $125, this would overdraw the checking account by $83. The bank would auto transfer $83, plus the service charge, from the primary account linked for overdraft protection.