Overdraft Privilege
- Allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction
- Even if you have Overdraft Protection, Overdraft Privilege is still available as a secondary coverage if
the other protection source is exhausted
- Please review the "What Else You Should Know" information below
Overdraft Privilege Details
Transactions Covered with Overdraft Privilege
for which a fee for paying an overdraft may be imposed |
Standard Coverage
(No action required) |
Extended Coverage
(Your consent required) |
Checks |
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ACH - Automatic Debits |
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Recurring Debit Card Payments |
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Online Bill Pay Items |
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Internet Banking Transfers |
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Telephone Banking |
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Teller Window Transactions |
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ATM Transactions
Customer’s with Consumer accounts must provide consent in order for Mechanics Bank to authorize and pay overdrafts relating to ATM Transactions |
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Everyday Debit Card Transactions
Customer’s with Consumer accounts must provide consent in order for Mechanics Bank to authorize and pay overdrafts relating to Everyday Debit Card Transactions |
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What else you should know
As part of Overdraft Privilege, we may authorize and pay checks and other charges that exceed the balance that is available to pay items to your account each day.
Overdraft Privilege (Standard Coverage) provides overdraft coverage for checks, ACH (automatic debits), recurring debit card transactions, teller transactions, and telephone and internet banking transactions.
For Consumer accounts, if you consent to Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the Standard Coverage transactions listed above. Overdraft fees will apply.
You can authorize, decline or revoke Extended Coverage for future transactions by doing one of the following:
- Call us at 800.797.6324
- Complete the online consent form
- Complete the online consent form located in Online Banking under My Resources > Debit Card Overdraft Options
- Complete the online consent form located in Mobile Banking under More > Debit Card Overdraft Options
- Visit any Mechanics Bank branch
- Print and complete the consent form and mail it to us at: Mechanics Bank, P.O. Box 8070, Walnut Creek, CA 94596
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.
Fees
Should an overdraft occur on your account, our normal fees and charges still apply whether or not the item(s) is (are) paid by the Overdraft Privilege, including:
For Consumer Accounts
- Overdraft or Returned Item fees will not be charged if the balance in your account is overdrawn by $10 or less after posting all transactions at the end of the business day
- We will charge an Overdraft or Returned Item fee of $10 for any item $10 or less that overdraws your account by more than $10 after posting all transactions at the end of the business day
- We will charge an Overdraft or Returned Item fee of $35 for any item greater than $10 that overdraws your account by more than $10 after posting all transactions at the end of the business day
- The maximum Overdraft or Returned Item fees charged per business day is $140
- If your Consumer account balance remains overdrawn for longer than 5 business days, we will charge your account a Continuous Overdraft fee of $5 for each of the consecutive business days the account remains overdrawn, beginning on the 5th business day and ending on the 14th business day
For Business Accounts
- We will charge a $35 Overdraft fee when an item is paid or a $35 Returned Item fee when an item is returned
- A maximum of 10 Overdraft or Returned Item fees ($350) will be charged per business day
- If your Business account balance remains overdrawn for longer than 5 business days, we will charge your account a Continuous Overdraft fee of $5 for each of the consecutive business days the account remains overdrawn, beginning on the 5th business day and ending on the 14th business day.
Your Obligation to Cover Overdrafts
Depositors and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand. Each Authorized Signer will continue to be obligated for all such amounts. Funds from your next deposit may be used to cover any overdrafts; however your account must be brought to a positive balance no later than thirty two (32) days after the initial overdraft occurred for at least one business day.
READ OUR OVERDRAFT PRIVILEGE POLICY
If you have any questions or would like more information about overdraft protection options, Overdraft Privilege or Extended Coverage, please call us at 800.797.6324 or stop by a Mechanics Bank branch.