Personal Services at American Bank

Overdrafts and Overdraft Fees

What You Need to Know about Overdrafts and Overdraft Fees

What is an overdraft?

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

Overdraft Privilege Service

We do typically authorize and pay consumer overdrafts to $800 under our Overdraft Privilege Service if your account is in good standing for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments (such as recurring Debit Card and payments you have authorized)

We will not authorize and pay overdrafts for the following types of transactions unless you ask us to:

  • ATM Transactions
  • Everyday Debit Card transactions (such as one-time Debit Card and ATM card purchases)

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.

Under our Overdraft Privilege Service we will not charge an overdraft fee if your end-of-day balance is less than $10 negative. We will charge you a fee of up to $25 for each item we pay that would overdraw your account. There is a $100 per day limit on the total fees we can charge you for overdrawing your account.

Participation in the Overdraft Privilege Service is not mandatory. You may opt out of the service any time by notifying one of our Customer Service Representatives.

Overdraft Protection

Overdraft Protection allows an automatic transfer from your savings, money market, or other checking account when you do not have enough money in your account to cover a transaction. This option may be less expensive than our standard overdraft practices. Contact any of our offices to learn more about this service or to obtain an authorization form.

Responsible Use of the Overdraft Privilege Service

We recognize that mistakes or emergencies can occur and that financial circumstances can change and that overdrafts can be inadvertent or unavoidable. However, you should not rely on overdrafts as a means to pay ordinary or routine expenses. Overdrafts can be expensive if used as a common or frequent method of payment. If at any time you feel you need help with your financial obligations, please contact one of our customer service representatives at (920) 922-9292. You may also wish to obtain Credit Counseling information. Contact the National Foundation for Credit Counseling at 1-800-388-2227 to locate a local consumer credit counseling service, or check your local telephone directory for listings.