Even with the best money management practices, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned or a transaction denied can be a costly, inconvenient, and potentially embarrassing experience.
At Merrimack County Savings Bank, we do not encourage overdrafts. In every respect, we encourage our customers to manage their finances responsibly. However, we want to save them from the additional merchant fees and possible credit history damage this might result if a check is returned or a payment denied.
What can you do to avoid overdrawing your account if, despite taking all precautions, your balance falls to zero and a payment is presented against your account? The Merrimack offers three approaches to help:
If your account is overdrawn, our system will look to each of these programs or services to cover the overdraft in the order listed above. For example, if you have CheckReserve, we will use that program first. If you don’t have CheckReserve, we’ll look for the Savings-to-Checking Overdraft Transfer option. After those first two options are exhausted, we’ll look to Courtesy Pay.
Customers have told us time after time that they appreciated having their overdrafts covered, even if that meant paying a fee. We are completely supportive of the new rule, however, especially if it helps raise awareness among all consumers of the importance of responsibly managing their checking accounts and cash flow. We will continue to provide all of our overdraft options, including offering the opt-in for everyday debit and ATM transactions.
We want to reinforce the importance of seriously considering your choice to opt in to the everyday debit and ATM transaction portion of our standard overdraft service, Courtesy Pay. Why opt in? One example is to avoid discovering, after completing the family’s weekly grocery shopping, that you have insufficient funds. Without your advance opt-in the transaction would be rejected.
You may opt in by written form, by telephone, or in person. A written opt-in form will be sent with your statement in June or July. Please look out for it and return it, call us or stop by any office. You may also opt in online.