Skip to main content
IBC Bank Overdraft Courtesy

Overdraft Courtesy® 

Overdraft Courtesy® is a discretionary service offered to our customers who are United States Citizens or Resident Aliens, and therefore not available to foreign customers. Your account must be open for 30 days and be in good standing to be eligible for the Overdraft Courtesy® Program*.

 An overdraft occurs when you do NOT have enough available funds in your checking account to cover a transaction, but we pay it anyway. IBC can cover your overdrafts in two different ways:

1. We offer the Overdraft Courtesy® Program that comes with your account. See Overdraft Courtesy® Customer Disclosure for Consumer Accounts for details; or
2. We also offer Overdraft Transfer Protection, which can link your checking account to a secondary account and if items post against insufficient funds on the checking account, the necessary funds are automatically transferred from the secondary account for only $12 per daily transfer, no matter how many items are presented. This service may be less expensive than Overdraft Courtesy®.
 

Transactions Covered by Overdraft Courtesy®


The following transactions may be authorized and paid pursuant to the Overdraft Courtesy® Program:
  • Checks and ACH payments
  • Automatic bill payments

If you decide to opt-out of the Overdraft Courtesy® Program, the bank will not pay any item presented when you do not have enough funds. Please be aware that there is a $35 return item fee for each check or ACH payment presented against insufficient funds, and merchants typically charge a fee for returned checks. Return item fees will also be assessed if checks or ACH payments are presented and the overdraft limit is exceeded. If you use your debit card at a POS or at the ATM when you do not have sufficient funds in your account, the transaction may be declined and you will NOT be charged a fee.
 

Coverage of ATM & Everyday Debit Card Transactions:

As required by federal regulation, we will not authorize and pay overdrafts for the following types of transactions unless you ask us to:
  • ATM transactions
  • Everyday debit card transactions
 
If you decide not to have these transactions covered, the transaction will be declined if you do not have sufficient funds in your account, and you will NOT incur an overdraft charge or item return fee. This may be less expensive for you than opting-in to ATM and everyday debit card transactions.

If you decide to opt-in to have ATM and everyday debit card transactions authorized and paid, the transactions will be authorized and paid by the bank up to your established limit and you will be charged an overdraft fee.
 









 

IBC's Overdraft Courtesy Fees & Charges


IBC will charge you an overdraft fee of up to $35 each time we pay an overdraft. Consumer accounts will not be charged an overdraft fee if ending account balance is overdrawn by $3 or less.
  • Your account may be assessed multiple overdraft charges (up to a maximum of six (6) overdraft fees per day or $210 total per day for consumer accounts).
  • Your account will accrue overdraft interest at the rate of 17.75% per annum from the date of the overdraft until the date of receipt by Bank of repayment of such overdraf

Overdraft Courtesy® is a privilege extended to customers at IBC's discretion. Overdrafts must be repaid within 35 days. Transactions may be refused if they exceed courtesy amount or if account is not in good standing. PLEASE NOTE: No fees or overdraft interest are assessed if you never use these overdraft services.

IBC's Overdraft Courtesy® is a discretionary customer service that may cover inadvertent or occasional overdrafts. You should know that there are less expensive options in case of an emergency, such as Overdraft Transfer Protection, as explained above. For complete details of the Overdraft Courtesy® terms, please refer to the Overdraft Courtesy® Customer Disclosure for Consumer Accounts.

Please remember that you always have a choice, and you can change your mind at any time about having Overdraft Courtesy® on your account and whether or not you want ATM and everyday debit card transactions covered by Overdraft Courtesy®.

* The Bank may, in its discretion, cover overdrafts created by foreign customers. Such overdrafts are subject to fees and other limitations. Please refer to the Deposit Account Agreement and the Schedule of Fees and Charges for more information.

To make your choice, complete this form and present it to any IBC Bank Representative or mail it to the address on the form. You may also make your choice on IBC Voice or by logging into IBC Bank Online.
 

Overdraft Courtesy Customer Disclosure

This discretionary service is offered to our customers who are United States residents or Resident Aliens.
 
Discretionary service. Bank is not obligated to pay any item presented for payment if your account does not contain sufficient available funds, and any discretionary courtesy payment (or other negotiation or processing) by Bank of any non-sufficient fund check or other item as identified below does not obligate Bank to pay any additional non-sufficient fund check or item or to provide prior notice of its decision to refuse to pay any additional non-sufficient fund check or item. Approval of payment of reasonable overdrafts by Bank on consumer accounts in good standing (as described below) is only a courtesy, and not a right or an obligation, is within Bank's sole and absolute discretion, and can cease at any time without prior notice or reason or cause.
 
"Good standing" requirement. Pursuant to Banks commitment to always "Do More," now and in the future, if your consumer account (primarily used for personal and household purposes) or your sole proprietor account has been opened for at least 30 days and is maintained in good standing, which includes at least: A) Making regular deposits consistent with your past practices; B) Depositing $300 or more in your account within each thirty (30) day period and bringing your account balance to a positive balance within every thirty-five (35) day period; C) You are not in default on any loan or other obligation to Bank; and D) You are not subject to any legal or administrative order or levy, Bank will consider, as a discretionary courtesy and not a right or obligation, approving your reasonable overdrafts.
 
Limits. This courtesy will generally be limited to a maximum of (i) a $300 overdraft (negative) balance for "Free Checking Accounts," (ii) a $500 overdraft (negative) balance for "Free Checking Accounts" that have been open and in good standing for at least one year, OR which have direct deposit, where there have been two or more direct deposits totaling at least $600 within the past sixty (60) day period, (iii) a $700 overdraft (negative) balance for "Free Checking Accounts" that have been open and in good standing for at least one year, AND which have direct deposit, where there have been two or more direct deposits totaling at least $600 within the past sixty (60) day period, (iv) a $500 overdraft (negative) balance for "Other Personal Checking Accounts / Biz Rite Accounts," (v) a $700 overdraft (negative) balance for "Other Personal Checking Accounts / Biz Rite Accounts" that have been open and in good standing for at least one year, OR which have direct deposit, where there have been two or more direct deposits totaling at least $600 within the past sixty (60) day period, and (vi) a $900 overdraft (negative) balance for "Other Personal Checking Accounts / Biz Rite Accounts" that have been open and in good standing for at least one year, AND which have direct deposit, where there have been two or more direct deposits totaling at least $600 within the past sixty (60) day period. Customers are highly encouraged to balance their checkbook and use their overdraft courtesy in a responsible manner that avoids excessive fees.
 
Covered Transactions. Overdraft Courtesy Program covers checks, in person withdrawals, ATM withdrawals, and electronic transactions. "Electronic transactions" includes automatic payments, online bill pay, and debit cards used at point of sale. Authorization and payment of overdrafts for ATM and everyday debit card transactions by Bank are subject to your "opt-in" decision to such coverage.
 
Order of payment. It is the bank's policy to clear items in the following order: (1) any wire transfers from lowest to highest dollar amount; (2) items we have already paid out or committed to pay from lowest to highest dollar amount such as ATM withdrawals, teller cash withdrawals, transfers, and debit card or point of sale withdrawals; (3) checks and ACH withdrawals from lowest to highest dollar amount. Transactions may not be processed in the order in which they occur. The order in which transactions are processed can affect the total amount of overdraft/non-sufficient funds fees incurred. Bank reserves the right to clear in any order, as permitted by state law.
 
Repayment of overdrafts. The total of the courtesy overdraft (negative) balance, including any and all bank fees and charges, including all non-sufficient funds/overdraft fees and OD interest charges is due and payable upon demand, and Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Deposit Account Agreement. The amount you are overdrawn plus your bank's fees will be deducted immediately, in full, from your next deposit(s) - including from payroll deposits made by your employer, government benefit deposits, and other direct deposits on which you may depend.
 
Closing of account. If your account is not returned to a positive balance within 45 days of the date it first become overdrawn, your account will be closed.
 
Fees. The Bank will charge you an overdraft fee of $35 each time the bank pays an overdraft. Your account may be assessed multiple overdraft charges up to a maximum of six (6) overdraft fees per day or $210 total per day. If your account is a consumer account, you will not be charged an overdraft fee if your ending account balance is overdrawn by $3 or less. Fees are subject to change. You will receive advance notice of any fee increase in accordance with state and federal law. In addition, overdraft amounts will accrue an OD interest charge at the rate of 17.75% per annum from the date of the overdraft until the date of receipt by Bank of repayment of such overdraft. The amount of your overdraft courtesy will be reduced by the imposition of the fee(s).