What is Bounce Protection?
Bounce Protection is a discretionary consumer overdraft service that provides you a safety net with an available overdraft limit. Your Bounce Protection limit may be available for checks and other transactions made using your checking account number or automatic bill payment and recurring debit card payments. Also, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.
How does Bounce Protection work?
As long as you maintain your account in “good standing,” we may approve your overdraft items within your current available Bounce Protection limit as a non-contractual courtesy.
For overdraft privilege consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Bounce Protection as a continuing line of credit; and (3) there are no legal orders, levies or liens against your account.
Please note that the amount of the overdraft plus our overdraft charge of $28.00 for each item will be deducted from your overdraft limit. If the item is returned, the return check charge of $30.00 will be deducted from your account. A daily continuous overdraft charge of $3.00 per day will be charged each business day beginning the 6th consecutive business day the account remains overdrawn. No interest will be charged on the overdraft balance. *Please refer to the overdraft policy below for additional details.
What does Bounce Protection cost?
There is no additional cost associated with this privilege unless you use it. You will be charged our overdraft charge of $28.00 for each overdrawn item created by a traditional paper-based check, a teller withdrawal, an automatic payment (ACH) transaction or a recurring debit card payment. Also, if you have requested us to do so, we may authorize and cover ATM transfers or withdrawals and everyday debit card purchases.
For example, three paid items in one day will result in $84.00 in overdraft charges. The total fees you have paid for items (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking statement.
What is my Bounce Protection limit? If I have two checking accounts, can I get Bounce Protection on both?
Locate your account type below and make note of the corresponding limit. If you have multiple accounts for your household, you may have a limit on each eligible account per social security number.
|Type of Account||Overdraft Limit|
|Choice Plus Checking||$500|
|Choice NOW Account||$1,500|
|Sweet Rewards Checking||$500|
|Sweet Tunes Checking||$500|
|Sweet Saver Checking||$500|
How quickly must I repay my Bounce Protection?
You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and must do so within 30 calendar days. If you are not able to do so, you will receive a letter from FM Bank informing you that your Bounce Protection limit has been suspended and additional items will be returned.
What are some of the ways I can access my Bounce Protection limit? Will my limit be reflected in the balance I receive?
The chart below shows the different ways you can access your Bounce Protection limit and indicates whether or not this limit will be reflected in the balance provided.
|Access Points||Is my Bounce Protection limit available?||Does the balance provided reflect my Overdraft Privilege limit?|
|Writing a Check||Yes||N/A|
|Visa Debit Card||Yes||No**|
**Bounce Protection service will be made available for ATM or everyday debit card transactions upon your request. Call (337) 332-4132 or visit one of our branches to arrange for your ATM or debit card coverage.
What if I go beyond my Bounce Protection limit?
Overdrafts above and beyond your established Bounce Protection limit may result in checks or other items being returned to the payee. The return check charge of $30.00 and a daily continuous overdraft charge of $3.00 per day will be charged each business day beginning the 6th consecutive business day the account remains overdrawn and will be assessed to your account. An NSF notice will be sent to notify you of items paid and/or returned.
How soon can I use my Bounce Protection?
If you are a new customer, you may become available to apply for overdraft privilege service 90 days after your account is opened, assuming your account is in “good standing” as defined in our Bounce Protection Policy.
What are some other ways I can cover overdrafts at FM BANK?
The best way to avoid overdrafts and fees is to keep track of your account balance by entering all checks, debit card purchases, ACH Payments and ATM withdrawals in your check register, reconcile your checkbook regularly and manage your finances responsibly. However, if a mistake occurs, FM BANK offers additional ways to cover overdrafts in addition to Bounce Protection.
|Ways to Cover Overdrafts at FM Bank||Example of Associated Fees*|
|Good Account Management||$0|
|Auto Sweep from Savings or Checking Account||$5 transfer fee|
|Online transfer from Checking or Savings Account||$0 transfer fee|
|Telephone transfer from Checking or Savings Account||$3 transfer fee|
Overdraft charge of $28.00
|*These costs are provided only as examples. Please ask us about our specific products and fees.|
When I call Farmers-Merchants Bank's Touch Tone Phone Telebanking Service (337)332-8454 to get my balance, is my Bounce Protection limit included?
Yes, Telebanking will provide your account balance and available balance which includes the overdraft limit assigned to your account.
If you have additional questions or would like more information, call or come by any of our branch locations today.
Consumer Overdraft Policy
An insufficient balance can result from several events, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you; (3) the return of unpaid items deposited by you; (4) bank service charges; or (5) the deposit of items which, according to the bank’s Funds Availability Policy are treated as not yet available or finally paid. We are not obligated to pay any item presented for payment if your account does not contain sufficient funds.
New accounts become eligible to apply for Bounce Protection after the account is in good standing for 90 days. An account is in good standing if during the 90 consecutive day period immediately preceding the Bounce Protection application, a positive balance in the account was maintained AND account activity (deposits and withdrawals) was consistent with the account holder's statements provided at account opening shown on the customer due diligence questionnaire.
In the normal course of business, all credit transactions are processed first, then withdrawals, ATM withdrawals (smallest to largest dollar), Point of Sale (POS) (smallest to largest dollar), Auto Loan Payments, Overdraft charges, Return Check charges, Checks (check number order), Checks (over-the-counter without numbers will post smallest to largest dollar) and ACH Payments. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, please be aware that the order of item payment may create multiple overdraft items during a single banking day for which you will be charged our overdraft charge of $28.00 for each overdraft item paid and a daily continuous overdraft charge of $3.00 per day will be charged each business day beginning the sixth consecutive business day the account remains overdrawn.
You may opt out of the privilege at any time, but you are responsible for any overdrawn balances at the time of opting out. Normally, we will not approve an overdraft for you in excess of the predetermined amount assigned to your account type. So as not to exceed your limit, please note that the amount of the overdraft plus the bank’s overdraft charge of $28.00 per item will be deducted from the overdraft limit and a daily continuous overdraft charge of $3.00 per day will be charged each business day beginning the sixth consecutive business day the account remains overdrawn.
We may refuse to pay an overdraft item at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft items if your account is not in good standing as defined above, or, if based upon our review of your account management, we determine that you are using Bounce Protection excessively or seem to be using Bounce Protection as a regular line of credit. You will be charged a return check charge of $30.00 for each item returned and a daily continuous overdraft charge of $3.00 per day will be charged each business day beginning the sixth consecutive business day the account remains overdrawn.
You will be promptly notified of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdraft including our overdraft charge of $28.00 and/or a returned check charge of $30.00 that you owe us and any daily continuous overdraft charges that you owe us shall be due and payable upon demand. If no demand is made, payment is due no later than 30 calendar days after the creation of the overdraft. If there is an overdraft on an account with more than one owner on the signature card, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts inclusive of fees.
Bounce Protection should not be viewed as an encouragement to overdraw your account. To avoid fees, we encourage you to keep track of your account balance by entering all items in your check register, reconcile your checkbook regularly, and manage your finances responsibly. To remove this service from your account, please call (337) 332-4132.
Please note that your Bounce Protection limit may be available for each item paid under the limit created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, an automatic bill payment or recurring debit card payments. Also, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.
LIMITATIONS: Bounce Protection is a non-contractual courtesy that is available to individually/jointly owned accounts in good standing for personal or household use. FM Bank reserves the right to limit participation to one account per social security number and to suspend, revoke or discontinue this service without prior notice.