At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned due to insufficient funds can be a costly, inconvenient and potentially embarrassing experience.
At McClain Bank, we do not encourage overdrafts. To avoid fees, we encourage you to manage your finances responsibly by keeping track of your account balance and reconciling it regularly. However, we want to save you from the additional merchant fees and possible damage to your credit history that might result if a check is returned.
That's why we provide Bounce Protection, a special overdraft service for McClain Bank's customers.
FAQs on Bounce Protection
What is bounce protection and how does it work?
Bounce Protection is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit.
Your Bounce Protection limit may be available for checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic (ACH) payment transaction, automatic bill payment or recurring debit card payment. If you request us to do so (opt in), we may authorize ATM transfers or withdrawals and everyday debit card purchases using your available balance and your Bounce Protection limit. For Non-Consumer (Business) accounts the limit may be available for ATM and everyday debit card transactions with no action required.
There are several ways your account can become overdrawn, such as (1) the payment of checks, electronic funds transfer or other withdrawal requests; (2) payments authorized by you (i.e. debit card at point of sale); (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.
As long as you maintain your account in "good standing," we may approve your overdrafts within your unused Bounce Protection limit as a non-contractual courtesy. For Bounce Protection 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) have no legal orders, levies or liens against your account.
McClain Bank reserves the right to limit participation to one account per household/business or to suspend, revoke, or discontinue this service without prior notice.
What if i go beyond my Bounce protection limit?
Normally, we will not approve an overdraft for you in excess of the predetermined limit assigned to your account. So as not to exceed your limit, please remember that the amount of the overdraft plus our paid item overdraft fee of $28.00 for each item will be deducted from the Bounce Protection limit. Overdrafts above and beyond your established Bounce Protection limit may result in checks or other items being returned to the payee. You will be charged a returned item insufficient fee of $28.00 for each item returned. Returned items may be presented for payment by the payee or their financial institution multiple times, which may result in multiple returned item insufficient fees.
An overdraft/insufficient notice will be sent to notify you of items paid and/or returned.
how soon can i use my bounce protection and how much does it cost?
At the Bank's discretion, Bounce Protection will be activated on a new account the following business day after the account is open. Initially, a reduced limit will be available for the first 30 calendar days. After 30 calendar days, the account will default to the appropriate limit approved. Once your Bounce Protection limit is available to you, it may continue to be available provided you maintain the account in “good standing” as defined in the Bounce Protection Customer Policy below.
There is no additional cost associated with Bounce Protection unless you use it. If you do use the Bounce Protection limit, you will be charged our paid item overdraft fee of $28.00 for each overdrawn item created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, automatic bill payment, or recurring debit card payment.
If you request us to do so (opt in), we may authorize ATM transfers or withdrawals and everyday debit card purchases by using your available balance and your Bounce Protection limit.
Your balance at the time these transactions hard-post will determine the overdraft status and the assessment of fees. Other transactions initiated by you, or a delay in processing authorized transactions by the merchant, may result in previously authorized transactions posting against an insufficient balance. A paid item overdraft fee of $28.00 will be charged for each ATM or everyday debit card transaction that posts against insufficient funds. Once opted in, you may revoke your authorization at any time by contacting us at (405) 527-6503.
For Non-Consumer (Business) accounts, ATM and debit card transactions will be handled as described above with no action required on your part.
In the normal course of business, we post all credits to an account first then proceed to post debits in the following order arranged in amounts from low to high: 1. checks presented in-person, 2. debit card transactions and ATM withdrawals, 3. internal transfers and loan payments, 4. outgoing wire debits, 5. automated clearing house (ACH) debits (including electronically converted checks), 6. all other checks. We reserve the right to change this order of payment without prior notice to the customers. Also, the order we pay your items may create multiple overdraft items during a single banking day and you will be charged our paid item overdraft fee of $28.00 for each overdraft item paid.
Multiple paid items will result in multiple fees. For example, three paid items in one day will result in $84.00 in paid item overdraft fees. To help you manage your account, 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. The total overdraft fees charged per account, in any one business day, will not exceed 5 overdraft fees ($140.00). If, after end-of-day processing, an account is overdrawn less than $10.00, no overdraft fee will be charged.
What is my bounce protection limit?
Please contact Customer Service at (405) 527-6503 for Bounce Protection limit information.
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 McClain Bank informing you that your Bounce Protection limit has been suspended and additional items will be returned. If, thereafter, your account has not been brought to a positive balance, we may suspend or charge off your account and report negative information to the credit bureaus. We will pursue all legal remedies and collection actions available under applicable law. Unless we advise you differently or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.
What are some of the ways i can access my bounce protection limit?
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 Available? | Does the balance provided reflect my Bounce Protection limit? |
|---|---|---|
|
Teller
|
Yes | No |
| Writing a Check | Yes | N/A |
| Debit Card (recurring) | Yes | N/A |
| Debit Card (everyday) | No* | N/A |
| ATM Withdrawal | No* | No |
| ACH - Auto Debit | Yes | N/A |
| Online Banking | Yes | No |
| Bill Pay | Yes | N/A |
| Telephone Banking | Yes | No |
* Bounce Protection service will be made available for ATM or everyday debit card transactions on personal accounts upon your request. Call (405)-527-6503 or visit one of our branches to arrange for your ATM and debit card coverage. No action is required for business accounts.
What if i am having trouble repaying my bounce protection?
Please contact us at (405)-527-6503 if you: (1) do not believe you will be able to bring your account to a positive end-of-day balance within the required time period; (2) find that you are using Bounce Protection more often than you intended; or (3) don’t understand why your account becomes overdrawn. We would like to discuss your situation with you.
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 returned item insufficient fee of $28.00 for each item returned.
Following regulatory guidance, we will contact you if you are paying multiple overdraft fees (i.e., more than six fees in a rolling 12-month period), to provide possible alternatives to Bounce Protection that may better meet your short term credit needs. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure Bounce Protection is still the most appropriate option available to you for covering your short term credit needs.
How do i know when i use the overdraft limit?
You will receive an overdraft notice each time items are paid, including fees. You will need to subtract the total fees when balancing your checkbook.
We have no obligation to notify you before we pay or return any item. The amount of any overdraft including our paid item overdraft fee of $28.00 and/or a returned item insufficient fee of $28.00 that you owe us is due and payable upon demand even if we do not ask you for payment. You must repay us no later than 30 calendar days after the creation of the overdraft. If there is more than one owner on the account, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts including all fees charged.
What are some other ways i can cover overdrafts at mcclain bank?
The best way to avoid overdrafts and fees is to keep track of your account balance by entering all checks, debit card purchases and ATM withdrawals in your check register, reconcile your check book regularly and manage your finances responsibly. Other suggestions may be found at https://www.fdic.gov/moneysmart and https://www.consumerfinance.gov/.
McClain Bank offers additional ways to cover overdrafts in addition to Bounce Protection.
| Ways to cover overdrafts at McClain Bank |
Example of associated
rates and fees
|
|---|---|
| Good account management | $0 |
| Link to savings account | $5 transfer fee* |
| Bounce Protection | paid item OD fee of $28.00 for each item |
This information is effective as of December 2019 and is provided as examples.
*The number of transfers allowed from a savings account each month may be limited and additional fees/consequences for exceeding this limit may apply. Please ask us about our current specific products, rates and fees.
what if i do not want to have bounce protection on my account?
If you would like to revoke your previous authorization for ATM and debit card transaction coverage, or have this service removed entirely from your account, please call (405) 527-6503. While you may opt out of the privilege at any time, you are responsible for any overdrawn balances at the time of opting out.
Bounce Protection Customer Policy
There are several ways your account can become overdrawn, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you (i.e. debit card at point of sale); (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.
While we are not obligated to pay any item presented for payment if your account does not contain enough funds, as long as you maintain your account in “good standing,” we may approve your overdraft items within your unused Bounce Protection limit as a non-contractual courtesy. For Bounce Protection 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) have no legal orders, levies or liens against your account.
In the normal course of business, we post all credits to an account first then proceed to post debits in the following order arranged in amounts from low to high: 1. checks presented in-person, 2. debit card transactions and ATM withdrawals, 3. internal transfers and loan payments, 4. outgoing wire debits, 5. automated clearing house (ACH) debits (including electronically converted checks), 6. all other checks. We reserve the right to change this order of payment without prior notice to the customers. Also, the order we pay your items may create multiple overdraft items during a single banking day and you will be charged our paid item overdraft fee of $28.00 for each overdraft item paid.
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 limit assigned to your account. So as not to exceed your limit, remember that the amount of the overdraft plus the bank’s paid item overdraft fee of $28.00 per item will be deducted from the Bounce Protection limit.
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 returned item NSF fee of $28.00 for each item returned. Returned items may be presented for payment by the payee or their financial institution multiple times, which may result in multiple returned item NSF fees.
We will notify you promptly of any non-sufficient fund items paid or returned, however we have no obligation to notify you before we pay or return any item. The amount of any overdraft including our paid item overdraft fee of $28.00 and/or a returned item NSF fee of $28.00 that you owe us is due and payable upon demand even if we do not ask you for payment. You must repay us no later than 30 calendar days after the creation of the overdraft. If there is more than one owner on the account, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts including all fees charged.
Bounce Protection should not be viewed as an encouragement to overdraw your account. To avoid fees, we encourage you to manage your finances responsibly by keeping track of your account balance and reconciling it regularly. Balances provided do not include the Bounce Protection limit.
Your Bounce Protection limit may be available for each item created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, automatic bill payment, or recurring debit card payment.
If you request us to do so (opt in), we may authorize ATM transfers or withdrawals and everyday debit card purchases by using your available balance and your Bounce Protection limit. Your balance at the time these transactions post will determine the overdraft status and the assessment of fees. Other transactions initiated by you, or a delay in processing authorized transactions by the merchant, may result in previously authorized transactions posting against an insufficient balance. A paid item overdraft fee of $28.00 will be charged for each ATM or everyday debit card transaction that posts against insufficient funds.
For Non-Consumer (Business) accounts, ATM and debit card transactions will be handled as described above with no action required on your part.
Multiple paid items will result in multiple fees. For example, three paid items in one day will result in $28.00 in paid item overdraft fees. To help you manage your account, 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.
If you would like to revoke your previous authorization for ATM and debit card transaction coverage, or have this service removed entirely from your account, please call (405) 527-6503.
LIMITATIONS: Bounce Protection is a non-contractual courtesy that is available to individually/jointly owned accounts in good standing for personal or business use. McClain Bank reserves the right to limit participation to one account per household or business and to suspend, revoke, or discontinue this service without prior notice. If your limit is suspended, unless we notify you otherwise or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.