M&T Bank : Understanding Overdrafts
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Understanding Overdrafts
Home Account Basics
Account Management
Understanding Overdrafts Overdraft Protection Plans

We understand that there is a lot of information to keep track of when it comes to banking these days. At M&T, we give you the tools to make informed decisions on how to manage your accounts and offer plans and services so that you can choose what is right for you.

What is an overdraft?

An overdraft occurs when you do not have enough money available in your account
to cover a transaction, but we pay it anyway as a service to you. However, this means you may incur a fee.

We can cover your overdrafts in two different ways:

Dollar Sign We have standard overdraft practices that come with your account.
 
Overdraft Protection Umbrella We also offer overdraft protection plans, such as a link to a savings account, M&T credit card, or an overdraft line of credit that can provide you flexibility and assurance that your transactions are covered. These options may be less expensive than our standard overdraft practices.

What are the standard overdraft practices that come with my checking account?

As a service to you, we authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

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

  • ATM transactions
  • Everyday debit card transactions

Under our standard overdraft practices, 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 at the ATM or point of sale or returned to the payee, and you may be charged a fee.

Overdraft and NSF fees

What should I know about overdraft fees and insufficient funds fees?

  • An overdraft fee results when you do not have enough money available in your account to cover a transaction but we, at our discretion, pay it as a service to you. 
  • An insufficient funds (NSF) fee results when you do not have enough money available in your account to cover a transaction and we return or decline to pay your transaction.

How much will I be charged for overdraft or NSF fees on my checking account?

Under our standard overdraft practices for M&T personal checking accounts: 

1. We will charge you a fee of $38.50 each time we pay an overdraft, unless one of the following exceptions applies:

  • The amount of the transaction is less than $5;
  • The overdraft results from an ATM or one-time debit card transaction from your checking account and you have not elected to permit us to authorize and pay these transactions when you do not have enough money to pay them; or
  • Your account has already been charged a total of 5 NSF and overdraft fees for items processed for payment on that business day;

(NOTE: These same fees and limits generally apply when we decline to pay items because you do not have sufficient available funds to pay them; however, we do not charge insufficient funds fees on declined ATM and debit card transactions.)

2. In addition to any overdraft fee charged for a particular item, if your checking account is overdrawn and you do not repay this amount, we will charge you a $38.50 extended overdraft fee if you fail to repay all amounts you owe to us by the 5th business day after your checking account became overdrawn or further overdrawn.

(NOTE: You will not be charged an extended overdraft fee for any account at any time if the overdraft in your account is solely attributable to ATM and one-time debit card transactions and you have not elected to permit us to authorize and pay these transactions when you do not have enough money to pay them.)

Fees may be imposed for paying overdrafts created by check, in-person withdrawals, ATM withdrawals or other electronic means. If we pay an overdraft on your account, you must immediately repay us. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts.

What should I do if I overdraw my account?

  • You should deposit or transfer funds immediately. Be sure to put enough money in your account to cover the current overdraft amount, any associated fees, and any other outstanding checks or pending transactions.

Unless otherwise specified, all advertised offers and terms and conditions of accounts and services are subject to change at any time without notice. After an account is opened or service begins, it is subject to its features, conditions, and terms, which are subject to change at any time in accordance with applicable laws and agreements. Please contact an M&T representative for full details.

 
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