An overdraft occurs when the available balance in your account is insufficient to cover a transaction, but we pay it anyway. Specifically, the available balance is your actual balance less: (1) holds placed on deposits, (2) holds on debit card or other transactions that have been authorized but are not yet posted, and (3) any other holds such as court order holds. An example of how holds can affect the available balance is illustrated in the example below:
Assume that Mark's actual and available balance are both $100, and he initiates a debit card transaction at the grocery store for $20. A hold is placed on his account, so his available balance drops to $80. His current balance (also referred to as actual balance or posted balance) will remain at $100 until the merchant grocery store finalizes the transaction by sending it to Avaidian for settlement. In the meantime, assume a check he previously wrote for $90 clears. Because the available balance is only $80, his account will be overdrawn by $10, even though the current balance is still $100. Mark may be subject to possible fees, thus reducing his balance even further.
We can cover your overdrafts in two different ways:
- We have standard overdraft practices that come with your account.
- We also offer overdraft protection plans, such as a link to a savings account and overdraft loan protection, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.
What are the standard overdraft practices that come with my account?
We DO strive to 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 (see below):
- ATM transactions
- Everyday debit card transactions, such as one-time debit card purchases made at retail or grocery stores
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 don’t authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged if Avadian pays my overdraft?
Under our standard overdraft practices:
- We will charge you a fee of $30 each time we pay an overdraft.
- There is no limit on the total fees we can charge you for overdrawing your account. Furthermore, we may charge multiple fees for the same transaction if that transaction is re-presented for payment and the available balance is insufficient.
What if I want Avadian to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call 1.888.AVADIAN )(1.888.282.3426) or visit a branch to request a form.