Overdrafts - Opt In/Opt Out

Farmers & Merchants State Bank Standard Overdraft Practices

An overdraft occurs when you do not have enough money in your checking account to cover a transaction, and it is paid anyway. We can cover your overdrafts in two different ways:

At Farmers & Merchants State Bank ComfortZone Overdraft Practices (Our Standard Overdraft Practices) come with your checking account. It offers you some great advantages:

  • Convenience – May allow your debit card purchases to be approved when you have insufficient funds.
  • Flexibility – May allow you to make a purchase even if you can’t make a deposit or transfer money until later that same business day.
  • Cost Effective – Avoid merchant return check fees and related late charges.
  • A Safety Net – May cover you if you have an unexpected expense.

We also offer Overdraft Protection Plans, such as a link to a savings account, which may be less expensive than our standard overdraft practices. To learn more, ask any of our Universal Bankers.

This notice explains our ComfortZone Overdraft Practices.
We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number.
  • Automatic bill payments.
  • Recurring debit card transactions.

We do not authorize and pay overdrafts for any ATM, one-time debit card purchase, telebanking or electronic banking. However, due to the timing of the processing of transactions these items may result in an overdraft in your checking account. You have the option to authorize us to overdraw your account through any one-time debit card purchase . If you prefer not to authorize us to pay overdrafts resulting from debit card purchase, then these transactions will be declined.

The payment of overdrafts is a discretionary courtesy or service and not a right of yours nor an obligation on our part. 

ComfortZone Overdraft limits are $500; however, overdraft fees may cause the overdraft balance to exceed the $500. Farmers & Merchants State Bank is not obligated to pay any item presented for payment if your account does not contain sufficient funds. Items considered in our decision include, but are not limited to the following:

  1. Your checking account has been open for at least 90 calendar days with no overdraft items.
  2. You are not 30 calendar days past due on any loan obligation to the Bank.
  3. You bring your checking account to a positive balance (not overdrawn) at least once every 30 calendar days,
  4. You are overdrawn for more than 30 consecutive days, and
  5. Your checking account is not the subject of any legal or administrative order or levy.

Normally, we will not approve an overdraft in excess of your overdraft limit plus any overdraft handling charges. We may refuse to pay an overdraft for you at any time, even though we may have previously paid overdrafts for you. You will be notified by mail of any overdraft items paid or returned; however, we have no obligation to notify you before we pay or return any items. The amount of any overdraft plus our overdraft fee that you owe us shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than one owner on the signature card, each owner, and agent if applicable, drawing/creating the overdraft, shall be jointly and severally liable for such overdraft, plus our overdraft fee.

You may prefer not to have the $500 ComfortZone limit. If you tell us, we will remove the ComfortZone limit from your checking account in which case items presented that cause overdrafts to occur may be returned and a return item fee may be charged. To decline ConfortZone fill out our online formFarmers & Merchants State Bank overdraft fee schedule is:

  • $25.00 for all items returned and/or paid, maximum of $125.00 per day
  • $50.00 for checking accounts overdrawn for 45 consecutive days

You have a choice to make about how to manage overdraft coverage using your debit card.

Regulations imposed by Congress will require us to decline your one-time debit card transactions unless you “opt-in” to our courtesy overdraft practices. We offer this service as a safety net for our customers and we may charge our customary overdraft fee of $25.00 for the service. To opt-in or opt-out, please fill out our online form.

For more information about Opt-In or Opt-Out please call us toll-free at 888-478-3007.