Overdraft Services Consent FAQ
- What has changed with Regulation E related to overdraft services?
As of August 13, 2010, consumers who have a checking or savings account and have not consented ("opted in" or said "yes") to allowing their bank to authorize and pay ATM and everyday debit card transactions into overdraft will have these transactions declined if there are not sufficient funds to cover them.
Note: "Everyday" debit card transactions are typical transactions most people make in daily shopping. "Recurring" debit card transactions, not affected by the Reg E changes, are automatic withdrawals authorized on accounts using a debit card, such as a monthly car payment.
The Regulation E overdraft change applies to ATM and everyday debit card transactions only.
- What happens if I do consent (i.e., give the bank permission to authorize and pay ATM and everyday debit card transactions)? How will it work when I do not have sufficient funds in my deposit account?
If you do not have enough money in your account and attempt to make an ATM withdrawal or money transfer, or an everyday debit card transaction, KeyBank would have your permission to let that transaction go through, at our discretion. Overdraft fees likely will apply. For example, you may want to use your debit card at the grocery store. The total charge for your groceries is $120, but there is only $20 in your account. At our discretion, KeyBank would have your permission to let that transaction go through. This would overdraw the account by $100 and an overdraft fee likely will be charged, but the transaction could be completed.
To minimize fees and provide additional coverage for your checking account, take advantage of one of our Overdraft Protection options.
- What happens if I do not consent (i.e., do not give the bank permission to authorize and pay ATM and everyday debit card transactions)? What happens when I do not have sufficient funds in my deposit account?
If you do not have enough money in your account and attempt to make an ATM withdrawal or money transfer, or an everyday debit card transaction, KeyBank would NOT have your permission to let that transaction go through.
For example, if you are at the grocery store and want to spend $120 but only have $20 in your bank account, the debit card transaction would be declined. You would need to find another way to complete the transaction. If you don't have some form of overdraft protection, you won't be able to complete that transaction and will be declined at the point of sale.
- How do I consent?
You may consent through one of the following options:
- How can I get the information I need to make the right decision?
We are always available to discuss your current needs and help you get the most out of your banking relationship. We have tools and resources – such as Online Banking, Account Alerts, and several Overdraft Protection options – to help you manage your accounts. You can call 877-527-6340 or go to the nearest branch to start a conversation.
- Where can I get additional information on Regulation E and overdraft fees?
The Federal Reserve Board has posted consumer information, New Overdraft Rules for Debit and ATM Cards, on its website.
The American Bankers Association offers valuable information on Eight Ways to Avoid Overdraft Fees.
Or you may email questions to the American Bankers Association Education Foundation at firstname.lastname@example.org.
Consent Options and Additional Detail
- Why would I want to consent?
Overdraft fees can be expensive and can add up if there are multiple overdraft transactions performed before the account is sufficiently funded. However, in certain situations you may find you want the bank, at its discretion, to pay your ATM or everyday debit card transactions into overdraft. Potential benefits of consenting include:
- Emergency Back-up or Safety Net. You don't overdraw your account very often, but would like the bank to pay ATM and everyday debit card transactions in case an emergency situation arises. Imagine, for example, running out of gas and having your ATM or debit card transaction denied when you attempt to purchase gas because you did not "consent" to receiving overdraft services on ATM and everyday debit card transactions.
- Flexibility. You overdraw your account on a more regular basis but find you have limited access to other alternative sources of money to meet your needs.
- Convenience. You find overdrawing your account to be a matter of convenience.
- If I have consented to standard overdraft services, will KeyBank always authorize and pay my ATM and everyday debit card transactions if I do not have sufficient funds?
- KeyBank pays overdrafts at our discretion, which means KeyBank does not guarantee that it will always authorize and pay every type of transaction. However, you may wish to check out our Overdraft Protection options to find credit, savings, or checking accounts that can help provide coverage when there are insufficient funds in your checking account.
- When will my selection be effective?
- Your selection will be effective the next business day after KeyBank receives your selection.
- What if I make my consent selection on a Saturday or Sunday?
- If you make your selection on a Saturday or Sunday, KeyBank will consider it to be received the next business day, Monday, and your selection will be effective Tuesday. (If Monday is a holiday, your selection will be received on Tuesday and will become effective Wednesday.)