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Overdraft Protection (Bounce Protection)
Porter Bank may provide Overdraft Protection with respect to your checking accounts.
If you write a check or initiate an electronic funds transfer, such as an ATM, debit card or other transaction that will overdraw your account if paid, we will either pay the overdraft, return the item, or debit unpaid for nonsufficient funds. If we pay the overdraft, this service is called bounce protection.
Bounce protection can be a valuable service because it protects your reputation and avoids the additional fee that often is charged by the payee when an item is returned NSF. Your reputation is protected because for example, the payee will not know that there were insufficient funds to cover the item, and there won’t be a return NSF to report to a consumer reporting agency. If we pay the overdraft we may charge you a fee, typically called an overdraft fee. If we return the item NSF we may charge you a fee, typically called an NSF fee.
Overdraft fees can be substantial, especially in relation to multiple small overdrafts. Similarly, our NSF fees and the fees imposed by payees when items are returned NSF can be substantial. Thus, we discourage the intentional and routine writing of checks or initiating of electronic funds transfers or other transactions that will overdraw your account if paid. Bounce Protection should be used only for occasional and inadvertent overdrafts.
If more than occasional or inadvertent use of Bounce Protection is anticipated, we believe you should consider alternatives such as linked accounts to avoid overdrawing your account. Under a linked account, your checking account would be linked to another account, such as a savings account, to automatically transfer funds from the other account to the checking account as needed to avoid overdrafts. We encourage you to inquire at any one of our branches about the alternatives we offer.