Overdraft Privilege Service: What You Need to Know

Overdraft Privilege Service

Learn all about our Overdraft Privilege Service.

Have you ever had a check denied at checkout? Or dealt with the embarrassment (and expense!) of having a check or automatic payment returned for non-sufficient funds?

We can’t guarantee that these things will never happen to you. But we do offer an Overdraft Privilege Service to help ease the burden.

Keep reading to learn about this service and how it can help you!

What is the Overdraft Privilege Service?

If your account qualifies, Persons Banking Company will consider (without obligation on our part) paying for items for which your account has insufficient or unavailable funds.

 This means items unpaid will not be returned automatically.

Transactions That May Qualify for Overdraft Privilege

If you …

  • Write a check, swipe your debit card, or initiate an electronic funds transfer in an amount that exceeds the amount of funds available in your account.
  • Deposit funds or other items into your account and the item is returned unpaid, which causes a negative balance in your account once your balance is reduced by the amount of the returned check.
  • Have inadequate funds in your account when we assess a fee or service charge.

You can also qualify for Overdraft Privilege if you start a transaction before funds deposited into your account are “available” or “finally paid,” according to the Persons Banking Company Funds Availability Policy.

For example, if you deposit a check into your account, the proceeds of that check may not be available to you for up to seven days after you deposit the check.

If you do not have sufficient funds in your account–independent of the check–to cover the transaction, you will incur an overdraft.

The Overdraft Privilege Service applies to a variety of transactions, including:

  • Checks,
  • Automatic bill payments
  • ATM transactions
  • Everyday debit transactions

However, we will not include ATM and everyday debit card transactions without first receiving your affirmative consent to do so.

Is Participation in the Overdraft Privilege Service Mandatory?

No. You may opt out anytime by notifying one of our service representatives. 

Furthermore, you may revoke your affirmative consent to have ATM and everyday debit card transactions considered for payment under Overdraft Privilege without removing other items from the service.

Is Persons Banking Company Obligated to Fulfill the Overdraft Privilege Service?

No. We retain full discretion to decline to pay any item under the Overdraft Privilege Program. 

This means we can refuse to pay any overdraft for any reason. Even if we decided to pay an overdraft item, absent an agreement to the contrary, such payments do not create any duty to pay future overdrafts.

If we do not authorize to pay an overdraft, your transaction will be declined and we may assess non-sufficient funds fees on your account in accordance with your account agreement and the fee schedule in effect at the time of the overdraft.


For each overdraft we pay, we will charge the standard per item overdraft fee set forth in our fee schedule (currently $30.00). 

We limit the number of overdraft charges to five per business day for consumer accounts. 

We will notify you by mail if we pay or return any insufficient or unavailable funds items on your account; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts, including our fees, are due and payable immediately or on demand.

How to Avoid Overdraft Fees

  • Check your account balance regularly.
  • “Cushion” your account with a minimum balance.
  • Pay with cash.
  • Use direct deposit.

You can also avoid fees by linking another Persons Banking Company account–such as a savings account–to your checking account.

Accounts Eligible for Overdraft Privilege

Overdraft Privilege is generally limited to an $500 overdraft (negative) balance for eligible personal checking accounts; or a $1,000 overdraft balance for eligible business accounts. 

Overdraft Privilege is usually only extended to an account in good standing, which means the account:

  • Has been open for at least 60 days
  • Has deposits totaling at least $400 or more within each 30 day period
  • Demonstrates consistent deposit activity
  • Is not subject to any legal or administrative order or levy, such as bankruptcy or tax lien.

Additionally, the account owner must be current on all loan applications with Persons Banking Company.

Related: Small Business Checking at Persons Banking Company

To Sum it Up

If your account qualifies for our Overdraft Privilege Service, Persons Banking Company will consider (without obligation on our part) paying for items for which your account has insufficient or unavailable funds.

This means items unpaid will not be returned automatically.

Remember: overdrafts should not be used to pay ordinary

or routine expenses, and you should not rely on overdrafts as a means to cover these expenses.

If at any time you feel you need help with your financial obligations, please contact one of our customer service representatives at your local branch office.

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