Regulation E and Your Debit Card Bounce ProtectionSM Privilege
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What is standard overdraft coverage?
Standard overdraft coverage is the term used to describe account features a bank automatically provides to eligible clients. For Capital City Bank clients, many receive standard overdraft coverage in the form of Bounce ProtectionSM for their personal checking accounts. Bounce ProtectionSM is a non-contractual overdraft privilege limit that is automatically assigned to eligible accounts.
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If I choose to Opt In and continue overdraft coverage, what does that mean?
It means your debit card will work as it currently does. It also means that you give Capital City Bank permission to pay everyday debit card and ATM transactions that cause your account to fall into a negative balance. If paid, a fee of $35 per transaction will be assessed.
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What do you mean by everyday debit card transactions?
Anytime you use your debit card for a one-time transaction it is considered an everyday debit card purchase. Some examples
include:
include:
- Grocery Store
- Doctor’s Office
- Gas Station
- Dry Cleaner
- Pharmacy
- Restaurant
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Does this change apply to checks or recurring payments from my account?
No, the new regulation only applies to everyday debit card and ATM transactions. Automatic bill payments, checks and other
transactions made using your checking account number are not affected by these new rules. We may authorize and pay
overdrafts on these transactions and fees may be incurred. Capital City Bank pays overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an
overdraft, your transaction will be declined.
transactions made using your checking account number are not affected by these new rules. We may authorize and pay
overdrafts on these transactions and fees may be incurred. Capital City Bank pays overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an
overdraft, your transaction will be declined.
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What if I Opt Out or do not continue overdraft coverage?
If you Opt Out your coverage will discontinue and any everyday debit card or ATM transaction that would result in an overdraft
of your account will be declined at the point of sale.
of your account will be declined at the point of sale.
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How long do I have to decide to continue overdraft coverage?
The Federal Regulation went into effect on August 15, 2010, for existing accounts opened before July 1, 2010. After that date you are no longer covered unless you chose, or Opted In, to continue overdraft coverage. However, you can select to reinstate overdraft coverage at any time.
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May I change my decision to continue this service?
Yes. You can change your decision to have overdraft coverage
at any time.
at any time.
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Does overdraft coverage apply to Capital City Bank clients only?
No. Every bank and every consumer bank client is affected by the new Federal Regulation.
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Is anyone exempt from making a choice regarding standard overdraft coverage?
Business clients will continue to have overdraft coverage and will incur applicable fees. All consumer checking account customers at any bank are impacted by this new regulation. Consumers must select to continue overdraft coverage or they will no longer be covered.
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Is there a fee to continue or reinstate standard overdraft coverage?
No. There is no fee to continue or reinstate this service and no fee if you never use your Bounce ProtectionSM privilege; however, if you continue overdraft coverage and an item is paid resulting in an overdraft of your account, a fee of $35 per transaction will be assessed.
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