Overdrafts - what you need to know for your personal checking account
Here at M&T, we understand things don't always go as planned. We offer many options to avoid fees when you are low on funds. With only one overdraft fee assessed per day, getting things back in line should be much easier.
What happens when you overdraw your personal checking account
At M&T's discretion, we will authorize and pay an overdraft for a transaction that overdraws your account using checks, other transactions that use your checking account number, or automatic bill payments. We do not authorize and pay overdrafts for ATM or everyday debit card transactions unless you ask us to.
M&T charges an overdraft fee of $15 per day (maximum of one fee per day) on your personal checking account, even if multiple transactions overdraw your account. You will not be charged if:
- The amount of the item is less than $5
- Your account has already been charged an overdraft fee for items processed for payment on that business day
- The overdraft resulted from an ATM or everyday debit card transactions from your checking account, and you have not elected for us to authorize and pay these transactions.
- The overdraft results from an ATM or one-time debit card transaction that was originally authorized while your available balance was sufficient to pay the transaction, based on the final amount of the transaction we receive from the merchant.
- You have a MyWay Banking account (no overdraft fees are assessed on this account and it is not eligible to be linked to an Overdraft Line of Credit).
- Even if some transactions are exempt from an overdraft fee on a particular day, you may nonetheless be charged an overdraft fee if other items we paid that day reduced your available balance to a negative amount or further decreased an already negative balance to a larger negative amount.
Understanding Overdraft - FAQ
What is an overdraft?
An overdraft occurs when you do not have enough available funds in your account to cover a transaction, but, in our discretion, we pay the transaction as a courtesy for you. However, this means you may incur a fee.
What is NSF (non-sufficient funds)?
An NSF occurs when you don’t have enough money in your account to pay for an item and we decline the transaction. In that case, you will not be charged a fee.
How do debits and credits post to my account?
When managing your finances, it may be helpful to understand our posting order. The order of when banks post transactions can affect your account balance and whether or not you are charged fees, such as an overdraft fee. Generally:
- M&T posts credits before debits in a given day
- M&T posts items chronologically, if that information is available
- If it is not clear what the chronological order is, M&T will post debits in lowest to highest order
- Fees are posted last in a given day