Understanding Overdrafts

Learn more about overdrafts and programs we have in place to help you avoid Insufficient Funds (NSF) and Overdraft Fees.

What is an Overdraft?

An overdraft occurs when you do not have enough money available in your account to cover a transaction, but we pay the transaction as a courtesy for you. However, this means you may incur a fee. We can cover your overdrafts in two ways:

  • We have standard overdraft practices that come with your account
  • We also offer overdraft protection plans, such as a link to an M&T Savings Account, M&T Credit Card, or an Overdraft Line of Credit

Standard Overdraft Practices

At our discretion, we will authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We will not authorize and pay overdrafts for the following types of transactions unless you ask us to:

  • ATM transactions
  • Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay every type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. If an item, such as a check, is returned to the payee, you may be charged a fee.

See below for details on how to change your overdraft election for ATM and everyday debit card transactions.

Standard Overdraft Fees

When an overdraft is paid through the standard overdraft service, standard overdraft fees may be assessed:

1. We will charge you a fee of $38.50 each time we pay an overdraft, unless one of the following exceptions applies:

  • The amount of the item is less than $5
  • The overdraft results from an ATM or one-time debit card transaction from your checking account and you have not elected to permit us to authorize and pay these transactions when you do not have enough money to pay them
  • Your account has already been charged a total of five insufficient funds (NSF) and overdraft fees for items processed for payment on that business day
  • You have a MyWay Banking account

2. In addition to any overdraft fee charged for a particular item, if your checking account is overdrawn, we will charge you a $38.50 extended overdraft fee if you fail to repay all amounts you owe to us by the 7th business day after your checking account became overdrawn or further overdrawn. NOTE: You will not be charged an extended overdraft fee if the overdraft in your account is solely attributable to ATM and one-time debit card transactions and you have not elected to permit us to authorize and pay these transactions when you do not have enough money to pay them.

Change Your Election: ATM & Everyday Debit Card Transactions

If you would like to change your current overdraft election for ATM and everyday debit card transactions, you can change your option at any time by:

Tips for Avoiding Overdraft Fees

Now that you have a sense of how the process works, consider using these tools and services to proactively manage your account and help avoid overdraft charges.

  • M&T Online & Mobile Banking. Regularly review your account balance and the charges you've made on your account to track your spending
  • M&T Alerts. You can set up an alert when your funds reach a certain level, so you know to either transfer money or reduce spending
  • MyWay Banking. There are no overdraft fees and in most circumstances, the account can't be overdrawn
  • M&T Flash Funds™- If your check qualifies, you can select M&T Flash Funds and have immediate access to the funds, for a fee
  • Tips for Managing Your Account. Master the basics of account management, stay in control of your finances and learn more about making deposits and withdrawals, understanding how transactions are processed, and balancing your checking account.
  • Authorization of ATM and Everyday Debit Card Transactions.​ If you have authorized us to pay ATM and everyday debit card transactions when you do not have sufficient funds in your checking account, consider changing your election by updating your overdraft choice onlineprint the form (PDF) or by calling 1-877-378-1289.
  • Overdraft Protection Plans. With an overdraft protection plan, available funds from your M&T Savings Account, M&T Credit Card, or an Overdraft Line of Credit are automatically transferred to your checking account in the event you should overdraw. Although these options may not result in avoiding overdrafts, they may be less expensive than our standard overdraft practices.
  • Personal Checking Account and Common Fees (PDF).

FAQs

Overdraft protection is available either through a link to an M&T Savings Account, M&T Visa® Credit Card or M&T Overdraft Line of Credit. Overdraft Line of Credit and M&T Visa Credit Card are subject to credit approval. Fees may apply to use for overdraft protection services. 
If you do not have sufficient funds available in your account to cover a transaction, the transaction will be declined in most cases. In the case that your account is overdrawn, you will not be charged an overdraft fee.
If selected, your mobile deposit will be immediately available. The fee for this service is 2% of the total check amount ($2 minimum charge). The fee will be deducted from your account following the completion of your deposit. If the deposit is made during our nightly processing, it will not be available to pay debit items that are processed for payment during that night’s processing. However, it would be immediately available for withdrawal.
Overdraft protection is available either through a link to an M&T Savings Account, M&T Visa® Credit Card or M&T Overdraft Line of Credit. Overdraft Line of Credit and M&T Visa Credit Card are subject to credit approval. Fees may apply to use for overdraft protection services. 

Under our standard overdraft practices for M&T personal checking accounts:

1. We will charge you a fee of $38.50 each time we pay an overdraft, unless one of the following exceptions applies:

  • The amount of the transaction is less than $5.00
  • The overdraft results from an ATM or one-time debit card authorization from your checking account, and you have not elected to permit us to authorize and pay these transactions when you do not have enough money to pay them
  • Your account has already been charged a total of five NSF and/or overdraft fees for items processed for payment on that business day

NOTE: These same fees and limits generally apply when we decline to pay items because you do not have sufficient available funds to pay them; however, we do not charge insufficient funds fees on declined ATM and debit card transactions.

2. In addition to any overdraft fee charged for a particular item, if your checking account is overdrawn and you do not repay this amount, we will charge you a $38.50 extended overdraft fee if you fail to repay all amounts you owe to us by the 7th business day after your checking account became overdrawn or further overdrawn.

NOTE: You will not be charged an extended overdraft fee for any account at any time if the overdraft in your account is solely attributable to ATM and one-time debit card transactions and you have not elected to permit us to authorize and pay these transactions when you do not have enough money to pay them.

Fees may be imposed for paying overdrafts created by check, in-person withdrawals, ATM withdrawals or other electronic means. If we pay an overdraft on your account, you must immediately repay us. Whether your overdrafts will be paid is discretionary, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts.

We can cover your overdrafts in two different ways:

  • We have standard overdraft practices that come with your account
  • We also offer overdraft protection plans, such as a link to a Savings Account, M&T Credit Card, or an Overdraft Line of Credit that can provide you flexibility and assurance that your transactions are covered. These options may be less expensive than our standard overdraft practices

3. Insufficient Funds (NSF) Fee:  We will charge you a fee of $38.50 for each item we return due to insufficient funds, unless one of the following exceptions applies:

  • The amount of the item is less than $5.00
  • Your account has already been charged a total of five NSF and overdraft fees for items processed for payment on that business day 

An overdraft fee results when you do not have enough money available in your account to cover a transaction but we, at our discretion, pay it as a service to you. 

An insufficient funds (NSF) fee results when you do not have enough money available in your account to cover a transaction, and we return or decline to pay your transaction.

As a service to you, we authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We will not authorize and pay overdrafts for the following types of transactions unless you ask us to:

  • ATM transactions 
  • Everyday debit card transactions

Under our standard overdraft practices, we pay 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 at the ATM or point of sale or returned to the payee, and you may be charged a fee.

 

 

You should deposit or transfer funds immediately. Be sure to put enough money in your account to cover the current overdraft amount, any associated fees and any other outstanding checks or pending transactions.

If we pay an overdraft on your account, you must immediately repay us. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. 
Unless otherwise specified, all advertised offers and terms and conditions of accounts and services are subject to change at any time without notice. After an account is opened or service begins, it is subject to its features, conditions and terms, which are subject to change at any time in accordance with applicable laws and agreements. Please contact an M&T representative for full details.