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What you need to know about overdrafts and overdraft fees

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

  1. We have standard overdraft practices that come with your account.
  2. We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.


This notice explains our standard overdraft practices.

Q. What are the standard overdraft practices that come with my accout?
A. We do authorize and pay overdrafts for the following types of transactions:                 

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


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

  • ATM transactions
  • One-time debit card transactions (does not include recurring payments, including utility bills)


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

Q. How are items paid?
A. When multiple items are presented for payment, the system pays ATM and debit card transactions first from low to high dollar values, ACH withdrawals second from low to high dollar values, and checks and ACH converted check items with serial numbers last in serial number order.

For example if these five items were presented on the same day: check number 123 for $25, check number 130 for $295, $20 ATM withdrawal, a debit card purchase for $19.95, and an ACH withdrawal for insurance of $75.

They would be paid in this order: $20 ATM withdrawal, $19.95 debit card purchase, $75 Insurance ACH withdrawal, check number 123 for $25.00 and check number 130 for $295.

Q. What fees will I be charged if STAR pays my overdraft?
A.  Under our standard overdraft practices:

  • We will charge you a fee of $33 each time we pay an overdraft.
  • For retail customers, we limit the total number of overdraft/NSF fees to 6 ($198) per day per account.


Q. What if I want STAR to authorize and pay overdrafts on my ATM and one-time debit card transactions?
A. If you also want us to authorize and pay overdrafts on ATM and one-time debit card transactions on your new checking account, answer "Yes" to that account question.  You can change your selection at any time by calling (888) 395-2447 or visiting starfinancial.com/coverage.