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Courtesy Coverage

What you need to know about overdrafts and overdraft fees.
As a service to account holders and to help avoid the significant fees that may be charged by third parties for unpaid items, STAR Financial Bank strives to pay account holders' overdrafts when possible.  It is the obligation of STAR to operate in accordance with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.  A continual evaluation of all accounts is performed to determine if it is financially sound to honor items that may cause an overdraft situation for a particular account. 

The criteria evaluated are:

        • Age of account
        • Deposit balances
        • Deposit regularity
        • Previous overdraft activity
        • Account status relating to any legal or administrative order or levy
        • Status of loan obligations with the institution

STAR Financial Bank is not obligated to cover any items, defined as checks, ATM withdrawals, Point of Sale (POS) or debit card transactions, preauthorized debits or any other electronic transactions, presented for payment if your account does not contain sufficient collected and/or available funds.  Any discretionary courtesy payment by STAR Financial Bank of any non-sufficient fund (NSF) check or checks (or other items) does not obligate the bank to pay any additional non-sufficient fund check or item or to provide prior written notice of its decision to refuse to pay any additional non-sufficient fund check or item.

Should a check be submitted or a transaction be made for funds exceeding what is available in the account, pursuant to the Depositor's Account Agreement, the account holder is responsible for the amount of any overdraft and applicable fees immediately.  It is the obligation of the account holder to keep your account in good standing with STAR Financial Bank and to bring your account to a positive balance immediately should an overdraft situation occur, without notice or demand from the institution.

What are the standard overdraft practices?
We may 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.

How are items paid?
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.

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

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

A $33 fee is assessed for each item, whether the item is paid or returned.  The total of your STAR courtesy Coverage overdraft balance, including any and all bank fees and charges, is due and payable upon demand, and you will continue to be liable for such amounts as described in the deposit account agreement. 

What if I want STAR to authorize and pay overdrafts on my ATM and one-time debit card transactions?
If you also want us to authorize and pay overdrafts on ATM and one-time debit card transactions, call (888) 395-2447.

Is this a loan?
No, it's a courtesy that incurs a fee.  And, it's a privilege which can be withdrawn at any time.

How will I know when I'm overdrawn?
You will be notified by mail or e-mail each time your account is overdrawn.  Until your account is brought back into a positive balance, you will receive periodic reminders of your overdraft status.

When do I have to repay the overdraft?
STAR encourages you to bring your account back into a positive balance as soon as possible, but no longer than 30 days; the amount of any overdraft plus the overdraft fee is due and payable within that time.  However, STAR can demand repayment at any time we feel it's necessary, and any deposits you make will first be applied to the overdrawn balance.

Am I required to have Courtesy Coverage?
No, if you choose to decline this service please call Customer Service or visit any convenient STAR Financial Bank location. 

Are there other options available to me?
STAR also offers overdraft protection plans, such as a link to a savings account or second STAR checking account which may be less expensive than our standard overdraft courtesy coverage.  We have other products that we would like to share with you to help in managing your accounts and we'd be happy to discuss those with you.  For more information, we encourage you to contact Customer Service or visit any STAR Banking Centers. 


STAR Courtesy Coverage is a non-contractual service provided by STAR Financial Bank, which can be withdrawn at any time by the bank.

Certain restrictions may apply.