Overdraft Privilege

Overdraft Privilege Consumer Disclosure & Service Description

Security Bank of Kansas City ("Bank, we, us, or our") offers Overdraft Privilege Service (“ODP, or Service”). If your account qualifies for ODP, we will consider, without obligation on our part, paying items for which your account has insufficient or unavailable funds, instead of automatically returning those items unpaid. ODP may save you potential additional fees that can occur if your items are returned, or embarrassment if transactions are declined. 

We provide ODP in two ways:

• Standard ODP: Automatic enrollment is based on eligibility criteria. 
• Enhanced ODP: Requires your affirmative consent (“opt-in”) to include coverage for ATM and everyday debit card transactions. 

This document explains how ODP operates.

Account Eligibility

ODP is available to personal checking accounts used primarily for personal, family or household purposes, (excluding New Leaf Account, Money Market, Health Savings Account, and grandfathered Veterans Checking) and is usually extended only to accounts that are maintained in good standing. An account in good standing exhibits, but is not limited to, the following characteristics for initial enrollment: 

• The account has been open for at least thirty (30) days; and
• The account has received aggregate deposits totaling at least $800.00; and
• The account owner(s) are current on loan obligations with us; and
• The account is not subject to any legal or administrative order or levy, such as bankruptcy or tax lien.

To retain the Service, the account must remain in good standing which includes, but is not limited to:

• The account demonstrates consistent deposit activity; and
• The account owner(s) are current on loan obligations with us; and
• The account is not subject to any legal or administrative order or levy, such as bankruptcy or tax lien.

Additionally, we may, at our sole discretion, exclude certain fiduciary and restricted accounts, limit the number of accounts eligible for ODP to one account per household or taxpayer identification number, or exclude if the primary account holder is not at least 18 years of age.

ODP Limit

This discretionary service will generally be limited to an $800.00 overdraft (negative) balance for eligible personal checking accounts. The amount considered against the limit will include our Overdraft Fee and Returned Item Fees for non-sufficient funds, as set forth in our Fee Schedule.

Please be aware that any ODP limit amount that has been granted to you is not included in your balance provided by a Teller, online banking, mobile banking, telephone banking, or our ATMs.

For eligible new account holders, the use of ODP may not be available to you until the first business day following the later of: the thirty (30) calendar day waiting period; or after the account has aggregate deposits totaling $800.00 or more. For this agreement, business days are Monday to Friday, excluding federal holidays.

How We Authorize and Pay Transactions

Your account may become overdrawn for various reasons including, but not limited to:

• the payment of checks, electronic funds transfers, or any other withdrawal or payment requests;
• items deposited to your account are returned to us unpaid;
• the assessment of applicable fees and service charges to your account; or
• the deposit of items to your account which according to our Funds Availability Policy are treated as not yet "available" or “finally paid.”

We authorize transactions throughout the day using the Available Balance in your account. Your Available Balance includes transactions that have posted and settled to your account less any deposit holds and ‘pending” transactions such as debit card transactions pre-authorized by a merchant or, teller withdrawals conducted after our prior business day cut-off time. These pending transactions and holds reduce your Available Balance. For example, you have $100.00 in your account and a pending transaction of $30.00. Your Available Balance is $70.00 because the pending $30.00 transaction reduces your available account balance. Keep in mind, your Available Balance does not include for example, outstanding checks you have written, and other debit transactions you have initiated that we have not received yet, or the full amount of debit card transactions where the final amount may differ from the amount that was originally authorized, such as when a tip is added to a restaurant charge. Also note, your Available Balance may not reflect your most recent deposits. Refer to our Funds Availability Policy Disclosure for more information.

We decide to pay items and assess Overdraft Fees, or return items and assess Returned Item Fees for non-sufficient funds, based on the Actual (Ledger) Balance in your account. Your Actual (Ledger) Balance is the balance of all posted and settled transactions at the conclusion of our nightly processing. This balance is only updated once every business day. The Actual (Ledger) Balance only includes transactions that have settled and does not reflect pending transactions or checks you have written that have not posted to your account. For example, you have $100.00 in your account and a pending transaction of $30.00. Your Actual (Ledger) Balance is $100.00 because the pending $30.00 transaction does not reduce your Actual (Ledger) account balance until it posts to your account.

Fees

Under our standard overdraft practices:

• We will charge you a fee of up to $30.00 each time we pay an overdraft.
• There is a limit of $150.00 on the total fees we can charge you for overdrawing your account per business day.
• A $30.00 fee will not be assessed for any item that creates an overdraft balance of $10.00 or less, or on items of $3.00 or less.

Please note:  If we return an item for non-sufficient funds, it may be presented for payment more than one time. We may charge you non-sufficient funds fees for each representment of an item, which means you may incur multiple non-sufficient funds fees if an item is returned more than one time. Other than specifically referenced above, there is no limit to the number of per item Overdraft/Returned Item Fees that can be charged on an individual item or to the frequency with which per item Overdraft/Returned Item Fees can be charged. 

We will notify you by mail (or electronically, if enrolled) if we pay or return any items on your account; however, we have no obligation to notify you before we pay or return any item.

Standard and Enhanced ODP

Standard ODP: Requires no action on your part. Standard ODP will be automatically applied to accounts meeting the eligibility requirements. With Standard ODP coverage we may authorize and pay overdrafts at our discretion, up to your available ODP limit, including fees, for checks, ACH payments, teller withdrawals and other payment transactions and transfers using your checking account number, automatic bill payments, and recurring debit card transactions*. Standard ODP does not include ATM and everyday debit card transactions. At any time, you may choose not to participate (“opt-out”) of ODP entirely. For details, see the ODP Opt-Out section below.

Enhanced ODP: This additional level of coverage requires you to opt-in. By opting-in you allow us, at our discretion, to approve your ATM and everyday debit card transactions up to your available ODP limit, including fees, when your Available Balance is insufficient. If you choose not to opt-in, the available balance used for authorizing ATM and everyday debit card transactions will NOT include the ODP limit and transactions will generally be declined. Additionally, not opting-in for Enhanced coverage does not affect your eligibility for Standard ODP. Giving us your consent to pay ATM and everyday debit card overdrafts may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your ODP limit, including fees, and may also help you avoid the embarrassment of having your ATM or debit card declined due to insufficient funds. 

*The Bank relies on information provided by the merchant to determine whether a transaction is one-time or recurring.

**We do not authorize and pay overdrafts for ATM withdrawals or everyday debit card transactions unless you ask us to do so. To opt-in for Enhanced ODP you must also have Standard ODP. 

Always a Discretionary Service

Any payment made by us under the Service will be made on a case-by-case basis, in our sole and absolute discretion. We are not obligated to pay any item presented for payment if your account does not contain sufficient funds even though your account is in good standing and even if we have done so in the past. If we do not pay an overdraft, your transaction will be returned or declined, and we may assess Returned Item Fees on your account in accordance with our Fee Schedule in effect at the time of the overdraft.

ODP is not a line of credit; it is a discretionary overdraft service that we can suspend, revoke, or discontinue at any time for any reason without prior notice to you. In no event shall any suspension, revocation, or discontinuation relieve you of your obligation to repay such sums already over-drafted, including all fees. 

 
Overdraft Repayment

You should make every attempt to cover your overdrafts as soon as possible. To avoid suspension or possible termination of your ODP limit, you are generally required to deposit enough money to bring your account to a positive end-of-day Actual (Ledger) Balance at least once every thirty-five (35) calendar days, including the payment of all fees and service charges. However, we do reserve the right to require you to pay your outstanding overdraft balance, including our fees and service charges, immediately or on demand. If there is an overdraft on an account with more than one owner, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts, including our fees.

Optional Overdraft Protection Plan

We offer an Overdraft Sweep Transfer Service which allows you to link your checking account to another checking, savings, or money market of yours with us. If you sign up for this optional plan, we will look first to your linked account before applying any ODP limit available to you when your account is overdrawn. Each transfer is subject to an Overdraft Sweep Transfer Fee set forth in our Fee Schedule. An Overdraft Sweep Transfer may save money on the total fees you pay for overdrafts. For more information, please call us or visit any banking center.

ODP Opt-Out

At any time, you may choose not to participate (“opt-out”) of ODP entirely. You understand however, that even though we will mark your account records to indicate you do not want us to authorize or pay transactions through ODP, we cannot guarantee that we will never exercise our discretion to authorize or pay a transaction you have initiated and for which you do not have sufficient funds. If we do this, with the exception of everyday debit card transactions and ATM withdrawals, you may still be charged our Overdraft Fee, in accordance with our Fee Schedule in effect at the time of the overdraft. Note: You may revoke your affirmative consent (opt-out of Enhanced ODP) without removing your Standard ODP coverage. Simply inform us of your preference. If you opt-out, you will still be responsible to repay such sums already over-drafted, including all fees. Additionally, without another form of overdraft protection your overdraft items will generally be returned or declined, and you may be assessed Returned Item Fees for non-sufficient funds in accordance with our Fee Schedule in effect at the time of the overdraft. We do not charge a fee for declining an ATM or debit card transaction at the point-of sale or ATM machine.

You may opt-out by calling us at (913) 281-3165, in-person at any of our banking center locations, by writing us at Security Bank of Kansas City Attn: Operations Support, PO Box 171297, Kansas City, KS 66117, or by sending a message via Secure Conversations within our Online Banking platform. We will process your opt-out election within a reasonable amount of time for us to act after receipt of your request.

If You Need Help

ODP is a benefit and should not be viewed as an encouragement to overdraw your account. You should not rely on overdrafts to pay ordinary or routine expenses. If at any time you feel you need help with your financial obligations, please contact us at (913) 281-3165 to discuss your options or visit with a Personal Banker at one of our banking centers.

Rev. 1/2024