New Overdraft Rules for Debit & ATM Cards

Debit and ATM card holders have additional overdraft options under the new Federal Reserve rules. In the next few months, financial institutions must offer you the ability to make decisions about overdraft services for transactions made with your debit or ATM cards.

Generally, there are 2 types of overdraft services:

1. Standard overdraft services
2. Overdraft protection plans

The new rules allow you these new options:

1. You choose to "opt in" which grants your financial institution permission to apply standard overdraft services to debit and ATM card transactions before you can be charged overdraft fees.
2. If you have an existing account and you don't "opt in", then beginning August 15th, any previous overdraft fees won't apply. Transactions will simply be declined instead of charging overdraft fees.
3. If you open a new account after July 1st, you will not be charged overdraft fees by your financial institution unless you "opt in".
4. The new overdraft rules give you more flexibility. You can add and remove overdraft services at any time.
5. The new rules do not cover checks or automatic bill payments. Your bank will automatically enroll you in their standard overdraft services for transactions like these.

Visit the Federal Reserve website to learn more details about the new overdraft rules.