Important information for account holders about overdrafts

An overdraft happens when you spend more money than you have in your account. Instead of denying a transaction or returning it for insufficient funds, the bank may agree to pay it, typically assessing a fee.

Overdraft Privilege

For those times when you exceed your balance, overdrafts are paid through the Beneficial Overdraft Privilege Program, which is offered to all customers who are eligible. Overdraft eligibility is based on factors such as the age of the account, deposit activity, overdraft history, and average account balance; the criteria are the same for all accounts and all customers. The service covers debit card purchases, ATM transactions, checks and electronic transfers (ACH). Each qualified account is assigned a maximum overdraft amount, and accounts are evaluated on a regular basis.

You only pay for this program when you use it. A $35 fee Overdraft Fee is charged for every transaction involved in the overdraft (a "paid overdraft"). We will waive any overdraft fees for ATM and one-time debit card purchases on accounts overdrawn for a total of $5 or less at the end of the day. Unlike many banks, we do not charge another fee if the overdraft remains unpaid after several days. However, accounts maintaining a negative balance for more than 5 days may lose Overdraft Privilege. Accounts overdrawn for an extended period of time may be closed.

Payment Processing Order

Beneficial Bank processes payments in the following order: All items are paid by ascending transaction code, then low dollar amount to high, and then by ascending serial number for checks. Payment processing order sequence does not look to maximize customer overdrafts and related fees through the clearing order.

Note: You will be charged no more than $210, the equivalent of 6 Overdraft Fee, per day. Your Overdraft Privilege (including electronic transfers [ACH], checks, ATM transactions and one-time debit card purchases) will be removed if you perform more than 25 overdrafts in a rolling twelve-month period.

According to the law, consumers will need to agree to participate in (or "opt in" to) the Overdraft Privilege program for ATM transactions and one-time debit card purchases.

All eligible customers are given Overdraft Privilege for checks and electronic transfers or recurring debit card transactions unless a specific opt-out request is made. You may also choose to opt out of the Overdraft Privilege program for checks and electronic transfers.

You have options regarding ATM card or debit card transactions.

We need to know how you want your ATM transactions and one-time debit card purchases handled, in the event that you do not have enough money in your account to cover the amount. You have two options:

  • Opt In (action required)
    By opting in, you are asking Beneficial to pay your ATM transactions and one-time debit card purchases when you have insufficient funds, assuming you qualify for Overdraft Privilege.
  • Each paid overdraft will result in a $35 fee unless the total amount overdrawn for the day is $5 or less. We will waive the overdraft fees for ATM and one-time debit card purchases on accounts overdrawn by a daily total of $5 or less (see “How does the $5 cushion work?”).
  • Opt Out (No action required)
    If you decide you do not want Overdraft Privilege, you do not need to notify Beneficial. If the bank does not receive a response from you, Beneficial will deny your ATM transactions and one-time debit card purchases when you have insufficient funds. However, if you make a selection it will take effect by the end of the next business day. There is no fee associated with this choice to opt out.
  • Please note: If you would like to opt out of Overdraft Privilege for electronic transfers (ACH) and checks, please call our Customer Contact Center at 888.742.5272 or stop into a branch. Opting out of Overdraft Privilege for electronic transfers and checks means those transactions will not be paid if there are not enough funds in your account. However, you will still be subject to a Returned Item Fee of $35 per item.

How to opt in

You have three convenient ways to opt in:

  • Call us. Dial 888.742.5272 to reach a Customer Contact Center representative, and tell them your overdraft preference.
  • Stop into a branch. Any of our helpful offices can assist you.
  • Log into Online Banking, point to 'Locate Secure Forms' and click on ATM and Debit Card Overdraft Preferences'.



Read on for helpful information about your overdraft options, tips on avoiding overdrafts, and answers to FAQs.

How does Overdraft Privilege work?
Do customers have a choice when it comes to Overdraft Privilege?
What types of transactions are impacted by the regulatory changes?
What types of transactions are not impacted by the regulatory changes?
Can I opt in just for certain purchases or stores with my ATM card or debit card?
Can I change my mind?
How will I know that you received my selection?
What if I have multiple checking accounts?
If I opt in to Overdraft Privilege, is Beneficial required to pay my overdraft?
How does the $5 cushion work?
Are there any alternatives to Overdraft Privilege?
Is it possible to have both Overdraft Privilege and Overdraft Protection?
What if I have Overdraft Protection and I do not opt in?
How do I decide the best option for me?
How can I avoid an overdraft in the first place?

anchorHow does Overdraft Privilege work?

Here is an example:

Date Deposits (+) Withdrawals (-) Balance Description
$221.56 Starting balance.
05/29/13 $60 -$60.00 $60 withdrawal from the ATM.
$161.56 Account has a balance of $161.56
06/29/13 $122.35 -$122.35 Utility bill paid by check.
$39.21 Account has balance of $39.21.
06/01/13 $221.57 -$221.57 A debit card purchase at the grocery store exceeds what is in the customer's account.
-$182.36 Overdraft Privilege will be used to cover $182.36 of the debit card purchase.
06/02/13 $35.00 -$35.00 There is a $35 Overdraft Fee per item for using Overdraft Privilege.
-$217.36 Account has a negative balance of -$217.36.
06/02/13 $1,786.98 +$1,786.98 Payroll deposit.
$1,572.62 The deposit is reduced by $217.36, which is the overdraft amount of $182.36 plus the $35 fee.

anchorDo customers have a choice when it comes to Overdraft Privilege?

All owners of personal checking accounts with an ATM card or debit card attached must decide if they want Overdraft Privilege for ATM transactions and one-time debit card purchases. This is a standard opt-in or opt-out.

It’s important to know that opting in does not guarantee that every overdraft will be paid. Please note that business checking accounts are not impacted.

Customers also have the option of opting out ofalloverdrafts (debit card transactions, ATM transactions, checks and electronic transfers). This is a full overdraft opt-out.

anchorWhat types of transactions are covered by the standard Overdraft Privilege opt-out selection?

Your standard overdraft selection will impact these types of transactions:

  • ATM withdrawals
  • ATM transfers
  • One-time debit card purchases, including both PIN and signature-based transactions made at a store, online or by telephone

anchorWhat types of transactions are not impacted by the standard Overdraft Privilege opt-out selection?

Your overdraft selection will not impact these types of transactions:

  • Checks
  • Electronic transfers (ACH)
  • Recurring debit card transactions, such as subscriptions or memberships

To opt out of Overdraft Privilege for these transactions you need to request a full Overdraft Privilege opt-out.

anchorCan I opt in just for certain purchases or stores with my ATM card or debit card?

No. Your opt-in decision applies to all ATM withdrawals and transfers, as well as one-time debit card purchases.

anchorCan I change my mind?

Yes, you may switch your Overdraft Privilege option at any time. However, please be aware that the change is not immediate. Your selection will not be implemented in our system until the next business day.

anchorHow will I know that you received my selection?

If you opt in to the Overdraft Privilege program for ATM and debit card transactions, you will receive written confirmation in the mail or by email. There is no confirmation for opt-out requests for checks and electronic transfers.

anchorWhat if I have multiple checking accounts?

You will need to make an overdraft selection for each checking account you have with Beneficial. Your selection does not need to be the same for all accounts.

anchorIf I opt in to Overdraft Privilege, is Beneficial required to pay my overdraft?

No. Beneficial does not guarantee overdraft payment for customers who have opted in to the Overdraft Privilege Program. As mentioned earlier in the “What is Overdraft Privilege?” section, your account must meet certain criteria in order to be granted Overdraft Privilege.

anchorHow does the $5 cushion work?

We want to keep a small overdraft from leading to a big charge. So, we are giving our customers, who opt-in to and qualify for Overdraft Privilege, a $5 cushion. You will not be charged for ATM and one-time debit card overdrafts if your account is overdrawn by $5 or less at the end of the day. For example, if you make a debit card purchase resulting in your account being overdrawn by $3, the $35 Overdraft Fee will be reversed. However, if you make another purchase on that same day resulting in your account being overdrawn by a total of $6, you will be charged $35 for the first overdraft and another $35 for the second overdraft (a total of $70). The key to avoiding overdraft fees is to not exceed your balance by more than $5 on any given day.

anchorAre there any alternatives to Overdraft Privilege?

Yes, Beneficial offers another service to cover your overdrafts. Overdraft Protection is a service that draws from another deposit account or line of credit to provide an overdraft “safety net.” For example, if your checking account has insufficient funds to cover a purchase, money can be automatically transferred from your savings account to your checking account to cover the purchase.

Overdraft Protection from a linked deposit account

Overdraft Protection from linked deposit account can link a statement savings, money market, or another checking account to your checking account. When a statement savings, money market, or checking account is linked:

  • Overdraft coverage is provided up to the amount of available funds in your linked account
  • Only one transfer is made each day
  • A $10 Overdraft Protection Fee is charged each day an overdraft occurs

Example: How Overdraft Protection Works

Date Deposits (+) Withdrawals (-) Balance Description
$221.56 Starting balance.
05/29/13 $60.00 -$60.00 $60 withdrawal from the ATM.
$161.56 Account has a balance of $161.56
05/29/13 $122.35 -$122.35 Utility bill paid by check.
$39.21 Account has balance of $39.21.
06/01/13 $57.63 -$57.63 A debit card purchase at the pharmacy exceeds what is in the customer's account.
-$18.42 Account has a negative balance of -$18.42
06/01/13 $221.57 -$221.57 Customer makes another debit card purchase at the grocery store, overdrawing the account further.
-$239.99 The account is now overdrawn by $239.99.
06/01/13 $239.99 +$239.99 Overdraft Protection is activated, and $239.99 is automatically moved from the linked savings deposit account.
$0.00 The balance will be zero until a deposit is made.
06/02/13 $1,786.98 +$1,786.98 Payroll deposit.
$1,786.98 Account has a balance of $1,786.98.
06/05/13 $10.00 -$10.00 The $10 Overdraft Protection Fee for the 06/01/13 transfer is charged on the last day of the statement cycle.
$1,776.98 Account has a balance of $1,776.98.

Overdraft Protection from Line of Credit

Another option is to link a line of credit to your checking account. You can draw up to the total approved line to provide money when there are insufficient funds in your checking account. When a line of credit is linked:

  • Funds are drawn in increments of $50
  • Interest is charged on the amount drawn
  • There is an annual fee of $15 for the line of credit
  • There is no per occurrence fee
  • Each month 2% of the outstanding balance plus interest is deducted automatically from your checking account to repay the loan
  • The monthly payment is at least $20, however, you can pay off the balance at any time without penalty

Opt in (action required) for ATM and debit card transactions. By opting in, you are asking Beneficial to pay your ATM transactions and one-time debit card purchases when you have insufficient funds, assuming you qualify for Overdraft Privilege. Each paid overdraft will result in a $35 fee unless the total amount overdrawn for the day is $5 or less. Accounts overdrawn by $5 or less per day will have the overdraft fees waived for ATM and debit card transactions (see “How does the $5 cushion work?”).

anchorIs it possible to have both Overdraft Privilege and Overdraft Protection?

Yes. Customers with Overdraft Protection who opt in to Overdraft Privilege receive additional overdraft coverage. Here’s how it works: In the event of an overdraft, Overdraft Protection funds are always used first. If the funds in the linked account are exhausted, the customer’s Overdraft Privilege coverage kicks in. Each transfer from the linked account to cover overdrafts results in a $10 fee. Each overdraft from Overdraft Privilege results in a $35 fee.

Opt in (action required) for ATM and debit card transactions. By opting in, you are asking Beneficial to pay your ATM transactions and one-time debit card purchases when you have insufficient funds, assuming you qualify for Overdraft Privilege. Each paid overdraft will result in a $35 fee unless the total amount overdrawn for the day is $5 or less. Accounts overdrawn by $5 or less per day will have the overdraft fees waived for ATM and debit card transactions (see “How does the $5 cushion work?”).

Example: How Overdraft Protection And Overdraft Privilege Work Together

Date Deposits (+) Withdrawals (-) Balance Description
$221.56 Starting balance.
05/29/13 $60.00 -$60.00 $60 withdrawal from the ATM.
$161.56 Account has a balance of $161.56
05/29/13 $122.35 -$122.35 Utility bill paid by check.
$39.21 Account has balance of $39.21.
06/01/13 $57.63 -$57.63 A debit card purchase at the pharmacy exceeds what is in the customer's account.
-$18.42 Account has a negative balance of -$18.42
06/01/13 $221.57 -$221.57 Customer makes another debit card purchase at the grocery store, overdrawing the account further.
-$239.99 The account is now overdrawn by $239.99.
06/01/13 $215.65 +$215.65 Overdraft Protection is activatedfirst. The funds available in the linked savings account are transferred. The savings has a balance of $215.65.
-$24.34 The account is now only overdrawn $24.34. Overdraft Privilege covers the additional overdraft amount.
06/02/13 $35.00 -$35.00 There is a $35 Overdraft Fee per item for using Overdraft Privilege.
-$59.34 Account has a negative balance of -$59.34.
06/03/13 $1,786.98 +$1,786.98 Payroll deposit.
$1,727.64 The deposit is reduced by $59.34, which is the overdraft amount of $24.34 plus the $35 fee. This leaves a balance of $1,727.64.
06/05/13 $10.00 -$10.00 The $10 Overdraft Protection Fee for the 06/01/13 transfer is charged on the last day of the statement cycle.
$1,717.64 Account has a balance of $1,717.64.

anchorWhat if I have Overdraft Protection and I do not opt in?

Customers with Overdraft Protection who have not opted in to Overdraft Privilege will be unable to spend more than is in their linked account. All ATM or one-time debit card transactions exceeding their checking and linked account balances will be denied.

You do not need to opt in for Overdraft Privilege for checks and electronic transfers. Eligible customers are automatically given Overdraft Privilege for those transactions, unless an opt-out request is made.

anchorHow do I decide the best option for me?

At Beneficial, it is our mission to provide the information you need to do the right thing financially. We know it is important for you to consider your financial situation and lifestyle when deciding whether to opt in to Overdraft Privilege. Here are several questions that may help you decide what is best for you:

  • Do you record your checks, purchases and other payments in your checkbook register?
  • How frequently do you monitor your account activity and balance?
  • How often do you use your debit card for purchases or make ATM withdrawals?
  • Does more than one person make debit card purchases or make ATM withdrawals on your account?
  • Do you have bills being deducted from your account automatically?
  • How would you feel if you have a purchase or withdrawal declined?
  • Do you have a plan for how to handle unexpected purchases when your checking account balance is low? A Beneficial representative will be happy to provide any additional information you need to make your decision.

anchorHow can I avoid an overdraft in the first place?

The majority of overdrafts are inadvertent. You may forget to record a check or a purchase. You may spend funds before they are available. There are many reasons it can happen…here are some tips to make overdraft less likely:

  • Balance your checkbook. Having a record of every purchase, check and deposit will make you aware of how much money you have available to spend.
  • Monitor your account online. Beneficial Online Banking is free and easy to use. View all of your transactions and deposits and see your available balance. Sign up for Online Banking now, or visit one of our branches.
  • Monitor your account on your mobile phone. Beneficial offers
    BeneficialMobile for free. (Mobile carriers may charge for text messaging and data transfer.) Check your balance and view transactions via text messaging, mobile web or phone app. Register for BenMobile now, or visit one of our branches.
  • Set up balance alerts in Online Banking. Receive an email each time your balance falls below an amount you specify, or receive a weekly email with your balance information. Balance alerts and Beneficial Online Banking are both free. Just go to the “Account Access” screen and click “Notifications” to create your alert. It takes less than a minute to set up!
  • Create a budget with FinanceWorks™ Avoiding overdrafts is easier when you know exactly how much you can spend. Within Online Banking, we offer a free finance managing tool: FinanceWorks™, powered by Quicken®. It allows you to see every dollar you earn, save and spend by showing you all of your accounts, whether they are Beneficial accounts or not. Log in to Online Banking and click “FinanceWorks™.”
  • Get direct deposit. Ask your employer to automatically deposit your paycheck into your account. Your funds are deposited without a trip to the bank and are available the same day.

If you have any questions that weren’t answered here, please do not hesitate to stop in one of our offices or give us a call at 888.742.5272.




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1818 Beneficial Bank Place
1818 Market Street
Philadelphia, PA 19103

888.742.5272
info@thebeneficial.com
The use of non-secure email is intended for general questions, inquiries and comments only. Confidential Customer information cannot be accepted electronically.


Routing No: 236075689
SWIFT Code: BENFUS33

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