Frequently Asked Questions: Debit Card Overdraft Protection

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Q: What is changing to my overdraft service?
A: The service itself is not changing. However, Heritage Bank customers must actively choose whether to continue receiving Debit Card Overdraft Protection for ATM and one-time debit card transactions before August 5, 2010 to avoid an interruption in service.

Q: What is a one-time debit card transaction?
A: A one-time debit card transaction is a non-recurring PIN or signature-based debit card transaction that is typically conducted at a point-of-sale. For instance, a purchase at the grocery store or made online using your debit card are examples of one-time debit card transactions. By contrast, automatic monthly payments such as a gym membership or utility bill that have been set up using your debit card are examples of recurring debit card transactions.

Q: What happens when my account is overdrawn?
A: Currently, if you have an overdraft, Heritage Bank may cover the transaction at our discretion but charge you a fee for this service. Starting August 5, 2010, we will need your permission to continue offering this service for your ATM and one-time debit card transactions.

Q: If I have insufficient funds in my account, will my card be declined?
A: If you do not actively opt-in to continue receiving Debit Card Overdraft Protection, starting August 5, 2010, your ATM and one-time debit card transactions will be declined when they exceed your available balance. There will be no fee for an overdraft if you have not agreed to continue receiving Debit Card Overdraft Protection.

Q: If I do nothing or if I do not opt-in, what will happen if my account is overdrawn?
A: If you do not actively opt-in to continue receiving Debit Card Overdraft Protection and you make an ATM or one-time debit card transaction that overdraws your account, or one that is applied to an already overdrawn account, your transaction will be declined and you will not be charged a fee.

Q: Don't I already have overdraft service?
A: Checks, recurring debit card transactions, ACH and automatic electronic payments may be paid without sufficient funds available in your account at our discretion. However, customers must sign up before August 5, 2010 to continue receiving Debit Card Overdraft Protection for ATM and one-time debit card transactions without interruption.

Q: I never overdraw my account, so why would I want Debit Card Overdraft Protection?
A: Even if you never overdraw, some people like Debit Card Overdraft Protection for those "just in case" moments. If you never overdraw, you will never be charged a fee.

Q: If I choose to continue Debit Card Overdraft Protection now, can I change my mind later?
A: Yes, customers can make their choice any time using our online form, by visiting a branch, or calling us at 1-800-455-6126.

Q: Does this change affect overdrafts caused by checks, automatic recurring debit card transactions or electronic payments?
A: No, it does not apply to these transactions. Heritage Bank will continue to provide overdraft protection for checks, recurring debit card transactions and electronic payments at its discretion and charge the standard fees that apply to them.

Q: I have a Classic Reserve Line account for overdraft protection. How is that affected by the change?
A: Your checks, ATM transactions, and everyday debit card purchases will continue to be covered as they are today, up to your available Credit Limit even if you do not opt-in for Debit Card Overdraft Protection.

Q: I already have Savings Overdraft Protection for my checking account; do I need Debit Card Overdraft Protection?
A: Your checks, ATM transactions, and everyday debit card purchases will continue to be covered as they are today, up to your available balance in your savings account even if you do not opt-in for Debit Card Overdraft protection.

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

• Checks
• Automatic bill payments (online bill pay)
• Recurring debit card transactions (For example: utilities or club memberships)
• ACH transactions

After August 5th, we will not authorize and pay overdrafts for the following types of transactions unless you opt-in for the coverage:

• ATM transactions
• One-time debit card transactions

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

• We will charge you a fee of up to $29 each time we pay an overdraft, maximum of 6 per day.
• Also, if your account is overdrawn for 4 or more consecutive business days, we will charge an additional $5 per day, maximum of 15 days.

Q: Where can I learn more about Heritage Bank’s Debit Card Overdraft Protection?
A: To learn more, stop by a branch, or call us at 1-800-455-6126.