Overdraft Protection Services

Frequently Asked Questions

Available Balance Calculation and Overdraft Protection Services

What is an overdraft?
An overdraft occurs when you write a check, make an ATM transaction, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for an amount greater than the balance in your checking account.

What are AmBank’s standard overdraft services?
We do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

With the new rules effective August 15, 2010, we will not authorize and pay overdrafts for the following types of transactions unless you ask us to authorize (see New Rules Regarding Overdraft Protection):

ATM Transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

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

We will charge you a fee of up to $25 each time we pay an overdraft.
Also, we charge an additional $10 for every five (5) or more consecutive business days your account is overdrawn.
There is no limit on the total fees we can charge you for overdrawing your account.

Does AmBank offer Overdraft Protection?
Yes.

What Overdraft Protection Options do I have?

Account Transfer
Open a savings account and ask us to tie it to your checking account and we will set up an automatic transfer for any checks you write without available funds. The transfer automatically debits your savings account up to the available balance, with no charge.
Line of Credit
A personal line of credit covers any checks you write, regardless of checking account balance, right up to your credit limit. Credit qualifications apply.

Are there any restrictions to obtaining Overdraft Protection Services?
Yes, each of the above services has specific qualifications and restrictions. Refer to the Overdraft Protection Insert for details regarding these requirements.

How do I get Overdraft Protection Services?
Contact a Customer Service Representative at your local banking center for assistance.

What if I don’t want Overdraft Protection?
You may choose at any time not to participate in our Overdraft Privilege Service by notifying one of our Customer Service Representatives.

What accounts are eligible for Overdraft Protection?

Basic Checking
Direct Checking
Regular Checking
NOW Checking

New Rules Regarding Overdraft Protection

Changes
In the past, AmBank would implement our standard overdraft practices by decisioning (either pay or return) all overdraft items and charge our Overdraft/NSF item fee. Under the new rules, we must first get your permission to apply these services to your everyday debit card and ATM transactions before you can be charged overdraft fees. To grant permission, you will need to OPT-IN to authorize these transactions.
Existing Accounts
If you do not OPT IN, beginning August 15, 2010, AmBank’s standard overdraft practices won’t apply to your everyday debit card and ATM transactions. These transactions typically will be declined when you don’t have enough money in your account, but you will not be charged overdraft fees.
New Accounts
Customer OPT IN authorization is required on all new accounts opened on or after July 1, 2010, to provide Overdraft Protection on every day debit card and ATM transactions. In an effort to expedite this process and for our new account holders’ convenience, AmBank, effective immediately, will have OPT IN forms completed by the customer when the account is opened.
Flexibility
Whatever your decision, the new overdraft rules give you flexibility. If you OPT IN, you can cancel
at any time. If you do not OPT IN, you can do so later.

Checks and Automatic Bill Payment
The new rules do not cover checks or automatic bill payments that you may have set up for paying bills such as your mortgage, rent, or utilities. We may still apply our standard overdraft practices for these types of transactions.

How do I OPT IN?
If you want AmBank to authorize and pay overdrafts on ATM and everyday debit card transactions,

YOU MUST OPT IN BY:

Calling customer service at 575-534-0550 or 800-440-8751 OR
Visiting www.ambanksc.com with a response code you would have received in the mail OR
Completing the OPT-IN form and presenting it to your local banking center OR
Completing the OPT-IN form and mailing to:
         AmBank
         Attn: OPT IN
         PO Box 2677
         Silver City, NM 88061-2677

Besides this FAQ information, how can I get help with my account?
You can contact your local banking center in person or call 575-534-0550 or 800-440-8751.

Useful Terms

Everyday Debit Card Transactions – Purchases made with your debit card on a day-to-day basis (excludes all checks and automatic bill payments).
Overdraft – An overdraft occurs when you write a check, make an ATM transaction, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for an amount greater than the balance in your checking account.
OPT IN – Giving AmBank permission to include you in a particular service.
OPT OUT – declining a particular service offered by AmBank