Options for Overdraft Coverage
Whether a sudden business expense arises or funds didn’t clear on time, your business may have an overdrawn checking account on occasion. To help you manage your business accounts when the unexpected occurs, we offer two kinds of overdraft coverage.
Overdraft Protection links your checking account to another Synovus account or line of credit. This service applies to all checking account transactions and may help prevent overdrafts by automatically transferring funds to your checking account from one of these sources:
- Another Synovus deposit account ($10 fee per transfer)
- Synovus credit card cash advance (subject to credit approval; card fees and interest apply)
- Synovus line of credit (subject to credit approval; line of credit fees and interest apply)
If your account qualifies, your checking account will automatically be covered by Overdraft Privilege for checks, ACH and certain other transactions. If a transaction causes your checking account to be overdrawn, this service can pay the transaction for a fee of $36 up to the $1,000 overdraft limit.1,2
Overdraft Privilege applies to the following transactions:
- ACH—auto debits (e.g., your monthly bills)
- Recurring debit card payments
- Teller window transactions
- ATM withdrawals2
- Everyday Debit Card purchases2
Of course, you can always discontinue Overdraft Privilege, but if you do, overdraft transactions will not be paid, and your account will still be charged a $36 non-sufficient funds fee for each overdraft transaction. To discontinue, call us at 800- SYNOVUS (796-6887).
Frequently Asked Questions
How much does Overdraft Privilege cost?
There is no cost for Overdraft Privilege unless you use it. If you have an overdraft, there is a $36 overdraft fee per transaction that causes your account to be overdrawn.
How do I get Overdraft Privilege?
Every eligible business checking account automatically has Overdraft Privilege after the account has been open for 61 days and is in good standing.
What if I don’t want Overdraft Privilege?
You can discontinue Overdraft Privilege in its entirety by contacting us at 800-SYNOVUS (796-6887). Without Overdraft Privilege, any overdrafts will be declined at the point of purchase or returned unpaid to the payee (unless you have Overdraft Protection available to cover the transactions). Also, you will be charged a $36 non-sufficient funds fee for each transaction that is returned unpaid.
What else do I need to know about Overdraft Coverage?
- A link to another account or a line of credit could be a less expensive option than an overdraft. A single larger overdraft transaction will result in just one fee, as opposed to multiple smaller overdraft transactions.
- Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.
- Good account management is the best way to avoid overdrafts. Use our online banking and telephone banking services to keep track of your balance.
Additional Information on Fees and Charges
- The $36 overdraft fee is the same fee amount that is charged if a check is returned as unpaid. If multiple transactions overdraw your account on the same day, each transaction will be assessed an overdraft fee or a non-sufficient funds fee of $36. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.
- Your account may be charged a negative collected balance fee of Prime +3% depending on your account type.
- This section describes our general practice for paying transactions from your account. We may vary the order of payment if items are presented that cannot be returned unpaid. We reserve the right to change how we pay transactions from your account and will provide you notice of these changes. After the close of the business day, we add your deposits and other credits to your account. We then deduct any fees and charges owed to us. Finally, we deduct all items presented for payment. The order these items are deducted from your account balance is based upon the type of transaction and, for electronic transactions, when the transaction was performed by you or was received by us. First, we pay outgoing wire transactions in the order they were made. Then, we pay electronic transactions (First, we pay preauthorized ACH debits, then ATM transactions, then debit card transactions.) in the order they were performed by you or were received by us. Finally, we pay checks and other items drawn on your account by dollar amount in descending order. However, exceptions will occur. Holds on funds (described below) and the order in which transactions are paid may impact the total amount of overdraft fees assessed.
Restrictions and Holds
- Although under transaction processing requirements we may be obligated to pay some unauthorized debit card transactions, we will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage options, if applicable) to cover the transactions and any fee(s).
- An overdraft can occur when one or more debit items (for example: check, ATM, debit card, etc.) attempts to clear your account in an amount that exceeds the Available Balance of your deposit account. “Available Balance” is calculated by taking the prior business day’s ending Ledger Balance and subtracting funds being held to cover pending transactions. A pending transaction is a transaction the bank is aware of but has not yet cleared your account and might include must-pay debit card transactions or deposits made to your account for which funds have not yet been collected. “Ledger Balance” is typically the balance from the close of the previous business day. Neither Ledger Balance nor Available Balance reflects any transactions the bank does not know about such as checks written but not yet received by the bank.
- Except as described in this document, we will not pay transactions if your account does not contain available funds (including the Overdraft Privilege limit) to cover the transaction(s) and the amount of any fee(s).
- We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege limit.
- We will place a hold on your account (for up to three business days) for any authorized signature-based debit card transaction until the transaction settles or as permitted by transaction processing requirements.
- Overdraft Privilege is not a loan or a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, if your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day.
- All account owners will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Terms and Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.