What options does MAX offer for Overdraft Protection?
MAX offers overdraft protection plans using a Line of Credit, Share (savings) account, and Courtesy Pay also known as MAX Return Check Solution for qualifying members.
What is a Line of Credit?
A Line of Credit is a loan that is available to you when need to cover an insufficient checking account transaction. This loan can cover insufficient checking transactions (checks, ACH, Point of Sale, or Bill Payment) up to your available credit limit.
How does a Line of Credit work?
If you have a Line of Credit, instead of overdrawing your checking account or sending items back unpaid, MAX will advance the amount needed from your Line of Credit to pay those transactions up to your available limit.
What is the cost associated with a Line of Credit?
The Line of Credit is a loan and any amounts advanced on the Line of Credit are subject to a finance charge.
When do I pay the charges on my Line of Credit?
Payments are due monthly when there is an outstanding balance.
How do I sign up for a Line of Credit?
In order to open a Line of Credit, you do have to apply and qualify. Because it is a loan, you must meet certain requirements. You can apply at any of our branches, online, or by contacting the myMAX Service Center at 334-260-2600 or 1-800-776-6776.
What if I don't have a Line of Credit?
If you do not have a Line of Credit, or if you have reached your limit on this Line of Credit, we will then look to your MAX Share (savings) to cover insufficient items.
How is my Share (savings) account used as Overdraft Protection?
If there are available funds in your savings account, we will automatically transfer the funds electronically from your savings account.
Is there a cost to transfer the funds from my savings account?
There is a $1.00 transfer fee each time a transfer is made.
Are there any restrictions to how many transfers can be made from my savings account?
Under current federal regulations, you may have no more than six (6) electronic transfers from your savings account per calendar month (transfers via myMAX Online Branch and JennyMAX count towards this total).
What if there are no available funds in my savings account, or I have reached my maximum number of transfers?
If there are no available funds in your savings account, or you have reached the limit of six (6) transfers in one month, we may, at our discretion, pay the overdraft through our Courtesy Pay program known as MAX Return Check Solution.
What is Courtesy Pay?
Courtesy Pay is a service for qualifying members that allows us to pay certain checking account transactions when there are insufficient funds in your account. Checking transactions that qualify for Courtesy Pay protection are checks, ACH debits, and point of sale (MAX Check Card or ATM Card). Courtesy Pay provides an added layer of protection on eligible checking accounts to help members avoid the embarrassment of "bounced" checks and declined point of sale transactions.
How does Courtesy Pay work?
If your account is in good standing, and your other overdraft sources are not available, we will pay insufficient items up to the qualified limit. Your checking account will be overdrawn by the amount that exceeded your balance plus the amount of the MAX Return Check Solution fee.
What is the cost for Courtesy Pay?
There is a $30.00 fee assessed for each transaction that is paid via MAX Return Check Solution. However, eligible accounts can overdraw up to $10 with no assessed fee.
How long do I have to repay any Overdrawn Balance?
You must make a deposit to repay the overdrawn balance within 10 business days.
What else should I know about Courtesy Pay?
MAX will not overdraw an account more than the Return Check Solution limit. The payment of a check, point of sale or ACH transaction that results in an overdrawn balance is at the sole discretion of MAX.
Do I have to sign up for Courtesy Pay?
Under new federal regulations, beginning July 1, 2010, new members are not eligible for Courtesy Pay on debit transactions unless they "opt-in" to the program, and existing members as of August 15, 2010, who are currently using the program must "opt-in" to extend this service to debit transactions.
New members that "opt-in" for Extended Overdraft Protection are automatically enrolled for MAX Return Check Solution after they meet certain eligibility qualifications. These include but are not limited to:
- You must be at least 19 years of age; and
- Your membership must be in good standing
What happens if I don't opt-in?
If you are making a purchase with your MAX Check Card or ATM Card and there are no available funds in your checking account, the transaction may be denied.
Why should I opt-in?
MAX Return Check Solution is designed to be a helpful service to help you avoid costly mistakes in your checking account. Think of the following scenarios:
- You are at the checkout counter of the grocery store and your total comes to $200. Your account has a balance of $185. If you opt-in to MAX Return Check Solution, this transaction could be approved.
- You and the family are at a restaurant having dinner. The total bill comes to over $100. You only have $85 in your checking account. If you haven't opted in to MAX Return Check Solution, you'll have to find another way to pay for your meal.
If you opt-in, MAX Return Check Solution can help you avoid an embarrassing situation when your account balance is less than you anticipated.
How do I opt-in?
All we need is your confirmation. There are a number of ways for you to opt-in.
- Complete the Extended Overdraft Protection Form online at myMAX.com/opt-in.
- Call the myMAX Service Center at 334-260-2600 or 1-800-776-6776, Monday - Thursday, 8:30 a.m. - 5:00 p.m. Central Time; Friday, 8:30 a.m. - 6:00 p.m. Central Time.
Regardless of how you choose to opt-in, it will only take a few minutes.