Your Overdraft Options - The Choice is Yours

Wed, 09 Jan 2013

Did you know that you can ask us to either authorize or decline debit card transactions when you have insufficient funds in your checking account? Some people prefer to overdraw their account to let important payments post, and other people prefer to have their debit card declined. The choice is yours, and we want to help you understand the difference between the two options before you decide.


Debit Card Overdraft Services

Would you prefer us to authorize your every day debit card and ATM purchases when there are insufficient funds in your checking account? If so, you must opt-in to Debit Card Overdraft Services. This service allows Webster to authorize, at our discretion, purchases you want to make with your debit card when you have insufficient funds to cover those purchases. For this service, you will incur an overdraft fee. However, you should be aware that there is no guarantee that all of your over-balance debit card transactions will go through when you have insufficient funds.  


Three Ways to Opt-In

1. Online: Simply click here to opt-in online.

2. In Person: Ask a teller when you visit your nearest banking center.

3. Phone: Call us at (866) 273-0499, 24 hours a day, 7 days a week to review your options.


What if I Don’t Opt-In?

If you prefer us to decline your debit card purchases when you do not have enough money in your account to cover it, you don’t have to do anything. This is the default option. Your over-balance purchases will be declined at the point of sale and you will not be charged an overdraft fee.  


Other Overdraft Protection Services

Do you want us to authorize transactions when you don’t have enough money in your account and avoid paying the overdraft fee? One of these two options might be right for you:  

1. Savings Overdraft Protection

With this service, your Webster savings and checking accounts are linked, and funds are automatically transferred to cover any shortfalls. There is a transfer fee for this service, depending on the type of checking account you have. For Premier Checking: no transfer fee. Webster One Relationship Checking customers: $6.00, All other checking accounts: $10.00. Please note that Federal regulations limit the number of certain types of pre-authorized transfers from your savings account, including transfers to cover overdrafts.  Please see our Deposit Account Disclosures for further details, or read our blog post that explains.


2.  Overdraft Line of Credit

The second option is to apply for an overdraft line of credit. Upon approval, your over-balance checking transactions will be covered up to your credit limit. Interest charges and an annual fee apply. To learn about how these services work in more detail, please read: A Guide to Managing your Checking Account. You can always give us a call, visit us at a branch, or chat with us online to talk about adding these options.


Free Services to Help you Avoid Overdrawing your Account

Staying on top of your account balances is one of the best ways to protect yourself from unwanted overdraft fees. We have a variety of options to help including:  

  • Webster Online

WebsterOnline is a valuable tool that helps you stay up-to-date on your account activity and balance, and guard against overdrafts. Plus, you can easily move money between your accounts with immediate transfers between Webster accounts, a one-time transfer or recurring future transfers.  

  • Mobile Banking

Mobile banking is another great option to check balances on the road or to make transfers or pay bills. Click here to read about what you can do via your Smartphone and download our new app!  

  • Telephone Banking

Call 1-800-325-2424 to access your account information by phone, or for more information on our other services.  


The option is yours. To add to add any of these services to your account, give us a call at 1-800-325-2424, or visit us online or in a branch. We’re always happy to help you figure what works best for you and your unique situation. Thanks for being a loyal customer, and please let us know any questions in the comments below.