Overdrafts
Frequently Asked Questions


What is an overdraft?
An overdraft occurs when you do not have enough money in your account to cover a payment you have authorized, but the bank pays it anyway.

What types of transactions are impacted by the new overdraft rules?
The new overdraft rules affect ATM and everyday debit card transactions only. Checks, ACH and recurring debit card transactions are not impacted.

What is the difference between an everyday debit card transaction and a recurring debit card transaction?
Everyday debit card transactions include one-time purchases or payments at grocery stores, gas stations or other merchants. Recurring debit card transactions are set up to pay automatically and include recurring insurance premiums and gym membership dues.

Why would I authorize Broadway Bank to pay overdrafts on my ATM and everyday debit card transactions?
We understand that you may occasionally need to make a transaction that exceeds the balance in your account. Your authorization allows Broadway Bank to consider paying the overdraft.

If I authorize Broadway Bank to pay overdrafts on my ATM and everyday debit card transactions, will my items always be paid?
Overdrafts are paid at the bank’s discretion. We do not guarantee that we will always authorize and pay any type of transaction when there is not enough money available in your account to cover the item.

If I do not authorize Broadway Bank to pay overdrafts on my ATM and everyday debit card transactions, will my transactions be declined?
Yes, your ATM and everyday debit card transactions will be declined if there are insufficient funds available in your account to cover a purchase.

Is there a fee for ATM and everyday debit card overdraft coverage?
There is no fee for this coverage if you never use it. If the bank authorizes an item that overdraws your account, a fee of $30 will be charged (as set forth in our fee schedule).

If I have Overdraft Protection linked to a savings account or an overdraft line of credit, do I still need to consider Opting In?
Yes.  Broadway’s Overdraft Protection (linked accounts) allows us to automatically transfer from your Broadway savings account or an overdraft line of credit if the balance in your checking account isn’t sufficient to pay an item.  However, because the Overdraft Protection program is part of our Overdraft Services system, if you don’t have enough money in your checking account, your everyday debit card purchases and ATM withdrawals will be declined, regardless of the balance in your linked accounts, unless you opt in.

 

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1177 N. E. Loop 410, San Antonio, Texas 78209