Discretionary Overdraft Privilege Program



Merchants & Marine Bank will offer Overdraft Privilege to customers who hold eligible accounts. Overdraft Privilege is a discretionary service that allows payment of reasonable overdrafts. The Bank in its sole discretion can cease paying overdrafts at any time without prior notice of reason or cause.


Overdraft privilege is not a line of credit, but instead is a non-contractual courtesy that the Bank extends to customers holding eligible accounts. Payment by the Bank is not a right of the customer or an obligation of the Bank. The decision to pay items into overdraft is determined by account history and activity. The Bank will consider approving and paying reasonable overdrafts when:

  • A customer is not in default on any loan or other obligation to the Bank; and
  • A customer is not subject to any legal or administrative order or levy.

The Bank is not obligated to pay an item presented for payment if an account does not contain sufficient available funds. Any discretionary payment by the Bank of an overdraft check or items, does not obligate the Bank to pay another overdraft check or items, or to provide prior notice of its decision to pay an item. A negative balance may result from:

  • Payment of checks, electronic funds transfers, internet bill payments, ATM cash withdrawals, or debit card purchases.
  • Payments authorized by the customer
  • Return of unpaid items deposited by the customer
  • Imposition of applicable service charges

There is no cost to the customer for having Overdraft Privilege; however, an overdraft fee will apply to any transaction that overdraws an account including, but not limited to, payments authorized by check, ACH/electronic items, and if you have opted in, ATM withdrawals and debit card purchases. The total of the discretionary overdraft privilege (negative) balance, including any and all fees and charges, including all nonsufficient funds or overdraft fees is due and payable upon demand. The Depositor and each authorized signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Terms and Conditions.

The bank will charge off the full overdraft balance of any account, together with any accumulated but unpaid NSF/Overdraft or other charges. Charged-off account balances may be reported to a debt collection agency.

Transactions may not be processed in the order in which they occurred and the order in which transactions are received and processed may impact the total amount of fees incurred on your account. Checks are paid in numerical (check number) sequence with priority given to ATM transactions and electronic items. Some checks may be processed as electronic items.