Common use of Your Available Balance and Debit Card Transactions Clause in Contracts

Your Available Balance and Debit Card Transactions. For debit card transactions, we use your available balance at the time a transaction is authorized to determine if each specific transaction will overdraw your account and whether a fee will be assessed. Your available balance may not reflect all of your debit card transactions. For debit card transactions involving merchant authorization holds, we look at the available balance at the time a transaction is authorized to determine whether the transaction will result in an overdraft and a fee. If your available balance is insufficient to pay the preauthorization amount requested by a merchant, and you have not opted into Courtesy Pay for payment of everyday debit transactions, we will decline the request. If your available balance is sufficient to cover a merchant’s authorization request, the authorization request will be approved and an authorization hold will be placed on your account in the amount of the merchant’s authorization request. If your available balance is insufficient to cover a merchant’s authorization request, and you have opted in to Courtesy Pay for everyday debit transactions, we may choose to approve the authorization request. In the instance where your available balance was insufficient to cover a merchant’s authorization request at the time of authorization without causing the account to have a negative balance, and we choose to authorize the transaction using Courtesy Pay, we will charge a Courtesy Pay Fee on that transaction when it posts, regardless of the available balance in the account at the time of posting. Note that transactions authorized with a merchant as recurring debit card transactions may be covered by Courtesy Pay regardless of whether you have opted into Courtesy Pay for the payment of everyday debit card transactions. The following examples illustrate how this works if you have opted in for Courtesy Pay with respect to everyday debit transactions: • Assume your actual and available balances are both $50, and you use your debit card at a restaurant for $20. If the restaurant requests preauthorization in the amount of $20, an authorization hold is placed on $20 in your account, so your available balance is only $30, while your actual balance would remain $50. Before the restaurant charge is sent to us for payment, a check that you wrote for $40 posts to your account. Because your available balance is only $30, your account will be overdrawn by $10, even though your actual balance is $50. In this case, if we pay the $40 check under Courtesy Pay, we will charge you a Courtesy Pay Fee as disclosed in our Fee Schedule, which will be deducted from your account, further increasing the overdrawn amount. When the restaurant charge is finally submitted to us for payment, we will release the authorization hold and pay the transaction amount (which may be $20 or even a different amount, for example, if you added a tip) to the restaurant. Because the amount of the restaurant charge was authorized when the available balance in the account was sufficient to cover the transaction, we will not charge you a Courtesy Pay Fee. • Assume your actual and available balances are both $5, and you use your debit card at a store for $25. If the store requests preauthorization in the amount of $25, an authorization hold is placed on your account for $25 using Courtesy Pay and a Courtesy Pay Fee is charged because the available balance in your account was insufficient at the time the transaction was authorized. Regardless of the available balance in your account at the time this transaction posts, you will be charged a Courtesy Pay Fee for this transaction.

Your Available Balance and Debit Card Transactions. For everyday debit card transactions, we use your available balance at the time a transaction is authorized and again at settlement to determine if each specific transaction will overdraw your account and whether a fee will be assessed. Your available balance may not reflect all of your debit card transactions. For debit card transactions involving merchant authorization holds, we look at the available balance at the time a transaction is authorized to determine whether the transaction will result in an overdraft and a fee. If your available balance is insufficient to pay the preauthorization amount requested by a merchant, and you have not opted into the Courtesy Pay Overdraft Service for payment of everyday debit transactions, we will decline the request. If your available balance is sufficient insufficient to cover pay the preauthorization amount requested by a merchant’s authorization , and you have opted into Courtesy Pay for payment of everyday debit transactions, we may choose to approve the request. If we approve the request under Courtesy Pay, the authorization request will be approved and an authorization hold will be placed on your account in the amount of the merchant’s authorization request. However, we will not charge you a Courtesy Pay Fee unless your available balance is insufficient to pay the preauthorization amount when the transaction posts/settles to your account. If your available balance is sufficient to pay the transaction at the time it posts to your account, you will not incur a Courtesy Pay Overdraft Fee, even though your available balance was insufficient at the time the transaction was authorized. The only time you will incur a Courtesy Pay Fee with respect to an everyday debit card transaction is if you (1) have opted into Courtesy Pay for everyday debit transactions and (2) your available balance is insufficient to cover a merchant’s authorization request, and you have opted in to Courtesy Pay for everyday debit transactions, we may choose to approve the transaction at both the authorization request. In and the instance where your available balance was insufficient to cover a merchant’s authorization request at the time settlement of authorization without causing the account to have a negative balance, and we choose to authorize the transaction using Courtesy Pay, we will charge a Courtesy Pay Fee on that transaction when it posts, regardless of the available balance in the account at the time of postingtransaction. Note that transactions authorized with a merchant as recurring debit card transactions may be covered by Courtesy Pay regardless of whether you have opted into in to Courtesy Pay for the payment of everyday debit card transactions. The following examples illustrate how this works if you have opted in for into Courtesy Pay with respect to everyday debit transactions: • Assume your actual and available balances are both $50, and you use your debit card at a restaurant for $20. If the restaurant requests preauthorization in the amount of $20, an authorization hold is placed on $20 in your account, so your available balance is only $30, while your . Your actual balance would remain $50. Before the restaurant charge is sent to us for payment, a check that you wrote for $40 posts to your account. Because your available balance is only $3030 (due to the authorization hold of $20), your account will be overdrawn by $10, even though your actual balance is $50. In this case, if we pay the $40 check under Courtesy Pay, we will charge you a Courtesy Pay Fee as disclosed in our Fee Schedule, which will be deducted from your account, further increasing the overdrawn amount. When the restaurant charge is finally submitted to us for payment, we will release the authorization hold and pay the transaction amount (which may be $20 or even a different amount, for example, if you added a tip) to the restaurant. Because the amount of the restaurant charge was authorized when the available balance in the account was sufficient to cover the transaction, we will not charge you a Courtesy Pay Fee. • Assume your actual and available balances are both $5, and you use your debit card at a store for $25-$20. If When the store requests preauthorization in the amount of $25, an authorization hold is placed on your account for $25 using Courtesy Pay and a Courtesy Pay Fee is charged because debit transaction posts/settles to your account, the available balance in your account is still -$20. We will release the authorization hold and pay the transaction amount. Because the amount of the charge was authorized when the available balance was insufficient at to cover the time transaction, and the available balance was still insufficient to cover the transaction was authorizedat settlement, we will charge you a Courtesy Pay Fee. Regardless of $20. You deposit $100 into your account, bringing your available balance to $75.00 (the $100 deposit less the $25 authorization hold for the preauthorized debit transaction). When the $25 debit transaction posts/settles to your account, the available balance in your account is sufficient to cover the transaction. We will release the authorization hold and pay the transaction amount. Because the transaction settled/posted to your account at a time when the time this transaction postsavailable balance was sufficient to cover the transaction, we will not charge you will be charged a Courtesy Pay Fee for this transactionFee.