Bounce Protection
What is Bounce Protection?
Bounce Protection is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit. This is provided your account has been opened 30 days and you have made two (2) deposits totaling $750 or more, maintained satisfactory activity in the account, including regular deposits, consistent with our internal standards for new account types that may offer Bounce Protection.
Your Bounce Protection limit may be available for checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic (ACH) payment transaction, automatic bill payment or recurring debit card payment. If you request us to do so (opt in), we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your available balance and Bounce Protection limit. Balances displayed do not include the Bounce Protection limit.
What does my Bounce Protection cost?
There is no additional cost associated with Bounce Protection unless you use it. If you use the Bounce Protection limit, you will be charged our Overdraft Fee, currently $30 for each overdrawn presentment created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, automatic bill payment or recurring debit card payment.
If you request us to do so (opt in), we may authorize ATM transfers or withdrawals and everyday debit card purchases by using your available balance and your Bounce Protection limit. An Overdraft Fee of currently $30 will be charged for each ATM or everyday debit card transaction that is authorized and posts against insufficient funds. Once opted in, you may revoke your authorization at any time by contacting us in writing at: 2201 Sherwood Way; 4206 College Hills Blvd.; 1815 N. Chadbourne.
In the normal course of business, we generally pay electronic transactions first and then checks (low to high serial number), per the bank’s policy, however checks are often converted to electronic transactions which may post to your account more quickly, affecting the order in which they post. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, the order we pay your presentments may create multiple overdraft presentments during a single banking day and you will be charged our Overdraft Fee of currently $30 for each overdraft presentment paid. Multiple paid presentments will result in multiple fees. For example, three paid presentments in one day will result in $90 in Overdraft Fees. To help manage your account, the total fees you have paid for presentments (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking statement.
How does Bounce Protection Work?
There are several ways your account can become overdrawn, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you (i.e. debit card at point of sale); (3) the return of unpaid presentments deposited by you; (4) bank service charges; or (5) the deposit of items which, according the bank’s Funds Availability Policy, are treated as not yet available. As long as you maintain your account in “good standing,” we may approve your overdraft presentments within your unused Bounce Protection limit as a non-contractual courtesy.
For Bounce Protection consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Bounce Protection as a continuing line of credit; and (3) have no legal orders, levies or liens against your account.
How do I know when I use Bounce Protection?
You will receive an overdraft notice each time presentments are paid, including fees. You will need to subtract the total fees when balancing your checkbook.
What is my Bounce Protection limit? If I have two checking accounts, can I get Bounce Protection on both?
Your Bounce Protection limit is $500. If you have multiple accounts for your household, you may have a limit on all eligible accounts. Texas Bank reserves the right to limit the participation to one account per household or sole proprietor or to suspend, revoke, or discontinue this service without prior notice.
What if I go beyond my Bounce Protection limit?
Normally, we will not approve an overdraft for you in excess of the predetermined limit assigned to your account. So as not to exceed your limit, please remember that the amount of the overdraft plus our Overdraft Fee of currently $30 for each presentment will be deducted from the Bounce Protection limit. Overdrafts above and beyond your established Bounce Protection limit may result in checks or other presentments being returned to the payee. You will be charged an NSF fee of currently $30 for each presentment returned. Returned presentments may be presented for payment by the payee or their financial institution multiple times, this will not result in multiple NSF fees. If our processing system charges you for representments on the same item, please contact us for a refund as it is our policy not to charge.
How quickly must I repay my Bounce Protection?
You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and must do so within 30 calendar days. If you are not able to do so, you will receive a letter from Texas Bank informing you that your Bounce Protection limit has been suspended and additional presentments will be returned. Unless we advise you differently or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.
What if I am having trouble repaying my Bounce Protection or use it frequently?
Please contact us at 325-949-3721 if: (1) you do not believe you will be able to bring your account to a positive end-of-day balance within the required time period; (2) find that you are using Bounce Protection more often than you intend; or (3) don’t understand why your account becomes overdrawn. We would like to discuss your situation with you.
We may refuse to pay an overdraft presentment at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft presentments if your account is not in good standing or if based upon our review of your account management, we determine that you are using Bounce Protection excessively or seem to be using Bounce Protection as a regular line of credit. You will be charged an NSF Fee of currently $30 for each presentment returned.
Following regulatory guidance, we will contact you if you are paying multiple overdraft fees (i.e., more than six fees in a rolling 12-month period), to discuss possible alternatives to Bounce Protection that may better meet your short-term credit needs. In the event you ask us to stop contacting you because you have determined Bounce Protection is appropriate for your needs, we will honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure Bounce Protection is still the most appropriate option available to you for covering your short-term credit needs or we may revoke the service due to excessive usage.
What are some of the ways I can access my Bounce Protection limit? Will my limit be reflected in the balance I receive?
The chart below shows the different ways you can access your Bounce Protection limit and indicates whether or not this limit will be reflected in the balance provided.
| Access Points | Is my Bounce Protection available? |
Does the balance provided reflect my Bounce Protection limit? |
| Teller | Yes | No |
| Writing a Check | Yes | N/A |
| Debit Card (recurring) | Yes | N/A |
| Debit Card (every day) | No** | N/A |
| ATM Withdrawal | No** | No |
| ACH – Auto Debit | Yes | N/A |
| Internet Banking | Yes | No |
| Bill Pay | Yes | N/A |
| Anytime Banking | Yes | No |
** Bounce Protection service will be made available for ATM or everyday debit card transactions on personal and sole proprietor accounts upon your request. Call 325-949-3721 or visit one of our three (3) convenient locations to arrange for your ATM and debit card coverage.
How soon can I use my Bounce Protection?
If you are a new customer, we will advise you 30 or more days after your account is opened that you may use the Bounce Protection service. This is provided you have made two (2) deposits totaling $750 or more, maintained satisfactory activity in the account, including making regular deposits, consistent with our internal standards for the account type for which the Bounce Protection is offered. Once you are notified your Bounce Protection limit is available to you, it may continue to be available provided you maintain the account in “good standing” as defined in this brochure.
What are some other ways I can cover overdrafts at Texas Bank?
The best way to avoid overdrafts and fees is to keep track of your account balance by entering all checks, debit card purchases and ATM withdrawals in your check register, reconcile your check book regularly and manage your finances responsibly. (Other suggestions may be found at https://www.fdic.gov/moneysmart and https://www.consumerfinance.gov/.)
Texas Bank offers additional ways to cover overdrafts in addition to Bounce Protection.
| Ways To Cover Overdrafts at Texas Bank | Examples of Associated Fees |
|---|---|
| Good account management | $0 |
| Link to savings account (automatic transfer) | $3 transfer fee* |
| Reserve Checking | 18% APR* |
| Bounce Protection | Overdraft Fee Currently $30 per presentment* |
*This information is effective as of May 2021 and is provided as an example. The number of transfers allowed from a savings account may be limited and additional fees for exceeding this limit may apply. APR – Annual Percentage Rate – subject to change. Please ask us about our current specific products, rates, and fees.
What if I do not want to have Bounce Protection on my account?
If you would like to revoke your previous authorization for ATM and debit card transaction coverage, or have this service removed entirely from your account, please notify Texas Bank in writing at: 2201 Sherwood Way, San Angelo, TX 76901, or visit one of our three (3) convenient locations to sign an opt-out form.
2201 Sherwood Way; 4206 College Hills Blvd; 1815 N. Chadbourne
While you may opt out of the privilege at any time, you are responsible for any overdrawn balances at the time of opting out.
Bounce Protection Customer Policy
There are several ways your account can become overdrawn, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you (i.e. debit card at point of sale); (3) the return of unpaid presentments deposited by you; (4) bank service charges; or (5) the deposit of presentments which, according to the bank’s Funds Availability Policy, are treated as not yet available.
While we are not obligated to pay any presentment presented for payment if your account does not contain enough money, as long as you maintain your account in “good standing,” we may approve your overdraft presentments within your unused Bounce Protection limit as a non–contractual courtesy. For Bounce Protection consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Bounce Protection as a continuing line of credit; and (3) have no legal orders, levies or liens against your account and 4) you are current on all obligations to the Texas Bank.
In the normal course of business, we generally pay electronic transactions first and then checks low to high serial number order, per the bank’s policy; however checks are often converted to electronic transactions which may post to your account more quickly, affecting the order in which they post. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, the order we pay your presentments may create multiple overdraft presentments during a single banking day and you will be charged our Overdraft Fee, currently $30 for each overdraft presentment paid.
You may opt out of the privilege at any time, but you are responsible for any overdrawn balances at the time of opting out. Normally, we will not approve an overdraft for you in excess of the predetermined amount assigned to your account. So as not to exceed your limit, remember that the amount of the overdraft plus bank’s Overdraft Fee, currently $30, will be deducted from the Bounce Protection limit. We may refuse to pay an overdraft presentment at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft presentments if your account is not in good standing as defined above, or, if based upon our review of your account management, we determine that you are using Bounce Protection excessively or seem to be using Bounce Protection as a regular line of credit. You will be charged a returned item fee, currently $30 for each presentment returned. It is our policy not to charge for representments. If our processing system charges you for representment on the same item please contact us for a refund of these fees. We will notify you promptly of any non-sufficient fund presentments paid or returned, however we have no obligation to notify you before we pay or return any presentment. The amount of any overdraft including our Overdraft Fee, currently $30 and/or an NSF fee, currently $30 that you owe us is due and payable upon demand even if we do not ask you for payment. You must repay us, no later than 30 calendar days after the creation of the overdraft. If there is more than one owner on the account, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts including all fees charged.
Bounce Protection should not be viewed as an encouragement to overdraw your account. To avoid fees, we encourage you to manage your finances responsibly by keeping track of your account balance and reconciling it regularly. Balances provided do not include the Bounce Protection limit.
Your Bounce Protection limit may be available for each presentment created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, automatic bill payment, or recurring debit card payment. If you request us to do so (opt in), we may authorize ATM transfers or withdrawals and everyday debit card purchases by using your available balance and your Bounce Protection limit. Your balance at the time these transactions post will determine the overdraft status and the assessment of fees. Other transactions initiated by you, or a delay in processing authorized transactions by the merchant, may result in previously authorized transactions posting against an insufficient balance. A paid item overdraft fee, currently $30, will be charged for each ATM or everyday debit card transaction that is authorized and posts against insufficient funds. Multiple paid presentments will result in multiple fees. For example, three paid presentments in one day will result in $90 in overdraft fees. To help you manage your account, the total fees you have paid for presentments (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking account statement.
If you would like to revoke your previous authorization for ATM and debit card transaction coverage, or have this service removed entirely from your account, please notify Texas Bank in writing at 2201 Sherwood Way, San Angelo, TX 76901, or come into one of our three (3) convenient locations.
LIMITATIONS: Bounce Protection is a non-contractual courtesy that is available to individually/jointly owned accounts in good standing for personal or sole proprietor use. Texas Bank reserves the right to limit participation to one account per household or sole proprietor and to suspend, revoke, or discontinue this service without prior notice. For new accounts, your limit will be made available to you, once your account has been open for 30 days, and you have made two deposits totaling $750 or more. If your limit is suspended, unless we notify you otherwise or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.
