Overdraft Information
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Overdraft Information

Do I want to extend Overdraft Privilege to my ATM or debit card?


If you choose to extend your Overdraft Privilege to your ATM or debit card, those transactions are treated the same as any other type of transaction: if the activity creates a negative balance, the bank may pay the charge, creating an overdraft in the account, and thus the customer would incur an overdraft charge.

Studies have shown that bank customers appreciate the overdraft services they receive from their banks, as an alternative to having their charges denied.

You are giving the bank permission to approve ATM and debit card transactions that will create a negative balance in your account. As always, your account would then be charged our normal overdraft fee, and you will be expected to bring your account to a positive balance.

The bank will not be able to provide coverage for ATM and debit card transactions that would cause your account balance to be negative. If there are not sufficient funds in your account, the ATM and debit card transaction will be declined

There will still be certain debit card transactions that may cause your account to overdraft. These exceptions are explained below in the FAQ’s.



For more information, scroll down to read:

How Do I Opt-In?
Regarding Overdraft Regulation Change

How Can I Avoid Overdraft Fees?

What Overdraft Protection programs does First State Bank offer?

How do I opt in?


We offer several ways to Opt-In:


  • WEBSITE: The form can be accessed on our website.  Download and complete the form.  Once completed, the form can be faxed to
    (620) 285-3749, presented in person, or mailed to one of our Bank Centers:

    First State Bank & Trust Co.
    116 West 6th Street
    Larned, Kansas 67550

    First State Bank & Trust Co.
    7206 College Blvd.
    Overland Park, KS 66210

    First State Bank & Trust Co.
    906 East 1st Street
    Pratt, Kansas 67124


  • TELEPHONE: Call any of our Bank Centers or toll free at 1-800-711-1419 to opt-in by phone.


  • IN PERSON: Visit any of our Bank Centers to complete the form.


Overdraft Regulation Change FAQ’s


Q: Why do I have to do this?

A: A revision to Federal Regulation E was created so that consumers could choose to allow or not allow banks to authorize ATM and everyday debit card transactions if the account had insufficient funds and would be charged a fee for that service.

The regulation states that we need to receive permission (or as the regulation calls it, “opt-in”) from customers to continue to allow use of this service on an account. If you do not opt-in, we will not be able to approve card transactions that make an account negative, and your card will be declined.

Q: So by not opting-in I’ll never have a negative balance because my ATM or debit card will be declined? 

A: Not necessarily! There are a few ways that an ATM or Debit Card transaction can cause your account to be overdrawn even with an opt-out:

  • A preauthorized transaction (i.e., paying at the gas pump, adding a tip at a restaurant bill, or receiving a hotel reservation “hold”) could cause a negative balance. In these situations the business preauthorizes a transaction amount that might not be the final transaction total. A gas station might preauthorize $1 when you pay at the pump. If you have $2 in your account the transaction will be approved because the preauthorized amount is less than your balance. If you then spend $20 on gas your account will be overdrawn by $18. If you opt-out you will be responsible for the amount of money overdrawn but you will not be charged a fee.
  • An overdraft can also be caused by the timing of actual presentation (processing) of the transaction to your account. You may have sufficient funds in your account at the time of the transaction, but by the time the transaction is applied to your account, there may no longer be enough money to cover the transaction. This would cause a negative balance or an overdraft situation.

It is important to keep track of your transactions by keeping accurate records with monitoring and reconciling transactions frequently. Online Banking is a great way to see when transactions are applied to your account.

Q: Is there some other way I can have these kinds of transactions accepted without having an overdraft fee charged? 

A: Yes. We encourage our customers to have a savings or money market account at First State Bank. This account can be linked to your checking account so funds can be automatically transferred to your checking account, allowing the item to be paid without causing an overdraft. If you have a savings or money market account at a different bank, we are happy to assist you in transferring to First State Bank to take advantage of this service.

Q: How does this affect Overdraft Privilege?

A: Overdraft Privilege will continue to cover checks, recurring online bill payments and ACH payments. By opting-in you will extend the overdraft service to include ATM and everyday debit card transactions. Please note: By not opting-in to ATM and everyday debit card transaction overdraft coverage, you are NOT opting-out of Overdraft Privilege for checks, recurring online bill payments and ACH payments. If you do not want to receive Overdraft Privilege, you can complete an additional form. Please contact us for more information.

Q: Can I change my mind?

A: Sure! You can change your decision at any time by contacting the bank and completing a new form. However, it is important to note that changing your consent does not require the bank to waive or reverse fees that were incurred prior to the opt-out request.

Q: What if I have a combination of different transactions that cause the overdraft? Are you going to charge a fee if I do not opt-in?

A: The bank may charge an overdraft fee for checks, ACH, and recurring debit card or online bill pay overdrafts as normal. If one of these types of transactions causes an overdraft, we will charge our normal fee.

Q: I currently have Overdraft Protection Sweep; does this apply to my account?

A: It shouldn’t. When you use Overdraft Protection Sweep, an overdraft will not occur. There may be a rare instance that the Overdraft Protection Sweep account is low. In these situations, the opt-in or out status is very important because if you have opted-out, that transaction will be declined, if you opted-in, the transaction can be authorized and processed with an overdraft fee.

Q: What if I have more than one account? 

A: You may complete a different form for each account or list all of the accounts on one form. Please make sure to include the full account number so that there is no confusion on which account you would like to opt-in or out.

Q: Can I have different choices for different accounts?

A: Yes, you may have different choices for each account.

Q: I have a joint-account. Can one of us opt-in and one opt-out?

A: No. The account can only have one choice even if you have two or more ATM or debit cards. It is important to note that we will recognize the option chosen in the last communication from the account, determined by the date on the form.

Q: Does the rule apply to all personal accounts, including savings or money markets?

A: Yes. The rule applies to all accounts covered by the new regulation, including savings and money markets to the extent that they may be overdrawn by an ATM withdrawal or debit card transaction.

Q: What about Business Accounts? Does this regulation apply?

A: No. Currently this regulation does not apply to business accounts.

Q: Does this affect my checks, recurring online bill payments or ACH payments? 

A: No. These items will still be paid by the bank at our discretion. You may be charged our normal overdraft fee per transaction for this service.

Q: Can I opt-in during an ATM or everyday debit card transaction that is being declined?

A: Yes-during regular bank hours. Simply call the bank and opt-in by phone. We will make the change and the transaction will need to be run through again. We will then send you a written confirmation by mail of your consent to opt-in. A fee would be incurred when the transaction posts to the account. You do have the opportunity to avoid the fee by depositing money to cover the transaction prior to that day’s cut-off time (4:00 pm) at each location, Monday-Friday.



Tips to Help Avoid Overdraft Fees


Keep accurate records
Monitoring and reconciling checking account transactions are important for knowing your balance, avoiding overdrafts, and managing personal spending. Keeping accurate records helps ensure someone isn’t using your checking account for fraudulent purposes.

Use direct deposit for your paycheck
You can have access to your paycheck immediately, which is faster than a paper check. Ask your employer or benefits provider about direct deposit.

Don’t write a check if you don’t have the funds to cover it
Customers who rely on ‘floating’ checks, which is the time it takes for a check to clear the bank, will likely find themselves overdrawn as technology and transaction processing practices continue to improve.

Transactions don’t necessarily clear ‘in order’
Customers should be aware that account transactions, including checks, ATM transactions, and debit card purchases, may ‘clear’ an account at different times, and not necessarily in the order they were made. Keeping good records of all deposits and withdrawals is essential to knowing the actual, usable balance in your account.

Consider Online Bill Pay as an alternative to Automatic Payments
Having the cable company or other service provider take payments out of your account automatically is a convenient option but can cause serious issues with your account balance. For example, different companies have different procedures for how they handle a payment due date that falls on a holiday or weekend. It is your responsibility to know and understand your service providers’ authorizations with respect to the timing of your payments.

Online Bill Pay is a convenient alternative and allows you to schedule the specific date of the payment.  Repeat payments can be set-up allowing the convenience of automatic payments but keeping you in control.

Utilize email balance notifications 
Your Online Banking allows you to set up a variety of email notifications.  You can arrange to receive notifications if your balance falls below a certain level chosen by you.  To set up your notifications, log-in to your Online Banking account and click the “notifications” button.

Check your balance and account transactions often
First State Bank offers many free and simple ways for customers to check their balances and monitor account activity—online, by telephone, at an ATM, and in-person at one of our branches. Customers are encouraged to take advantage of these options to stay in touch with their account activity and balances. Keep in mind, however, that those balances will not reflect transactions that you may have authorized which have not yet been processed by the bank.

Link your checking account to a savings account  
Overdraft protection plans are an attractive alternative to overdraft fees. First State Bank offers options that let customers use the money in their own accounts to cover transactions in case of emergency or ‘just in case’. Contact First State Bank for additional information about our overdraft programs



First State Bank offers overdraft protection programs for the benefit of our customers


No one likes to bounce a check or have an electronic payment denied. For the occasional emergency or accounting error, we offer overdraft protection programs to help give you peace of mind.


Overdraft Privilege Service

  • Designed to help prevent returned checks on your personal checking account
  • Certain criteria must be met prior to this service being extended. Call ­­your local banking center for more information
  • We will consider, without obligation on our part, payment of your reasonable overdrafts up to your assigned Overdraft Privilege Limit, including overdraft fees.
  • We reserve the right to demand payment immediately.
  • Eligible transaction types include, without limitation: checks, ACH, ATM*, debit card transactions*, online banking bill payments and transfers, telephone banking transfers.
  • Certain criteria must be met prior to this service being extended. First State Bank will consider, without obligation on our part, payment of your reasonable overdrafts up to your assigned Overdraft Privilege Limit, including our normal overdraft fees, if your eligible account has been open for at least thirty days and thereafter you maintain your account in good standing, which includes at least :(A) Continuing to make deposits consistent with your past practices, and depositing at least $300 or more in your account within each thirty day period, (B) You are not in default on any loan obligation to First State Bank & Trust Co., (C) You bring your account to a positive balance (not overdrawn) at least once every thirty days and (D) Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien.


Overdraft Protection Sweep

  • Sets your savings account as overdraft protection for your checking
  • Transfers are made in $100 increments to cover overdrafts
  • $5 fee per transfer
  • No overdraft charges to your checking account if you have sufficient funds in your savings account


*As part of Federal Regulation E, customers must “opt-in” to receive this service on ATM and everyday debit card transactions.