Regulation E is the legal act all banks must comply with in reference to electronic fund transfer systems such as ATMs, bill-payment services, point-of-sale (POS) terminal transfers in stores, and preauthorized transfers from or to a consumer's account (such as direct deposit and social security payments).
This regulation has recently changed. Consumers now must opt-in or opt-out if they want overdraft privilege on ATM or one-time debit card point-of-sale transactions. Opt-In/Opt-Out is only applicable to ATM and one-time debit card point-of-sale transactions. Selecting Opt-In means Overdraft Privilege will cover an ATM or one time debit card point-of-sale transaction and all applicable fees will apply (the same as the customer has today). Selecting Opt-Out means an ATM or one time debit card point-of-sale transaction will be declined if funds are not available and will not assess a fee. Opt-In/Opt-Out has no effect on ODP in regards to covering checks or ACH transactions.
Customers have the choice to Opt-In/Opt-Out at their convenience and discretion. You may click here to obtain Centennial Bank’s complete Overdraft Privilege disclosure.