Overdraft Protection

Protect your business reputation and reduce expenses with Overdraft Protection. Choose from three levels of protection to help avoid the embarrassment of a declined transaction, as well as the high cost of overdraft fees. 

Sweep Overdraft Coverage

Opt-in to sweep overdraft coverage, it works by transferring money from other accounts into your checking account – at $5 per transfer. You can use your Business Money Market account, another business checking account or a combination of these to fund overdraft coverage, as long as you designate one as a primary funding account. An eligible Line of Credit can also be used, but not in combination with your Business Money Market or business checking account.

Eligible Accounts:

Overdraft Safety Net*

Unless you opt out, Overdraft Safety Net is included with your eligible checking account.  Merchants Bank offers this service as an extra layer of overdraft protection to give you the confidence of knowing most of your checking transactions will go through – even if there’s a temporary negative balance in your account.  If you qualify, Merchants Bank will honor up to $600.00 beyond your available checking account balance. 

Overdraft Safety Net protection will apply to your eligible checking account even if you have not enrolled in Sweep Overdraft Coverage. Or, if you are enrolled in Sweep Overdraft Coverage, Overdraft Safety Net will apply once your Sweep Overdraft Coverage has been exhausted. 

Overdraft Safety Net applies when any of the following overdraw your account:

  • Checks
  • Recurring debit card transactions
  • Electronic funds transfers
     

Terms & Conditions

  • We honor up to $600 beyond your available checking account balance.
  • Overdraft fees charged to the account will reduce the available limit.
  • After one day, a continuing insufficient funds fee of $11.00 plus $0.75 per $1,000 per day will apply to overdrawn account balances.
  • Negative balances must be returned to a positive balance within 30 days to avoid loss of Overdraft Safety Net and closing of your account. Future overdraft items may be returned unpaid. An overdraft fee is charged regardless of whether a check or item is paid or returned.
  • Does not apply to Cash Management or IOLTA/IORTA accounts.
Debit Card Overdraft Safety Net*

Unless you opt out, Debit Card Overdraft Safety Net is included with your eligible checking accountDebit Card Overdraft Safety Net*  gives you the confidence of knowing your transactions will go through - even if there's a temporary negative balance in your account.  

This would include:

  • Paying one-time debit card transactions
  • ATM withdrawals
  • Transfers

Click here for Five Ways to Avoid Overdraft Fees.

*Safety Net Terms & Conditions

  • To qualify, accounts must be open for 60 days and maintain a $200 average balance.
  • Overdraft fees charged to the account will reduce the available limit. 
  • After three days, a $11 +$.075 per $1,000 day fee will apply to continuing overdrawn account balances.
  • Should your account become overdrawn by the use of this product, the Bank requires that the account be brought to a positive balance within 30 days. If that is not done, the Safety Net product will be removed from your checking account and future overdraft items may be returned unpaid. An overdraft fee is charged regardless of whether a check or item is paid or returned.