Business Overdraft Fees Explained
What is a bank overdraft?
An overdraft is when the bank allows you to spend more money than you have in your account, rather than denying a transaction. It is always at the bank’s discretion to decide whether or not to let your account be overdrawn. The bank usually makes this decision systematically based on customer factors such as tenure with the bank, deposit frequency, overdraft history, bankruptcy history, etc. When the bank does allow your account to be overdrawn, you may receive an overdraft fee. 24-Hour Grace® for Business is included with your checking account. Now, if your business account is overdrawn, we give you an extra day to cover it and avoid a fee. And there is no fee if your balance is overdrawn by $50 or less. If the bank doesn’t allow your account to be overdrawn, your transaction will not go through and this can result in a return fee. Return fees cannot be waived by 24-Hour Grace®.
The best way to protect yourself from overdraft fees and returns fees is to know your balance and be sure you don’t try to spend money you don’t have.
Understanding different types of fees.
|What It Costs||What It Means||Would 24-Hour Grace® Apply?|
|Overdraft Fee ?||$36||Fee charged if we allow a transaction to go through even though you don't have enough money in your business' account. There is no fee if your balance is overdrawn by $50 or less. 24-Hour Grace® applies to Overdraft fees†.||
|Return Fee ?||$36||Fee charged when you don't have enough money in your business' account and we return an item (for example, a check is "bounced" or a transaction is returned unpaid)†. 24-Hour Grace® does not apply to Return fees.||
|Extended Overdraft Fee ?||$25||If your business' account is overdrawn for five consecutive business days, we will charge you a fee on the next business day (if your account is still overdrawn). While the account remains overdrawn, we will charge you an additional $25 fee every fifth business day up to a maximum of four fees, or $100. 24-Hour Grace® does not apply to Extended Overdraft fees.||
Ways to Avoid Overdraft Charges
Link a Business Savings Account or Money Market Account
Link a Huntington savings or money market account to a checking account as overdraft protection. Funds are automatically transferred provided there is enough money in the account to cover overdrafts. Automatic transfers are done in increments of $100§. There is no fee to use this service.
Link a Business Overdraft Line of Credit
Link a Business Overdraft Line of Credit as overdraft protection. Customer can apply for a line of credit up to $10,000. Funds are automatically transferred for the exact amount needed (if available)§. Funds deposited into the checking account automatically pay down the 0verdraft line of credit. Annual fee of 2% for the line of credit amount (waived with some checking products).
Link a Credit Card
Link a Voice Business Credit Card℠ to the customer’s business checking account as overdraft protection. The cash line (up to 10% of the customer’s credit card limit) is available to be set up for overdraft protection. Auto transfers are made to cover the exact amount of the overdraft¶.
Avoid overdraft fees with these tools and services.
Huntington Heads Up® alerts for business
The Hub for Business
Easily manage your finances with Spend Analysis for Business, Look Ahead Calendar for Business and Cash Position & Cash Flow Forecast tools in one dashboard.
All Day Deposit℠
We give you up until midnight when depositing through ATMs, our Mobile App, desktop scanners with Huntington Deposit Scan℠ or Remote Deposit Capture, so you don’t have to worry about earlier cut-off times.
Have more questions about overdrafts?
An overdraft is when the bank allows you to spend more money than you have in your account (for all types of transactions). A Returned Transaction, on the other hand, is when the bank does not allow you to spend more than you have in your account for transactions you make by Checks, Electronic Payments, or Transfers. (The bank usually systematically evaluates if the bank will pay an overdraft based on a variety of factors such as tenure, deposit frequency, overdraft history, bankruptcy history, etc.).
No. 24-Hour Grace® only applies to Overdraft Fees. 24-Hour Grace® is designed to give you until midnight the day after you overdraw your account to make a deposit or transfer that brings your account balance to the courtesy amount (including new transactions from that day) to avoid an Overdraft Fee. Extended Overdraft Fees are charged outside of the 24-Hour Grace® time period.
24-Hour Grace® gives you until midnight the day after you overdraw your account to make a deposit or transfer that brings your account balance to the courtesy amount (including new transactions from that day) to avoid an Overdraft Fee. For example, you overdraw your account on a Tuesday. You have until midnight on Wednesday to bring your account balance to the courtesy amount. You usually will receive some communication from us the business day after you overdraw your account, which is Wednesday in our example.
† We must receive your deposit by the next business day after your account is overdrawn by making a deposit at a branch before closing or before midnight at an ATM, by mobile deposit, or online transfer. Ensure your deposit covers all other transactions occurring that day in addition to the amount you are overdrawn.
24-Hour Grace® is a federally registered service mark of Huntington Bancshares Incorporated. All Day Deposit℠ and Voice Business Credit Card℠ are service marks of Huntington Bancshares Incorporated. The 24-Hour Grace® system and method is patented. U.S. Pat no. 8,364,581, 8,781,955, 10,475,118, and others pending.
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