24-Hour Grace® applies when Huntington pays a transaction from your account even though you don’t have enough money (your account becomes overdrawn1). 24-Hour Grace® gives you time to act—it doesn’t act for you. Note: 24-Hour Grace® does not apply if we decide to return the transaction2.
On Monday, you start with a $50.00 balance. Later that day we pay a check for $70.00 out of your account. Your balance at the end of Monday is (-$20.00). A $37.50 Overdraft Fee will hit your account on Tuesday.
$50.00 - $70.00 = (-$20.00)
$37.50 Overdraft Fee for tomorrow (if you don’t cure the overdraft with 24-Hour Grace®)
But what if we return (or “bounce”) the $70.00 check instead? In that case, your account balance stays at $50.00 because we don’t pay the check from your account (it doesn’t get into your account), but we send it back through the network that sent it to us. We charge you a $37.50 Return Fee that will hit your account on Tuesday. 24-Hour Grace® does not apply to Return Fees.
$50.00 - $0.00 = $50.00
$37.50 Return Fee for tomorrow (24-Hour Grace® is not applicable)
How quickly does a transaction hit my account?
Good question. We don’t see every transaction immediately. Depending on the type – check, debit card purchase, or automatic payment, for example – it could be the same day, or even a few days later. With checks, it depends on how soon the payee of the check deposits or cashes it.
How are transactions sent to the bank for payment?
Well, the short answer is through networks. When you write a rent or mortgage check, for example, that check is sent to us for payment through a check-clearing network. There are also debit card, ATM, and other electronic payment networks. Or a check, for example, can also be presented (cashed) in-person at our Huntington branches.
What is the difference between an overdraft and a return?
Here’s how that works. An overdraft is a transaction that is actually paid from your account (it reduces the balance in your account). And, after we pay it, your account balance is negative (below $0). For example, we pay a $50 check from your account when your account balance is only $20. A return is also a transaction for more money than is in your account. Here, however, instead of paying it from your account, we send it back through the network that sent it to us (it never gets into your account). For example, we “bounce” a $50 check when your account balance is only $20.
Why would the bank let a transaction overdraw my account?
Well, we assume you do transactions because you want them to happen. Paying them when they overdraw your account lets them happen. Whether we do this or not is within our discretion. We are never required to let you overdraft. But within limits we set, we may provide you this service. Maybe you don’t want us to let this happen? You can “opt out” of overdrafts for ATM and one-time debit card transactions with our Debit Overdraft Service. To get more information on our Debit Overdraft Service or to change your election, log into online banking, click on the “Customer Service” tab, and click on “Manage Huntington Debit Overdraft Service”.
Why would the bank return a transaction instead of letting it overdraw my account?
Returns normally occur with checks (“bounced” checks) or automatic payments when there’s not enough money in your account. We would rather not return them, but obviously we can’t let everyone overdraw all of the time. Part of our management of risk with deposit accounts is to decide when we pay and when we return transactions. That is generally based on your account history. We balance that decision between serving your need to have transactions paid and our need to manage risk. When we return a check or automatic payment, we charge a Return Fee. 24-Hour Grace® cannot be used to waive Return Fees.
Why can’t 24-Hour Grace® be used to waive Return Fees?
When we return a check or automatic payment, we don’t let it overdraw your account. Since the transaction doesn’t overdraw your account, there is no overdraft for you to fix or cure by making a deposit under 24-Hour Grace®. 24-Hour Grace® cannot be used to waive Return Fees.
Why would the bank block a transaction instead of letting it overdraw my account?
Blocking a transaction can usually occur with a debit card purchase or an ATM withdrawal. For these types of transactions, we usually get an electronic request from a merchant or from the ATM network before the transaction happens. That is known as an authorization request. Like with a return, if you don’t have enough money in your account, we have to decide to let it happen or not. That decision is generally based on your account history. We balance that decision between serving your need to have transactions happen and our need to manage risk. If we deny the authorization request, the transaction is blocked. Since in that case the transaction doesn’t happen, there is no fee.
Does 24-Hour Grace® let me write a check or make a debit card purchase when I don’t have enough money in my account?
No. 24-Hour Grace® is not a service that lets you spend more than you have. Instead, it only works after your account is already overdrawn. It’s a service that gives you more time to make a deposit to avoid Overdraft Fees once your account is overdrawn.
1 This means your account balance is negative or below $0.
2 This means we don’t let the transaction go through, but send it back where it came from and it doesn’t get into your account.