Cash back is awarded based on eligible credit card purchases excluding transactions such as cash advances of any type, balance transfers, convenience check transactions, overdraft protection
transfers and quasi-cash transactions.
"We rely on nontraditional sources of income that community banks rely on, with overdraft protection
being a piece of it."
Part II presents background information on overdraft protection
programs and the corresponding regulation.
Banks consider overdraft protection
a courtesy that prevents customers from having their debit card transactions blocked for lack of funds.
Because of recent changes to federal banking laws, cardholders no longer will have access to overdraft protection
, thus making moot the issue of overdraft penalties.
Phone representatives who speak to customers about their choices under Regulation E, for instance, should not be incented to sell customers overdraft protection
or any other fee, product, or service that will make the bank money.
* Allow you to choose whether or not you want overdraft protection
of a bank account.
"These results show that many bank customers value debit card overdraft protection
and are willing to pay for the service," said Nessa Feddis, ABA vice president and retail banking expert.
Another type of overdraft protection
program involves a line of credit linked to your checking account.
Furthermore, attorneys are now prohibited from authorizing overdraft protection
on trust accounts (Rule 5-1.1(k), Rules Regulating The Florida Bar).
The Federal Reserve's consumer testing shows that most customers prefer to have important bills, such as mortgage, rent and utilities, covered by overdraft protection