About ODP
Which account type does ODP apply to?
Checking accounts
After discussing Standard Privilege, your member states they don't plan to be negative in their accounts.
Life happens! Overdrafts can happen to anyone and it’s better to be prepared in the event of an emergency. When used, a fee of $35.00 per overdraft is assessed, but it costs nothing just to have it on your account.
Your member is upset and embarrassed that they had to leave their grocery order at the store this morning because their transaction declined due to insufficient funds.
Offer Extended Coverage to prevent this from happening in the future.
What's the first question you should ask a member who just opened a checking account to see if the Extended Privilege is applicable?
"Would you like to have a debit card with your checking account?"
How many options do members have for ODP? What are they?
3 options
1. Draw Accounts
2. ODLOC
3. Overdraft Privilege
Your member states they've had issues in the past at other FIs with overdrafting their accounts and they don't want to get themselves in trouble with that again.
Web24 Mobile App – view your available balance by logging on the app.
Or take advantage of Instant Balance – select the accounts you'd like to see the balances for without having to login!
Card Controls – you can set alerts so you are notified when your available balance hits a certain limit that you set. We also have spend limits you can set per transaction or per month.
Your member comes in with the Reg E offer letter that was mailed to any members who are currently eligible, and they are confused why they're receiving the letter.
Explain the features and benefits of Reg E and offer to extend coverage to their debit card and ATM transactions.
Your member says they would like a debit card on the checking account they just opened. Explain Reg E and how it applies to their debit card.
"The standard Overdraft Privilege can extend to your debit card and ATM transactions as well..."
What's the difference between Overdraft Privilege and Overdraft Protection?
Overdraft Privilege - utilizing the overdraft limit of either $250/$750 to pay for transactions that bring your checking account negative.
Overdraft Protection - utilizing your savings account or ODLOC to pay for transactions that bring your checking account negative.
Your member says they don't want Standard coverage because they don't want to be charged $35 fees.
"By removing your account from Overdraft Privilege Standard Coverage, your items will be returned and you will still be charged the $35.00 overdraft fee whether it is returned or paid. In addition, you may incur fees from the merchant as well."
How do you present Overdraft Privilege Standard? What does your conversation look like?
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Can a member choose to have Reg E coverage, but not standard?
No, but they can have standard and not Reg E.
What things would exclude an account from being eligible for ODP?
Minor Accounts
Members with charge offs with 360
Accounts with an active bankruptcy
Member has a loan more than 30 days past due
Negative balance more than 32 calendar days
Accounts with levies or garnishments
Dormant or inactive accounts
Accounts with suspicious or fraudulent activity
Business accounts, Trusts, or Estate accounts
Your member states they don't want to overdraw their account, and they would rather have their debit card declined if they don't have the money in their account.
“No problem. Please provide your signature and I will update your account. Please be aware, if there are insufficient funds in your account, your ATM or everyday debit transactions may be declined. Remember, you can change your mind at any time.”
How do you present Reg E coverage? What does your conversation look like ?
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How does Reg E coverage work when there are multiple debit card owners on the account?
Reg E applies all cards on the account. Opting in covers all cards associated with the account.
How many days in good standing until the ODP limit increases to $750?
90 days, increases on day 91
Your member states they are afraid of fraud and their savings account being drained.
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You are able to dispute transactions that you did not authorize if reported timely.
You are able to set alerts for card activity and transaction amounts.
You can set transaction controls so that your control what types of transactions your card will work for. E.g., in-store, online, atm, etc.
You can turn on your location and have transactions deny based off of your location or region."
Your member is upset about all of the fees charged to their checking account due to overdrafting over the weekend. You notice the member has plenty of funds to cover in their savings.
Discuss Sweep Accounts, alerts and card controls within Web 24.
What happens if a debit card transaction on a checking account is going to bring the account more than -$750 including the fee? (Assuming no other forms of Overdraft coverage are enrolled.)
The transaction will be declined.