Courtesy Pay Disclosure


A Discretionary Overdraft Service

Courtesy Pay:  Berkshire Bank (“we,” “our,” “us,” or “the Bank”) offers Courtesy Pay service for checking accounts. If your account is eligible for Courtesy Pay we will consider authorizing and paying debit transactions that exceed your account’s available balance, instead of automatically declining those transactions or returning them unpaid. Courtesy Pay is a discretionary service; the Bank is not obligated to authorize or pay any item that exceeds your available balance, and may cease authorizing and paying overdrafts at any time without prior notice of reason or cause. If you overdraw your account, you agree to immediately pay all fees, overdrafts and other amounts you owe us.

For our personal checking account customers, the standard Courtesy Pay service allows us to authorize and pay overdrafts for checks, other debit transactions made using your checking account number (e.g., ACH debit transactions), and automatic bill payments. We will not authorize and pay overdrafts for ATM or everyday debit card transactions for your personal checking account unless you have opted in to payment of these overdrafts (see Overdraft Opt-In Form). If you do not opt in, we will decline any ATM or everyday debit card transaction that exceeds your available balance.

For our business checking account customers, Courtesy Pay automatically allows us to authorize and pay overdrafts for all transaction types.

Both personal and business checking account customers may opt out of Courtesy Pay at any time. Personal checking account customers may also revoke their consent to Courtesy Pay for ATM and everyday debit card transactions without removing overdraft services for other transaction types. Visit a Berkshire Bank branch, call 800.773.5601, or log in to Online Banking for more information.

Courtesy Pay Eligibility: Courtesy Pay is typically extended only to accounts in good standing, which requires, but is not limited to, the following account characteristics: (a) open for at least 30 days; (b) deposits totaling at least $450.00 aggregate in the last six (6) months; (c) consistent deposit activity; and (d) not subject to any legal or administrative levy.

Courtesy Pay Limit: The Bank generally does not authorize or pay items that will overdraw a personal checking account’s available balance by more than $750.00 ($1,500.00 for business checking accounts), except as required by applicable payment network rules. Your account may become overdrawn in excess of the Courtesy Pay limit as a result of the assessment of a Bank fee, including but not limited to those described below.

When Fees Are Charged: We pay items based on your available balance. Your available balance, described in more detail below, is the amount of money in your account that you can use without causing an overdraft. If you exceed your available balance, you may incur the following types of fees:
  • Overdraft Fee - $37.00/item: Subject to the limitations described below, we will charge you an Overdraft Fee of $37.00 each time we pay an item that exceeds your available balance. For example, if we authorize a debit card transaction that exceeds your available balance, and later pay that item into overdraft, you will incur an Overdraft Fee. Similarly, if we pay a check or other debit transaction that exceeds your available balance, you will incur an Overdraft Fee.
  • UAF Overdraft Fee - $37.00/item: Under our Funds Availability Policy, the full amount of a deposit may not be added to your available balance on the day the deposit is made. We will charge you a UAF (Unavailable Funds) Overdraft Fee of $37.00 each time we pay an item that exceeds the funds available due to a hold on a deposit. See Funds Availability Policy for more information.
  • NSF Return Item Fee - $37.00/item: We will charge you an NSF (Non-Sufficient Funds) Return Item fee of $37.00 each time we return an item unpaid due to an insufficient available balance. For example, if you are not eligible for Courtesy Pay or have opted out of Courtesy Pay, and a check you have written is presented to the Bank for payment against an insufficient available balance, we may return the item and charge you an NSF Return Item Fee. Please be aware that third parties sometimes re-submit items that we return unpaid, which can result in additional Overdraft, UAF Overdraft or NSF Return Item Fees.
  • Limitations on Overdraft Fees: For personal checking accounts, we will not charge more than five (5) Overdraft Fees, UAF Overdraft Fees, and NSF Return Item Fees, in total (up to $185.00), on any one business day. In addition, we will not charge an Overdraft Fee or UAF Overdraft Fee for paying into overdraft a debit transaction that is less than $4.49. You will not be charged fees for overdrafts caused by ATM withdrawals or everyday debit card transactions unless you have opted in to overdraft services for those transaction types (see Overdraft Opt-In Form). These limitations do not apply to business checking accounts.
  • Continuous OD (Overdraft) Fee - $35.00: You are obligated to repay your overdrafts immediately. If your account remains overdrawn for five consecutive business days, you will be charged a Continuous OD Fee on the fifth such day, and each fifth business day thereafter, up to a maximum of five (5) charges (totaling $175.00), until you bring your account to a positive balance. Other Bank fees (including but not limited to those described above) can result in a negative balance, which can lead to the assessment of a Continuous OD Fee. The Continuous OD Fee is in addition to Overdraft, UAF Overdraft or NSF Return Item Fees that are assessed to your account for overdrafts or returned items.
Your Available Balance and Information about Holds: Your available balance is the amount of money in your account that you can use without causing an overdraft. Your available balance includes all credits and debits that have posted to your account, and is reduced by any holds on your account, including authorization holds and deposit holds. Funds subject to a hold, dispute or legal process are not included in your available balance.

Authorization Holds: When you use your debit card to make a purchase, there is often a delay between the date you initiate (and we authorize) the transaction, and the date the merchant submits it to us for payment. The Bank places a hold on your account for any authorized debit card transaction at the time we authorize it until we pay it. The amount of the hold will be the amount we have authorized, based on the request we receive from the merchant, or as permitted under applicable payment network rules. If an authorized transaction is not presented to the Bank for payment within three (3) business days after we first apply the hold, we will release the hold from your account.

Authorization holds reduce your available balance. An authorization hold can result in Overdraft Fees, UAF Overdraft Fees or NSF Return Item Fees if additional items are presented for payment that exceed the reduced available balance resulting from the hold. Here is a hypothetical example of how that can occur. Your account has an available balance of $100, and you swipe your debit card at a grocery store to make a $70 purchase. The Bank authorizes the payment, allowing you to make the purchase. When the Bank authorizes the payment, it immediately places a hold on your account for the $70 authorization, reducing your available balance to $30 ($100 minus $70). The grocery store does not submit the authorized amount of $70 to the Bank for payment until three days after your purchase. Before it does so, a check you wrote for $50 clears. Because the authorized grocery store purchase reduced your available balance to $30 before the $50 check cleared, the check will overdraw your account by $20 even though the authorized amount of $70 has not been paid to the grocery store, and you will be charged an Overdraft Fee.

The amount of an authorization hold may not equal the amount the merchant ultimately presents for payment. Certain merchants (for example, hotels and gas stations) may submit authorization requests that exceed the prices of the goods or services ultimately purchased. If an authorization hold is pending on your account, and another transaction is presented for payment that exceeds your available balance, you may be charged a fee even if you would have had a sufficient available balance to cover the item if the amount of the authorization hold was equal to the amount of your purchase.

Deposit Holds: Deposit holds are different from authorization holds. Please read our Funds Availability Policy for a detailed discussion of how and when we make deposited funds available to you. Our general policy is to make funds from your check deposits available to you on the first business day after the day we receive your deposit, but many exceptions apply. If you withdraw funds before they become available, you may incur a UAF Overdraft Fee.

Your available balance may change during the course of a day as debit transactions and deposits are made. The available balance disclosed to you by the Bank may not include all of your transactions, such as checks you have written that have not yet cleared or upcoming automatic payments. It is your responsibility to keep track of your available balance as you conduct transactions in order to avoid overdrafts and fees. Your monthly account statement does not report the holds affecting your account on any given day; as a result, the daily balances reported in your statement may not reflect your available balance(s) occurring on that day. If you have questions about your statement or overdrafts you have incurred, please contact us at 800.773.5601 or visit one of our branches.

Payment Order of Items: The order in which items are processed and posted to your account may affect the total amount of Overdraft Fees, UAF Overdraft Fees or NSF Return Item Fees you may incur. Items are processed and posted to your account at the end of each business day, as follows:
  1. First, we add to your available balance deposits or other credits that have become available to you thatbusiness day in accordance with our Funds Availability Policy.
  2. Next, we subtract from your available balance the amount of any holds for debit transactions that have beenauthorized but not yet presented to the Bank for payment. See above for more information aboutauthorization holds.
  3. We then subtract from your available balance items presented to the Bank for payment against youraccount in categories by type of transaction. In general, your time-stamped items such as debit cardtransactions and ATM withdrawals are deducted in chronological order by category, followed by ACHtransactions and checks in low-to-high order by category. Please refer to the Terms and Conditions of YourAccount for a detailed description of our payment order.
Your account statement does not necessarily report debit and credit transactions in the order that they occurred or in the order that they were posted to your account.

Avoiding Overdrafts and Fees: You can avoid fees for overdrafts by making sure that you always maintain an available balance sufficient to cover all of your transactions. We offer services that you can use to help you manage your account and avoid fees, such as Online/Mobile Banking and Account Alerts. You also may apply for Reddi-Cash (the Bank’s personal line of credit product), or link your savings or money market account to your checking account. These alternative protection plans may be less expensive than our standard overdraft services.

Overdrafts should not be used to pay ordinary or routine expenses and you should not rely on overdrafts as a means to cover these expenses. If at any time you feel you need help with your financial obligations, please contact one of our customer service representatives at 800.773.5601 or visit your local branch office.

REV 7.1.2020