An institution may not charge overdraft fees for paying an ATM or one-time debit card transaction
unless the consumer has opted in. When we open a checking account, and the customer gets a debit
card, we have them opt in or out – is the opt in per checking account or debit card. If the customer opted
in but cancels the card because of fraud or the card is lost do we have to get them to opt in or out again. I
was thinking it was per checking account. Please advise.
The opt-in is related to the account, not the card. If a consumer opts in under Reg E section 1005.17
to overdraft service (and fees) for ATM and one-time debit-card transactions, replacing the consumer's
debit card, regardless of the reason for the replacement, does not affect the opt-in status.
Added question: And is the opt in to Reg E ATM or one time POS only if you have an overdraft
service right? If the customer does not want our overdraft service then there is nothing to opt in to?
Correct. Just remember that certain debit card transactions may, in fact, overdraw the account due to
the inherent delay in posting debit card transactions that are routed via the credit card networks. You
cannot prevent those overdrafts, and you cannot charge an overdraft fee when they occur.
Compliance Lifeline