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An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. Unico Bank recognizes that a non-sufficient funds situation may occur on your account(s) from time to time. We can cover your overdrafts in 3 different ways.
Overdraft Protection Transfer such as a link to another Unico Bank account automatically transferring available funds, which may be less expensive than our standard overdraft practices.
Eligible Unico Bank accounts include:
If the linked account for overdraft protection does not have sufficient funds to cover the overdraft, the available balance in the linked account will be transferred to reduce the overdrawn balance. There is no fee for automatic transfers, but transaction limitation fees and/or minimum balance fees may be assessed based on the from account type.
Standard Overdraft Practices that come with your account. What are the standard overdraft practices that are available?
We may authorize and pay overdrafts for the following types of transactions:
We do not authorize and pay overdrafts for the following types of transactions:
Designated overdraft fees will apply. See section called Fees for Services.
You may decline standard overdraft coverage for your account(s). In this case, checks and electronic (ACH) debits will be returned, and ATM and everyday (non-recurring) debit card transactions will be declined if there are insufficient available funds in the account to cover the transactions. However, recurring debit card transactions may still be paid into overdraft, which may result in an overdraft fee. Declining overdraft coverage will not prevent all overdrafts – it means we will decline to authorize transactions at the point of sale if the money is not available at the time of the transaction.
Courtesy Pay Program assists you with short-term payment needs, provides you with convenience and a less expensive alternative to check cashing and payday loan establishments and the costly fees, interest, expenses, litigations, and prosecution that can result from the use of such short-term payment alternatives. Courtesy Pay also assures that mistakes made in an account holder’s check register will not inadvertently result in a bounced check, thus helping account holders retain good credit histories and reputation with merchants and the financial community.
What are the overdraft practices available with the Courtesy Pay Program?
We do authorize and pay overdrafts up to $500.00 including fees for the following types of transactions:
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to:
Courtesy Pay is offered to all account holders that meet the eligibility requirements and who have affirmatively opted in to the Courtesy Pay program.
For consumer accounts we will not charge overdraft fees for ATM or one-time debit card transactions, unless:
We provide the consumer with a notice, in writing, (or if the consumer agrees electronically), which will be segregated from other information, explaining the overdraft service; and
The consumer is given a reasonable opportunity to opt-in (approve); and
The consumer does opt-in (approve) to the overdraft service; and
We provide the consumer with confirmation of the consumer’s consent in writing, or electronically if they choose. The confirmation will include a statement that the consumer retains the right to opt-out of the consent at any time.
By “reasonable opportunity” to opt-in, as noted above, we will offer our consumers reasonable methods by which they may provide affirmative consent. These methods include:
Unico Bank will maintain the appropriate documentation of your opt in decision. Absence of an affirmative opt-in by the consumer will be treated as an opt-out.
All consumers will be offered the same account terms, conditions, and features regardless of whether they opt-in or opt-out of our Bank’s overdraft payment service.
Fees for overdrafts will be assessed based on the consumer’s opt-in or opt-out decision and the regulatory requirements.
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft your transaction will be declined.
Generally, we will not pay overdrafts more than $500.00 per account.
Deposits made prior to 10am on the business day following a transaction which resulted in a negative balance will be considered before decisioning item(s) that would otherwise be returned as a non-sufficient (NSF) transaction(s); however, transaction fees will still apply.
Qualifications and Eligibility
Eligible Accounts:
Free Checking
Checking Plus
Super NOW Accounts (only existing customers who already have this product)
USA Senior Accounts
Sole Proprietorship Accounts
Partnerships
Ineligible Accounts:
Money Market Accounts
Premier Money Market Accounts
Savings Accounts
HSA Accounts
Christmas Club Accounts
New-U Checking
Accounts for Executive Officers, Directors, and Related Interests
Trust Accounts
Estate Accounts
Minor Accounts
Non-Profit Accounts
Power of Attorney Accounts
Representative Payee Accounts
Deceased – Account Individually Owned
Corporations
LLC Accounts
Dormant Accounts
Eligibility Criteria:
Account holder(s) has opened a qualifying checking account
Account holder(s) has satisfied the minimum waiting period of 90 days
Account holder is at least 18 years old
Account holder(s) has a current mailing address
Account holder(s) has no Unico Bank loan delinquency of 30 or more days
Account holder(s) are not in bankruptcy status
Account holder(s) have not had any legal orders, garnishments, administrative levies, or liens against them in the prior 12 months.
Account holder(s) has no unpaid/outstanding written off DDA or written off loan balances.
All prior written off DDA or written off loan balances have been paid in full for no less than 12 months before being considered for Courtesy Pay on a new or existing account.
Account holder(s) has qualifying deposit(s) that total more than $500.00 during the most recent 30-day period
Account does not exceed the per person/per household limitations as set forth in this policy
Account has not had more than (5) overdrafts in the most recent 30-day period
Account holder(s) has no other account in an overdraft status
Unico Bank reserves the right to cancel or deny services at any time and for any reason. Only the bank’s Courtesy Pay Administrator and/or their staff can approve/add Courtesy Pay to a customer account.
Qualifying Deposit(s):
ACH Deposit(s) – Payroll, Retirement, SSA, SSI
Over the Counter – Weekly/Bi-Weekly/Monthly Payroll Deposit(s)
Qualifying deposits total more than $500 during the most recent 30-day period
Non-Qualifying Deposit(s):
Person to Person Transfers/Payments (PayPal, Venmo, Cash App, etc.)
Payday Loan Deposit(s)
Third Party Non-Payroll Check Deposit(s)
Annual State or Federal Tax Return Deposit(s)
Unemployment Benefits
Account to Account Transfers
Consumers will be notified of their eligibility for the program and will be given an opportunity to opt-out of the program and have all non-sufficient funds (NSF) transactions returned unpaid, with the standard returned item fees assessed. Unico Bank gives our consumers the opportunity to affirmatively choose the overdraft payment product that overall, best meets their needs.
Customers who do not qualify for or opt out of the Courtesy Pay Program still qualify for the Standard Overdraft Practices that come with their account unless they choose to opt out of the Standard Overdraft Practices.
Eligibility Limits
Courtesy Pay is limited to $500 for one account per person/household.
Fees for Services
Each time the service is triggered, and an item is paid as an overdraft or returned, the fee disclosed in the following fees sections will be assessed.
Overdraft Transactions and Overdraft Fees
We may, at our discretion, pay (cover) payment transactions that overdraw (or further overdraw) an account, as determined by the actual (ledger) balance (an overdraft transaction). However, the fact that we may pay for overdraft transactions does not obligate us to do so later. So, customers CANNOT rely on us to pay overdraft transactions on their account regardless of how frequently or under what circumstances we have paid overdraft transactions on their account in the past. We can change our practice of paying, or not paying, discretionary overdraft transactions on an account without giving notice to the customer. Customers can ask us if we have other account services that might be available to them that may prevent an overdraft transaction, such as linking another account they have with us, to automatically transfer available funds as needed. Customers agree that we may charge a fee for each overdraft transaction paid by us. We may use subsequent deposits, including direct deposits of social security or other government benefits, to cover such overdraft transactions and overdraft fees.
An overdraft fee for an overdraft transaction is posted to the account on the business day after the business day on which the overdraft transaction was posted to the account.
If Unico Bank pays an overdraft on an account with more than one owner on the signature card, each owner (or agent of owner) is jointly and severally liable for payment of the overdrawn amount plus any fees.
Effective: June 1, 2026
The amount of Overdraft Fees is as follows and are based on the item amount of each overdraft transaction:
If the amount of the overdraft item is $0.01 to $5.00 $5.00 per overdraft transaction
If the amount of the overdraft item is $5.01 to $15.00 $10.00 per overdraft transaction
If the amount of the overdraft item is $15.01 to $30.00 $20.00 per overdraft transaction
If the amount of the overdraft item is $30.01 or more $30.00 per overdraft transaction
Daily limit on Overdraft Fees $300.00 per business day
Overdraft Fees on Authorized ATM Withdrawals and One-Time Debit Card Transactions
Whether we assess an overdraft charge for ATM and/or one-time debit card transactions will be determined as below.
If you do NOT have Courtesy Pay. If you do not have Courtesy Pay, we will not charge an overdraft fee for any ATM withdrawals and/or one-time debit card transactions even if the transaction(s) settles as an overdraft transaction.
If you “HAVE” Courtesy Pay AND did “NOT” authorize us to pay overdrafts on ATM and/or one-time debit card transactions. If you have Courtesy Pay but did not authorize us to pay overdrafts on ATM and/or one-time debit card transactions we will not charge an overdraft fee for any ATM and/or one-time debit card transactions even if the transaction(s) settle as an overdraft transaction.
If you “HAVE” Courtesy Pay AND “Authorized” us to pay overdrafts on ATM and one-time debit card transactions. If you have Courtesy Pay and authorized us to pay overdrafts on ATM and/or one-time debit card transactions we will charge an overdraft fee for each ATM withdrawal and/or one-time debit card transaction(s) in which available Courtesy Pay funds were included as part of the available balance used to authorize all or a portion of the transaction and the transaction posts and settles as an overdraft transaction. By authorizing us to pay for overdrafts on ATM and one-time debit card transactions you are allowing Courtesy Pay funds to be included as part of the available balance which is used to authorize ATM withdrawals and/or one-time debit card transactions that otherwise would have been denied.
We will not charge a fee for ATM withdrawals and/or one-time debit card transaction(s) in which available Courtesy Pay funds were included as part of the available balance used to authorize all or a portion of the transaction but the transaction posts and settles with a positive balance not including Courtesy Pay funds.
Effective June 1, 2026, we will not charge overdraft fees for transactions that are “Authorized Positive Settled Negative”.
“Authorized Positive Settled Negative Transactions” or “APSN Transactions” occur when we authorized an ATM withdrawal or one-time debit card transaction when the account had a positive “available balance” not including Courtesy Pay funds and the transaction later settled and there were no longer funds available to cover the transaction. While a pending, authorized ATM withdrawal or one-time debit card transaction reduces the “available balance,” it does not reduce the actual (ledger) balance until and unless it is settled and posted to the account. If an ATM withdrawal or one-time debit card transaction is authorized and not settled and posted to the account on the same business day, another intervening payment transaction may post to the account and reduce the actual (ledger) balance so there is no longer enough money in the account to pay for the pending, authorized ATM withdrawal or one-time debit card transaction when it is eventually settled and posted to the account.
By authorizing an ATM withdrawal or one-time debit card transaction we do not warrant there will be enough money in the account to pay for the pending, authorized ATM withdrawal or one-time debit card transaction when it is eventually settled. You are still liable to us to pay for any negative balances which may result upon transaction settlement.
Overdraft Fees on Recurring Debit Card Transactions
We will charge an overdraft fee(s) for “recurring” debit card transactions that post to an account as overdraft transactions.
NSF Transactions and Returned Item Fees
If, as determined by the actual (ledger) balance, there is not enough money in an account to pay a payment transaction that is presented to us for payment and we decide not to pay (cover) the payment transaction, you agree that we can charge a Returned Item Fee for returning the payment transaction to the person or entity that presented the payment transaction to us for payment (an NSF transaction). You are made aware that such a payment transaction may be presented to us for payment multiple times and that we do not monitor or control the number of times that a payment transaction is presented to us for payment. You agree that if the amount of money available in your account is not sufficient to cover a payment transaction, we may charge them a Returned Item Fee each time the payment transaction is presented to us for payment, regardless of the number of times the payment transaction is presented, as each such instance constitutes a separate transaction.
Effective: June 1, 2026
The amount of Returned Item Fees is as follows and are based on the item amount of each NSF transaction:
If the amount of the NSF item is $0.01 to $5.00 $5.00 per NSF transaction
If the amount of the NSF item is $5.01 to $15.00 $10.00 per NSF transaction
If the amount of the NSF item is $15.01 to $30.00 $20.00 per NSF transaction
If the amount of the NSF item is $30.01 or more $30.00 per NSF transaction
Daily limit on Returned Item Fees $300.00 per business day
Termination of Services
Account holders may request to terminate their access to the Courtesy Pay program at any time by contacting Unico Bank.
Courtesy Pay services may be suspended and/or revoked at any time at the discretion of the bank and/or if the account holder is no longer eligible for the services. This may include but is not limited to the following:
Failure to make a qualifying deposit during the most recent 31 days
Failure to bring the account to a positive balance for at least one full business day during the last 31 days.
Unico Bank loan delinquency of 30 days or more
Any legal or administrative order, levy, or garnishment exists against an account
Notification of bankruptcy proceedings
Engaging in activities that indicate irresponsible account management, such as excessive overdrafts, misuse of the Courtesy Pay Program, account abuse, or attempting to defraud the bank in any way
Returned Mail and/or notification of invalid address
Unpaid written off DDA or loan balance on any other Unico Bank account
Accounts are found to have exceeded the per person/per household limitations
Account holder becomes deceased – Individually Owned Account or All account holders deceased on a jointly held account
The Courtesy Pay program is considered unconditionally cancelable and therefore the bank may deny or revoke access to the program at any time and without cause.
Reconsideration of Services
A customer may request a reconsideration of services 90 days after their Courtesy Pay Services have been denied or terminated and the customer meets all eligibility requirements to be considered for reinstatement. Eligibility requirements for reconsideration include:
Account holder has satisfied the 90-day minimum waiting period for reconsideration.
All accounts held by account holder(s) have been in good standing for the preceding 90 days.
Account holder(s) has qualifying deposit(s) that total more than $500.00 during the most recent 31 days.
Account has a current mailing address on file.
Account holder(s) has no Unico Bank loan delinquencies of 30 days or more.
Account holder(s) is not in bankruptcy status.
Account holder(s) has not had any legal or administrative order, levy, or garnishment against the account in the previous 12 months.
All prior written off DDA and/or written off loan balances have been paid in full no less than 12 months prior to reconsideration.
Account may not exceed the per person/per household limitations. *Even if the account was previously grandfathered in during the initial launch of the Courtesy Pay Program.
A Courtesy Pay Reconsideration form must be completed and submitted to the bank’s courtesy pay administrator for approval and implementation. The approval process may take up to 5 business days to review and complete.
Communication of Policy and Program Disclosures to Customers
When the bank amends this overdraft protection program or changes its fee structure regarding paid or returned items, it will communicate such changes to all existing customers at least thirty (30) days prior to implementation. Notification can be made by posting a notice of the change in the lobby of the bank, by statement messages or inserts, or by other acceptable means.
Customer Notification
Consumers will be advised of the eligibility of their accounts for the service, and details of the program will be provided, in a clear and meaningful manner, via mailings, internet banking, and in-house materials such as brochures.
At drive-through locations and on proprietary ATMs, a specific consumer notice will be provided advising that completing the requested withdrawal may trigger overdraft fees. We will prominently distinguish balances in accounts without the overdraft protection limit available when requested to provide an account balance at a teller window. Balances provided by any automated system will not include an overdraft coverage amount.
Consumers will be notified promptly each time usage under the discretionary limit occurs. The notifications will include:
The date of the transaction
The type of transaction
The overdraft amount
The fee associated with the overdraft
The amount necessary to return the account to a positive balance
The amount of time the consumer has to return the accounts to a positive balance and the consequences of not returning the account to a positive balance within the given timeframe
Consumers who are chronic users of the overdraft service will be provided information about an alternative that allows us to automatically transfer funds from other accounts, if any, when the consumer’s account slips below the amount needed to pay a withdrawal.
Consumers will be notified if we terminate or suspend access to the service.
Account Alerts
The bank’s online banking system has the capabilities to notify customers via email or text message when they reach a certain dollar limit in their account. Customers may utilize this feature as an advance warning of when they are at risk of generating a fee for non-sufficient funds.
To learn more visit www.unicobank.com and click on Services, Online Banking, Notifi Account Alerts.
Under Notifi Account Alerts you can choose how you wish to receive your alerts. Options are:
Email
Text Message
App Notification – Alert on Mobile Phone
Secure Inbox inside of Internet Banking
Then choose the custom alerts you want to receive. Options are:
User ID/Password changes
Balance Alerts if your account falls below a set amount
Set Day and Time to receive account balance
Transaction over set amount
Deposit Posted
Withdrawal over set amount
Transfer Alerts
Loan Alerts
ATM/Debit Card
Broadcast Alerts – Receive important messages from my bank
Much, much more
Posting Order of Payment Transactions (Effective June 1, 2026)
After the close of each business day, we post all payment transactions that are presented to us for payment on that business day. The order in which payment transactions are posted to an account is important if there is not enough money in an account, as determined by the actual (ledger) balance, to pay all such payment transactions.
First, we post deposits and other credits to an account.
Second, we post real time transactions and internal pre-authorized debits. This includes but is not limited to the following: over-the-counter withdrawals, ATM withdrawals, one-time debit card transactions, recurring debit card transactions, ATM CCA Fees, ATM ISA Fees, ICS transfer withdrawals, wire transfer debits, reclamations, deposit return items, account transfers made in-person or over the phone, online banking transfers, telephone banking transfers, automatic loan payments, internal recurring/automatic transfers, club distributions, and safe deposit box payments. These items are posted in chronological order based on the date and time that our records indicate the transactions were initiated or authorized.
If two transactions have the same date and time we will post the smaller dollar amount transaction first. If we do not have a date/time for transactions we will post the transactions in ascending dollar amount (smallest to largest) after we post transactions with date/time information.
Third, we post checks, electronic checks and drafts, ACH transactions, bill pay transactions, and any other payment transactions to an account according to dollar amount with the smallest such payment transactions being processed first.
Last, we post all service charges to an account. This includes but is not limited to the following: statement service charges, wire transfer fees, ATM transaction fees, return item fees, dormant account fees, stop payment fees, miscellaneous fees, and any overdraft fees and/or returned item fees that we charge for payment transactions that posted to your account on the previous business day.