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Standard Overdraft Practices

This notice explains First Merchants' overdraft practice

Attention personal checking customers: 
If your accounts are not protected with Overdraft Protection Transfers or a Ready Reserve Line of Credit, and you use your debit card without sufficient funds, that transaction will be declined. You may avoid this situation ONLY if you authorize us to pay these type of transactions. Your authorization is called  “Opting In.” Opting In must be authorized by you and may be withdrawn by you at any time.

What is the standard overdraft practice that comes with my account?

We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments
  • Transactions processed through an Automated Clearing House (ACH)
  • Recurring debit card payment transactions

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to:

  • ATM withdrawals or transfers from your account
  • Everyday debit card transactions

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.

What fees will I be charged if First Merchants Bank pays my overdraft?

Under our standard overdraft practices the following fees are imposed:

  • We charge a fee of $37.00 each time we pay an overdraft.
  • Beginning on the fifth business day your account is overdrawn, an $8 fee may be charged each business day your account remains overdrawn. This charge is in addition to any Overdraft Item Fees or Insufficient Funds Charge assessed. These fees will affect your account balances.
  • The maximum number of Overdraft Fees that we can assess is limited to 6 per day.
  • Fees are not charged on items that create an overdraft balance of -$50 or less.

How does First Merchants Bank post items to my account?

  1. Deposits are credited to your account prior to posting any withdrawal.
  2. The next items that we post are ATM withdrawals, debit card transactions*, and any checks cashed by our employees or that you have written to us, in the order in which they are received.
  3. We then post any items that were submitted electronically, such as ACH items, preauthorized automatic transfers, telephone-initiated transfers and any other electronic transfers, in the order in which they are received.
  4. Finally, we pay the remaining items based on check number order.

*The amount of a debit card transaction is removed from your available balance in order to cover the transaction. This available balance is used to determine if you are in an overdraft status. There can be a delay of one or more business days before the transaction is actually presented to us for settlement. Therefore, there may be a short delay when the transaction actually appears on your statement.

What if I want First Merchants Bank to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, you must contact us. If you don’t want this service, no action is required. This choice may be changed at any time by you. If you still have questions please contact us at 1.800.205.3464.

  • Call: 1.800.205.3464 8 a.m.-8 p.m. ET M-F, 9 a.m.-3 p.m. ET Saturday
  • Click: Send a secure message within our Online Banking system
  • Visit: any banking center to authorize this service