Federal Reserve overdraft regulations regarding debit card transactions determine how Capitol Federal® must handle overdraft transactions for a customer's Visa® True Blue® Direct Debit Card.
An overdraft occurs when a Visa® True Blue Direct Debit Card is used for a purchase but there are not enough funds in the customer's Capitol Federal account to pay for it. Customers have the ability to make decisions about overdraft services for transactions made using the Visa® debit card. Customers must grant permission to apply these overdraft services to everyday debit card transactions before an overdraft fee may be charged.
To grant permission, customers will need to determine to "opt-in", granting Capitol Federal permission to apply standard overdraft services to the use of the customer's debit card. This means the customer agrees to allow Capitol Federal to charge an overdraft fee, should the Bank elect to approve a debit card transaction that causes the customer account to become overdrawn.
Should the customer decide to "opt-out", the customer is telling Capitol Federal they do not want the Bank to charge a debit card overdraft fee, thus the Bank would deny the debit card purchase at the time and place of the sale, if the account does not have sufficient funds for the purchase.
Whether you "opt-in" or "opt-out", you also may choose to register for an overdraft companion* link to one of your accounts within the bank, thus providing overdraft protection. While a fee may still be charged when your overdraft protection plan is used, it may be less than the standard overdraft method. You may utilize a companion account with your savings account, checking account, money market account or Execuline line of credit. Companion accounts do require registration in person at any Capitol Federal branch and certain restrictions apply.
*An Overdraft Protection Plan utilizing a companion savings, checking, money market or Execuline account requires registration. An Execuline line of credit is an open-end, revolving line of credit secured by a mortgage on your home, subject to credit approval. You may borrow up to 80 percent of the current market value of your home, less any outstanding mortgage balance (subject to program maximum loan amounts). You pay interest only on the amounts you borrow, with favorable rates. You must carry insurance on the property that secures this loan. Certain restrictions apply.