Processing Order Policy
What is “posting order”?
Posting order is the order in which transactions (debits and credits) are applied to your account during processing at the end of a banking day (Monday through Friday, excluding holidays).
What are credits and debits?
Credits are deposits or transfers of money into your account. Credits include cash or check deposits you make at the teller line, Automated Clearing House (“ACH”) credits such as automated payroll deposits, and online banking transfers you make from another account.
Debits are withdrawals or transfers of money out of your account. When you write a check or use your ATM/ debit card to withdraw funds or make a purchase, or make online transfers out of your account, we debit your account for the amount of the transaction.
Both debits and credits officially post to your account during evening processing. As a result, they do not always post in the order in which the transaction they represent occurred. The processing order applies for both business and personal accounts.
In what order do transactions post?
Assuming that all example transactions below are made and received by the Bank within the same banking day, they will post to your account in the following order:
- Deposits (subject to our Funds Availability Policy) and other credits to your account except for interest which is credited to your account after all transactions for the day are posted.
- Debits, in the following order, except Fees that are imposed against your account are posted as they are assessed.
- Force Pay Debits, in lowest to highest amount order
- Debit Memos, in lowest to highest amount order
- ATM Withdrawals, in lowest to highest amount order
- Transfers, in lowest to highest amount order
- Point of Sale, in lowest to highest amount order
- Check Card Transactions, in lowest to highest amount order
- ACHs, in lowest to highest amount order
- On Us Checks (a check cashed at one of our branches), in serial # order
- Transit Checks, in serial # order
Example: You withdraw $150.00 at an ATM. You make a debit card purchase at a merchant on the same day in the amount of $100.00 and use your PIN to authorize the transaction. The ATM withdrawal will post first, and then the $100.00 debit card transaction will post second.
If you make an ATM withdrawal or use a debit card to make a purchase and the amount of the transaction is greater than your available balance, the transaction will be declined unless you have opted in to Overdraft Privilege or have an Overdraft Transfer in place. If we cover the transaction this could create an overdraft which may result in an overdraft fee being assessed. The best way to ensure that you have sufficient funds to cover these transactions and avoid overdraft fees is to record all transactions in your check register as they occur and balance your account regularly. Remember that your available balance is generally reduced immediately when you use your ATM or debit card.
Please remember that your available balance is generally reduced immediately when you use your ATM or debit card.
Example: You write check # 102 to Aunt Mary for $50.00 and she cashes it at one of our branches that day. The same day you cash check # 101 for $150 at one of our branches. Since cashed checks are posted in serial number order the $150 check will post before the $50.00 check.
Example: You have an ACH (preauthorized) debits for insurance in the amount of $300 and a Bill Payment transaction for $100 which are both received by the Bank for payment on the same day. The transactions will post to your account from lowest to highest dollar amount.
Example: You write check # 103 for $65 check to the electric company on 11/15; you write check # 104 for $175 check to the phone company on 11/17; and you write check # 105 for $150 check to a retail merchant on 11/22. All three of these checks are presented for payment on 11/23. The items will post to your account in serial # order by lowest to highest. The check # 103 for $65 will post first, followed by check # 104 for $175 and then check # 105 for $150.
How do I best avoid fees that result from overdrawing my account?
The order in which we receive, process, and post transactions can affect the total number of NSF checks on your account and related overdraft fees and returned-check fees. The best way to prevent overdrafts and avoid the resulting fees is to keep an accurate record of all your account activities and ensure that you always have enough funds available in your account to cover all of your debit transactions. We suggest that you record transactions in your check register as they occur. Balance your account regularly and do not assume that it will be several days before transactions will post to your account.
First Exchange bank offers many tools to help you manage your account. You may check your balance at any of our branch offices or our ATMs; on our internet banking at www.firstexchangebank.com; using our mobile app; or by calling our Telephone Banking line at 304-333-6700 or out of area toll free 866-313-4990.