When you use your debit card to make a purchase, the merchant will request an authorization, in other words, an approval for the transactions. An authorization confirms that your account is open and active and that there are enough funds available to cover the purchase amount at the time of the request. The purchase amount sent by the merchant for authorizations varies by merchant type. Many merchants request an authorization for the exact purchase amount, but some merchants may send an authorization request for a nominal amount such as $1 or an estimate that is more or less than the actual purchase amount. The authorization hold amount reduces your available balance and will remain on the account for up to 3 business days when your debit card is swiped or inserted in person, or up to 5 business days when used for an internet, phone or mail order transaction. When the transaction is presented to the bank, the actual purchase amount is deducted from your account.
When you do not have enough available funds in your account to cover everyday non–recurring debit card purchases or ATM withdrawals, we will decline the transaction and you will not be subject to overdraft fees for those declined transactions. If you have enough available funds in your account to cover part of an everyday non–recurring debit card purchase, but not the full amount, some merchants will accept those available funds as partial payment and then allow you to pay the balance of your purchase from another source, or will allow you to reduce your purchase to fall within your available balance, such as by reducing the number of items in your cart.