When processing items drawn on your account, our policy is to pay in the following order. (1) ATM/Point of Sale items are paid first. (2) ACH items are paid next. (3) Checks and drafts are paid by lower check or serial number order after ATM/Point of Sale and ACH items. The order in which items are paid is important if there is not enough money in your account to pay all the items that are presented.
There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. If an item is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item (NSF).
The amounts of the overdraft and NSF fees are disclosed elsewhere. By paying items in numerical sequence, we believe our policy attains a reasonable balance between minimizing additional cost to you and paying your more important items. We encourage you to keep careful records and practice good account management. This will help you to avoid writing checks or drafts without sufficient funds and incurring the resulting fees.