ELECTRONIC FUNDS TRANSFER

ELECTRONIC FUND TRANSFERS INITIATED BY THIRD PARTIES You may authorize a third party to initiate electronic fund transfers between your account and the third party's account. These transfers to make or receive payment may be one-time occurrences or may recur as directed by you. These transfers may use the Automated Clearing House (ACH) or other payment networks. Your authorization to the third party to make these transfers can occur in a number of ways. In some cases, your authorization can occur when the merchant posts a sign informing you of their policy. In all cases, the transaction will require you to provide the third party with your account number and bank information. This information can be found on your check as well as on a deposit or withdrawal slip. Thus, you should only provide your bank and account information (whether over the phone, the Internet, or via some other method) to trusted third parties whom you have authorized to initiate these electronic fund transfers. Examples of these transfers include, but are not limited to:
  • Preauthorized credits. You may make arrangements for certain direct deposits to be accepted into your checking, savings, or money market account(s).
  • Preauthorized payments. You may make arrangements to pay certain recurring bills from your checking, statement savings, or money market account(s).
  • Electronic check conversion. You may provide your check to a merchant or service provider who will scan the check for the encoded bank and account information. The merchant or service provider will then use this information to convert the transaction into an electronic funds transfer. This may occur at the point of purchase, or when you provide your check by other means such as by mail or drop box.
  • Electronic returned check charge. Some merchants or service providers will initiate an electronic funds transfer to collect a charge in the event a check is returned for insufficient funds

    • Please also see Limitations on frequency of transfers section regarding limitations that apply to savings and money market accounts.
    24-HOUR AUTOMATED RESPONSE LINE TELEPHONE TRANSFERS - TYPES OF TRANSFERS     You may access your account by telephone 24 hours-a- day at 978-462-1050 using your personal identification number, a touch-tone phone, and your account numbers to:
  • Transfer funds to and from checking, savings and money market accounts.
  • Get the following information about checking, savings and money market accounts: 1) Account balance; 2) Last 15 deposits; 3) Last 15 withdrawals.

    • Please also see Limitations on frequency of transfers section regarding limitations that apply to telephone transfers.
    Your Option to Limit Cash Withdrawals. You have the option to limit the amount of cash that can be withdrawn by your ATM card and VisaŽ Debit Card and/or code to $50.00 per day or some other amount acceptable to us. ATM Transfers-types of transfers and dollar limitations. You may access your account(s) by ATM using your ATM card and personal identification number or VisaŽ Debit Card and personal identification number, to:
  • Make deposits to checking, savings and money market account(s) with an ATM card or debit card.
  • Get cash withdrawals from checking, savings and money market account(s) with an ATM card or debit card.
    • *You may withdraw no more than $500.00 per day.
  • Transfer funds from or get account balances for statement savings, money market, or checking account(s) with an ATM card or debit card.

    • Some of these services may not be available at all terminals.
    Please also see Limitations on frequency of transfers section regarding limitations that apply to ATM transfers.
    Types of ATM Card Point-of-Sale Transactions. You may access your checking, savings or money market account(s) to purchase goods (in person), pay for services (in person), and get cash from a merchant, if the merchant permits or from a participating financial institution.
    Types of VisaŽ Debit Card Point-of-Sale Transactions. You may access your checking account(s) to purchase goods (in person, online, or by phone), pay for services (in person, online, or by phone), get cash from a merchant, if the merchant permits, or from a participating financial institution, and do anything that a participating merchant will accept.
    Point-of-Sale Transactions-dollar limitations for ATM/Debit cards. Using your card: You may not exceed $1,500.00 ($2,000.00 combined with ATM withdrawals) in transactions per day.
    Please also see Limitations on frequency of transfers section regarding limitations that apply to debit card transactions.
    Currency Conversion. When you use your VisaŽ Debit Card at a merchant that settles in currency other than US dollars, the charge will be converted into the US dollar amount. The currency conversion rate used to determine the transaction amount in US dollars is either a wholesale market rate or the government mandated rate in effect the day before the processing date, increased by 1%. The conversion rate in effect on the processing date may differ from the rate in effect on the transaction date or posting date.
    Advisory Against Illegal Use. You agree not to use your card(s) for illegal gambling or other illegal purpose. Display of a payment card logo by, for example, an online merchant does not necessarily mean that the transactions are lawful in all jurisdictions in which the cardholder may be located.
    Internet Banking Computer Transfers-types of transfers. You may access your account(s) by computer through the Internet by logging on to our Web site at www.institutionforsavings. com and using your user identification number, your password, and your account numbers, to:
  • Transfer funds to and from checking, savings, and money market accounts
  • Get the following information about checking, savings and money market accounts: 1) Account balance 2) Last 15 deposits 3) Last 15 withdrawals

    • Please also see Limitations on frequency of transfers section regarding limitations that apply to computer transfers.
    Limitation on frequency of transfers. In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:
  • Transfers from a statement savings account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per month with no transfers by check, debit card or similar order to third parties.
  • Transfers from a money market account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per month with no more than three by check, draft, or similar order to third parties.

    • Termination
  • You may terminate the electronic fund transfer agreement by written notice to us.
  • We may terminate the electronic fund transfer agreement by written notice to you.

    • Minimum Account Balance
  • We do not require you to maintain a minimum balance in any account as a condition of using an access device (card or code) to accomplish a transfer.

    • FEES
  • We do not charge for Direct Deposits to any type of account.
  • We do not charge for preauthorized payments from any type of account.
  • Except as indicated elsewhere, we do not charge for these electronic fund transfers.

    • ATM Operator/Network FeesWhen you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a funds transfer).
    DOCUMENTATION
    Terminal Transfers. You can get a receipt at the time you make any transfer to or from your account using one of our automated teller machines or point-of-sale terminals.
    Preauthorized Credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at 978-462-3106, (24-Hour automated) 800-437-6703, or (internet) www.institutionforsavings.com to find out whether or not the deposit has been made.
    Periodic Statements. You will get a monthly account statement from us for your checking, statement savings, or money market accounts. For passbook accounts, if the only possible electronic transfers to or from your account are preauthorized credits, we do not send periodic statements. You may bring your passbook to us and we will record any electronic deposits that were made since the last time you brought in your passbook.
    PREAUTHORIZED PAYMENTS
    Right to stop payment and procedure for doing so. If you have told us in advance to make regular payments out of your account, you can stop any of these payments.
    Here is how:
  • We must receive your request at least 3 business days prior to when the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within 14 days after your call.

    • Notice of varying amounts. If these regular payments vary in amount, the person you are going to pay will tell you 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set).
    Liability for failure to stop payment of preauthorized transfer. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.
    ADDITIONAL INFORMATION REQUIRED BY MASSACHUSETTS LAW
  • Any documentation provided to you which indicates that an electronic funds transfer was made to another person shall be admissible as evidence of the transfer and shall constitute prima-facie proof that the transfer was made.
  • The initiation by you of certain electronic fund transfers from your account may effectively eliminate your ability to stop payment of the transfer.

    • Unless otherwise provided in this agreement, you (the consumer) may not stop payment of electronic funds transfers, therefore you should not employ electronic access for purchases or services unless you are satisfied that you will not need to stop payment. Financial Institution's Liability
    If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:
  • If, through no fault of ours, you do not have enough money in your account to make the transfer.
  • If you have an overdraft line and the transfer would go over the credit limit.
  • If the automated teller machine where you are making the transfer does not have enough cash.
  • If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.
  • If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.
  • If the funds are subject to legal process or other encumbrance restricting such transfer.
  • There may be other exceptions stated in our agreement with you.
    Confidentiality
    In order that your privacy may be protected, we will not disclose any information about you or your account to any person, organization, or agency except:
  • For certain routine disclosures necessary for the completion of a transfer; or
  • For verification of the existence and condition of your account for a credit bureau or merchant; or
  • To persons authorized by law in the course of their official duties; or
  • To our employees, auditors, service providers, attorneys or collection agents in the course of their duties; or
  • Pursuant to a court order or lawful subpoena; or
  • To a consumer reporting agency as defined in Chapter 90 of Massachusetts General Laws; or
  • As explained in the separate Privacy Disclosure. If an unauthorized disclosure has been made, we must inform you of the particulars of the disclosure within 3 days after we have discovered that an unauthorized disclosure has occurred.

    • UNAUTHORIZED TRANSFERS
    Consumer Liability
  • Tell us AT ONCE if you think your card and/or code has been lost, stolen or used without your permission. Telephoning is the best way, if any, of minimizing your possible losses. You can lose no more than $50 if you give us notice of your lost or stolen card and/or code and your card and/or code is used without your permission.
  • Additional Limit on Liability for VisaŽ Debit Card. Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen VisaŽ Debit Card. This additional limit on liability does not apply to ATM transactions, using your Personal Identification Number which are not processed by VisaŽ or to commercial cards.
  • Contact us in the event of unauthorized transfer. If you think your card and/or code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call or write us at the telephone number or address listed in this brochure.

    • PROTECTED CONSUMER USE
    Chapter 167B of the Massachusetts General Laws was enacted to provide a means for financial institutions, businesses, and consumers to conduct their business relations more conveniently. Transferring funds electronically will supplement the use of checks, credit and cash and will not replace these present methods of doing business. As a consumer, you should be aware of your rights if you choose to utilize this system.
    1. Prohibition of compulsory use No person may:
  • Require you to use a preauthorized electronic fund transfer as a condition of the extension of credit unless the credit is being extended in connection with an overdraft checking plan, or is being extended to maintain a specified balance in your account, or
  • Require you either to accept a transfer service or to establish an account which accessed electronically as conditions of employment or receipt of governmental benefit, or
  • Require you to pay electronically for the purchase of goods or services.
  • If your account is to be credited by a preauthorized transfer you may choose the financial institution to which the transfer may be made, if the institution is technically capable of receiving such preauthorized transfer.
    2. Waiver of rights. No writing or agreement signed by you can waive the rights conferred to you by Chapter 167B of the Massachusetts General Laws unless you decide to waive these rights in settlement of a dispute or action.
    3. Refunds. If it is the policy of a store or retail business to give cash refunds in return for an item purchased by cash, then this policy must also cover refunds for items purchased by electronic fund transfer unless it is clearly disclosed at the time the transaction is consummated that no cash or credit refunds are given for payments made by electronic fund transfers.
    4. Suspension of obligations. If a person agrees to accept payment by means for an electronic fund transfer and the system malfunctions preventing such a transfer, then the consumer's obligation is suspended until the transfer can be completed, unless that person, in writing, demands payment by other means.
    5. Prohibited means of identification. Your Social Security number cannot be used as the primary identification number although it can be used as secondary aid to identify you.
    6. Criminal liability. Procuring or using a card, code or other means of electronic access to an account with the intent to commit fraud is basis for criminal liability.
    ERROR RESOLUTION NOTICE
    In case of errors or questions about your electronic transfers: Telephone or write to us at the telephone number or address listed in this brochure as soon as you can, if you think your statement, passbook or receipt is wrong or if you need more information about a transfer listed on the statement, passbook or receipt. We must hear from you no later than 60 days after we sent you the FIRST statement on which the problem or error appeared or if the only transfer possible is a direct deposit to your passbook account, no later than 60 days after the problem or error was FIRST reflected in your passbook or statement.
  • Tell us your name and account number (if any).
  • Describe the error of the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.
  • Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writingwithin 10 business days.
    We will determine whether an error occurred within 10 calendar days (5 business days for VisaŽ Debit Card point-of- sale transactions) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 calendar days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 calendar days (5 business days for VisaŽ Debit Card point-of-sale transactions) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may inspect or ask for copies of the documents that we used in our investigation. If there is no error, we may impose on you a reasonable charge for making such reproductions.
    INSTITUTION FOR SAVINGS
    P.O. BOX 510
    NEWBURYPORT, MASSACHUSETTS 01950
    Phone: 978-462-3106
    MORE DETAILED INFORMATION IS AVAILABLE ON REQUEST