Our bank offers an overdraft line of credit. We also have a bounce protection program for our other customers who qualify. The bounce protection amount is available for debit purchases or ATM withdrawals (although it is not included in the balance) while the overdraft line is not accessible by ATM or debit card.

Does anyone know of any issues we would face if we were to allow our customers access to the overdraft line for debit purchases or ATM withdrawals? Is anyone already doing this? Any input would be appreciated!

Sounds a little bass ackwards to me - I know of no other bank that is set up in that manner. Why offer a line of credit product if it is not going to be able to accessed???

our bank actually lets you access the funds for pos purchases but not for ATM transactions.

FWIW, I agree with you. The customers who have the OD line have already been through the credit approval process and should have the ability to access that line at the ATM or with a debit purchase more so than those on bounce protection. I just wanted to make sure that we weren't overlooking anything. Thanks.