Courtesy Pay FAQ
COURTESY PAY
Frequently Asked Questions
Q. What is courtesy Pay? A. Courtesy Pay is a program that allows you to enter into a non-contractual overdraft situation by bringing your account balance in the negative to pay a check or other presented item.
Q. How does the program work? A. If an item is presented for payment and there are insufficient funds in the account or in any overdraft account, the Credit Union may pay the item and charge a fee even if it causes the account balance to become negative. You will be notified by mail of the action. You then make a deposit to bring the negative balance to a positive balance. The negative balance account must be brought back to zero within 30 days.
Q. I have an Overdraft Line of Credit so why do I need Courtesy Pay? A. The Credit Union will look to your Overdraft Line of Credit first, but if there are no funds available, Courtesy Pay may then be utilized.
Q. How much does this cost? A. The cost for each item paid under the Courtesy Pay program is 50% of the transaction up to a maximum of $28.00.
Q. What are the benefits of Courtesy Pay? A. You will enjoy the freedom of knowing a mistake in balancing your checkbook won’t cause items to be returned. Additional benefits include avoiding the embarrassment of a returned item and the confidence of doing business with your Credit Union. Avoid costly late fees with merchants.
Q. What types of transactions are covered? A. Checks and electronic debits (debit card and ACH) may be covered by Courtesy Pay.
Q. What if I have more than one checking account? A. Each account may be covered by Courtesy Pay.
Q. What if I don’t want to participate in the program? A. All you have to do is call us, write to us, or send an e-mail indicating that you do not wish to be covered by Courtesy Pay. Understand that any items presented for payment will be returned to the payee in the event of insufficient funds if you “opt out” of the program.
Q. What less costly overdraft options do I have? A. Our first recommendation is to keep enough money in your savings account, or other account designated as an overdraft account. Funds will automatically transfer from this account, including a$5.00 fee, to your checking to cover an item. Our second recommendation is to apply for an Overdraft Line of Credit. There is no fee for transfers from this Line, however, it is a loan and interest accrues for each day there is an outstanding balance. Please refer to the Membership and Account Agreement that you received when You opened your account for additional disclosures regarding Overdrafts. If you do not have the Agreement, please contact us and we will be happy to send you one.
