WHAT YOU NEED TO KNOW ABOUT OVERDRAFTS AND OVERDRAFT FEES
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:
1. We have standard overdraft practices that come with your account.
2. We also offer overdraft protection plans, such as a link to your primary share account, which may be less costly than our standard overdraft practices. To learn more, ask us about these plans.
This notice explains our standard overdraft practices.
> What are the standard overdraft practices that come with my account
We do authorize and pay overdrafts for the following types of transactions:
Checks and other transactions made using your checking account number
Automatic bill payments
We will not authorize and pay overdrafts for the following types of transactions without your consent.
ATM transactions
Everyday debit card transactions
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.
> What fees will I be charged if UFCW Community Federal Credit Union pays my overdraft?
Under our standard overdraft practices:
We will charge you a fee of up to $35 each time we pay an overdraft if your account is overdrawn more than $10
There is no limit per day on the total fees we can charge you for overdrawing your account
> What if I want UFCW Community Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call us at (570) 693-0500, send us a secure message through online banking, complete the form below and present it at a branch or mail it to: PO Box 4258, Wyoming, PA 18644. You can revoke your authorization for UFCW Community Federal Credit Union to pay these overdrafts at any time by any of the above methods. Your revocation must include both your name and the last 4 digits of your account number so that we can properly identify your account.
WHAT ELSE YOU SHOULD KNOW
A link to another account may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our home banking and speedy access services to track your balance. For financial education resources, please visit www.mymoney.gov.
The $35 Overdraft Privilege/Courtesy Pay Fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Privilege/Courtesy Pay Fee or a Non-Sufficient Funds (NSF) Fee of $35. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
For consumer accounts, there is no limit on the total Overdraft Privilege/Courtesy Pay Fees per day we will charge you for overdrawing your account. We will not charge an Overdraft Privilege/Courtesy Pay Fee if a consumer account is overdrawn by $10 or less.
Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft Privilege/Courtesy Pay Fee from funds that you deposit or that are deposited into your account may call us at (570) 693-0500 to discontinue Overdraft Privilege.
If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, UFCW Community Federal Credit Union (“We”) may charge a Non-Sufficient Funds (NSF) Fee each time we return the item because it exceeds the Available Balance in your account. Because we may charge a Non-Sufficient Funds (NSF) Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. When we charge a Non-Sufficient Funds (NSF) Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on re-presentment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an Overdraft Privilege/Courtesy Pay Fee. We may use the terms “item” and “transaction” interchangeably.
This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post ACH credits before debits. ATM, ACH and debit card transactions are posted in the order in which the items are received, while paper checks are posted from lowest to highest by dollar amount; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Privilege/Courtesy Pay Fees or Non-Sufficient Funds (NSF) Fees assessed.
Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Membership and Account Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.
We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Privilege/Courtesy Pay Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Privilege/Courtesy Pay Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
Understanding Overdraft Privilege Limits
An Overdraft Privilege limit of $300 will be granted to eligible consumer and business checking accounts opened at least 60 days with $300 in aggregate deposits. Consumer accounts must also establish a minimum direct deposit of $100 every 35 days to maintain eligibility for Overdraft Privilege.
Overdraft Privilege may be suspended if you default on any loan or other obligation to us or your account becomes subject to any legal or administrative order or levy, or we are unable to contact you due to an invalid address on file.
If you fail to meet the direct deposit requirement of $100 per 35-day period or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day, your Overdraft Privilege limit will be reduced to $50 until the direct deposit requirement is met again or until you bring your account balance positive for at least one business day to have the Overdraft Privilege limit reinstated.
Understanding your Available Balance: Your account has two kinds of balances: the Actual Balance and the Available Balance.
We authorize and pay transactions using the Available Balance.
Your Actual Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Actual Balance, less any holds due to pending debit card transactions and holds on deposited funds.
The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Protection.
The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Privilege limit.
The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Privilege limit.
Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Membership and Account Agreement, which will reduce the amount in your Available Balance.
Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through online banking, or UFCW Community Federal Credit Union’s ATMs.
We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, an Overdraft Privilege/Courtesy Pay Fee may be assessed.
Except as described herein, we will not pay items if the Available Balance in your account
If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (570) 693-0500 or visit a branch.