New Federal Reserve rules give debit and ATM card users additional
options regarding overdrafts. We are now offering you the ability to
make decisions about overdrafts for transactions made with your
debit/ATM card.
We've created a notice explaining how we treat overdrafts and are giving you
the option to let us know if you would like us to honor overdrafts
caused by debit card purchases or ATM transactions.
Click here to view the notice and
to let us know if you want us to honor these types of overdraft
transactions.
Here are some key things you need to consider when reading the notice:
The basic facts
An overdraft occurs when you write a check, complete an ATM
transaction, use your debit card to make a purchase, or set-up an
automatic bill payment or other electronic payment for an amount
greater than the balance in your checking account, and we honor the
transaction. For a fee, we cover you when you become
overdrawn. This fee applies to each item that overdraws your
account. The same fee applies whether we honor the
transaction or return it. A fee is not charged for denied ATM
transactions or debit card purchases.
Generally, we cover your overdrafts in one of two different ways:
Standard overdraft
practices. Our standard practice is called Courtesy
Pay. If you qualify for this automatic service, we cover your
transactions, saving you the costs and embarrassment of unintentional
errors and denied transactions. You avoid costly merchant fees for
returned payments. And, you protect your reputation. You
don't pay for our standard overdraft practice (Courtesy Pay) until you
use it. If we cover a payment, you pay a $28 fee for each transaction
paid by the credit union. The same fee is charged if a payment is
returned.
Overdraft
protection plans. We also offer a line of credit or a link
to your savings account to cover transactions when you overdraw your
account. These overdraft protection plans may be less expensive than
our standard overdraft practices. Call or stop-by to apply
for an overdraft line of credit or to link your savings account to your
checking account.
The new rules
You choose.
In the past, if you qualified, you were automatically enrolled in our
standard overdraft practices (Courtesy Pay) for all types of
transactions when you opened an account. Under the new rules, we must
first get your permission to apply our standard overdraft practices to
everyday debit card and ATM transactions. To grant this permission, you
will need to respond to
the notice and opt in (agree).
Existing
accounts. If you do not opt in (agree), beginning August
15, 2010, our standard overdraft practices (Courtesy Pay) won't apply
to your everyday debit card and ATM transactions. These transactions
typically will be declined when you don't have enough money in your
account, but you will not be charged overdraft fees. If you
do not want this transaction to be declined, you will need to respond
to
the notice and opt in (agree).
New accounts.
If you open a new account on or after July 1, 2010, we will not honor
everyday debit card and ATM transactions unless you let us know (
opt in).
Flexibility.
Whatever your decision, the new overdraft rules give you flexibility.
If you opt in, you can cancel at any time. If you do not opt in, you
can do so later.
Checks and
automatic bill payments. The new rules do not cover checks
or automatic bill payments that you may have set up for paying bills
such as your mortgage, rent, or utilities. If you qualify, we will
still automatically enroll you in Courtesy Pay for these types of
transactions.
What You Need to Know
about Overdrafts and Overdraft Fees. Click here to let us know if you
would like us to honor overdrafts caused by debit card purchases or ATM
transactions and to view the related notice.
Opt in today. Just call, come in
or complete our online
"Authorization to Pay Overdrafts on My ATM
and Everyday Debit Card Transactions."
Useful Terms...
Everyday debit
card transactions
Purchases made with your debit card on a day-to-day basis (excludes all
checks and automatic bill payments)
Overdraft
An overdraft occurs when you write a check, make an ATM transaction,
use your debit card to make a purchase, or make an automatic bill
payment or other electronic payment for an amount greater than the
balance in your checking account and it is honored
opt in
Giving your credit union permission to include you in a particular service
opt out
Declining a particular service offered by your credit union
