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An overdraft occurs when an account lacks the funds to cover a transaction, but the financial institution allows the transaction to go through anyway.
We offer a few different options to help you manage your account when these situations arise. Some Overdraft Services are free of charge, and some carry a fee. We do not charge a fee when a transaction is declined due to non-sufficient funds.
Overdraft Protection Transfer
Transfers available funds from your linked accounts to cover transactions that exceed the available balance in your checking account.
Benefits
Line of Credit (LOC)
Transfers funds from a line of credit to cover transactions that exceed the available balance in your checking account.
Courtesy Pay
As a courtesy, in the event funds are not available in your account, we will pay the transaction for you.
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Overdraft Protection Transfer serves as a safeguard for your account should you exceed your balance through a check or debit card purchase. Think of it as a free purchase protection service. If you exceed your balance, Overdraft Protection will cover the additional amount by automatically transferring funds from a linked account(s). You have the flexibility to choose where you want funds to come from — whether it’s your savings account, Money Market, Line of Credit, or another UFCU checking account. When selecting multiple accounts, you can specify the order from which you’d like us to pull funds.
No. There is no fee for this service.
You can enroll through online banking, by phone, or by visiting a local branch.
You can designate up to 3 accounts you would like for overdraft protection transfer.
You can designate through new Online Banking only for savings and Money Market. You will need to call or visit a branch to designate another UFCU checking account. The owner(s) of the checking account must also be the same as the owner(s) of the linked savings account.
Overdraft Protection Transfer and Courtesy Pay are two separate Overdraft Services offered by UFCU.
Overdraft Protection Transfer allows funds to be transferred from a previously linked UFCU account, such as savings, Money Market, checking account, or Line of Credit, to pay an item. Overdraft Protection Transfer will not allow the account to overdraft or (go into a negative balance) to pay an item. To designate which account(s) you’d like to enroll in Overdraft Protection Transfer, log into Online Banking or contact Member Services.
Courtesy Pay is a service that pays items that might otherwise be returned due to insufficient funds in your account, or when Overdraft Protection Transfer is unable to cover the transaction. If you have set up an Overdraft Protection Transfer source, we will try using this method before paying your overdraft utilizing Courtesy Pay.
Transactions are posted in the order they are received. Processing methods vary dependent upon the way the transaction is received, i.e. ACH and Bill Pay have different processing times. Please contact UFCU for more information.
If you do not have enough funds in your checking, and you have linked shares for Overdraft Transfer Protection, UFCU will pull the money from your linked shares to cover that transaction at no charge to you. If the linked shares do not have sufficient funds to cover the transaction, and you have opted for Courtesy Pay on your account, then UFCU may pay the difference and charge a fee for each new transaction that brings the checking more negative. UFCU does not charge a fee if you overdraw your account less than $5.
Your available balance reflects any preauthorization holds or deposit holds and is used to determine available funds when future transactions attempt to clear the account.
The balance we use internally as transactions clear is called your actual balance or total balance and includes all items that have cleared the account up to that point. This actual balance does not include outstanding debit purchases, share drafts (checks), or automatic drafts. If funds are not sufficient in the actual balance at the time of clearing, an overdraft fee is charged for each transaction that attempts to clear..
Your actual balance includes items that have not yet cleared your account such as checks written and not cashed and debit-card pre-authorization holds.
Applying for a LOC loan provides extra cushion for emergencies and protects your account from overdraft fees and denied transactions. You pay interest only on the amount borrowed and funds will be replenished as you make payments. It’s an effective way to protect yourself from making transactions when funds are unavailable. Line of credit protection starts at $500.
The exact interest rate is determined when you apply and is based on your creditworthiness. Keep in mind you only pay interest on the amount you have used and the funds will be replenished as you make payments.
You will need to complete an application online, over the phone, or at your local branch.
You can access it through Online Banking and Mobile app, by phone, or by visiting your local branch.
In cases where funds are unavailable in your account, we offer Courtesy Pay to cover your transactions for you. This service safeguards against unexpected emergencies and can help prevent fees from merchants, avoid service interruptions, and spare you from the inconvenience of declined transactions. For checking accounts eligible for Courtesy Pay, this benefit automatically extends to checks, ACH, and recurring transactions. To include debit card transactions under Courtesy Pay, you will need to opt in. This can be done through our new Online Banking, over the phone, or at any branch.
Courtesy Pay is an Overdraft Service we offer to pay items when your checking account balance does not have sufficient funds. Instead of returning the transaction to the merchant for non-sufficient funds (NSF), we may pay it and overdraw your account. Courtesy Pay safeguards against unexpected life emergencies and may help you in avoiding fees from merchants, service interruptions, and the inconvenience of declined transactions.
A Courtesy Pay limit is the amount your account may go negative. You receive a $100 Courtesy Pay limit when your account is opened. After 90 days, your Courtesy Pay limit will increase based on the type of checking account you have.
The balance we use internally as transactions clear is called your actual balance or total balance and includes all items that have cleared the account up to that point. This actual balance does not include outstanding debit purchases, share drafts (checks), or automatic drafts. If funds are not sufficient in the actual balance at the time of clearing, an overdraft fee is charged for each transaction that attempts to clear.
Courtesy Pay is automatically activated after your checking account is opened for the following types of transactions:
We do not authorize and pay overdrafts utilizing Courtesy Pay for debit card signature-based transactions unless you opt-in for this service.
We understand you may need to make a transaction that exceeds your balance in your checking account due to unforeseen circumstances or an emergency. While some financial institutions have decided to not allow anyone to opt-in to Courtesy Pay for debit card signature-based transactions, UFCU firmly believes in giving our Members a choice.
There are many reasons why you might want to opt-in to Courtesy Pay for everyday debit card signature transactions, including:
Items may be paid; however, misuse of this service will result in termination of those services. This means we do not guarantee we will always authorize and pay any type of transaction when there is not enough money available in your checking or designated overdraft protection accounts to cover the item.
Currently, UFCU offers Courtesy Pay for debit card signature-based transactions performed without using your PIN (Personal Identification Number).
Complete and submit the Debit Card Courtesy Pay Opt-In Form via Online Banking.
If you are not enrolled in Online Banking, you may contact us or complete this form and drop it off at any of our branch or mail it to: UFCU, Attn: Payment Services, PO Box 9350, Austin, TX 78766-9350.
We offer a grace for an overdraft under $5. For overdrafts $5 or more, there is a per item fee for each item paid through this service. (see Fee Schedule).
Tips to Help Prevent Courtesy Pay Fees
You have 45 days to repay the transaction amount(s) plus fee(s) incurred.
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