Overdraft Coverage

Overdraft Coverage Options: Overdraft Privilege & Overdraft Protection

Life happens! Mutual Credit Union understands that unexpected overdrafts occur from time to time — Overdraft Coverage can help. Consider these ways to cover overdrafts.

Service

Cost

Overdraft Protection Link to Another Deposit Account You Have at Mutual Credit Union2

$3 fee per transfer

Overdraft Protection Link to a Cash Advance on Your Mutual Credit Union Credit Card or Overdraft Protection Line of Credit1,2

Subject to fees and/or interest

Overdraft Privilege

$29 Overdraft Fee per item

Overdraft Protection Services

Overdraft protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account, cash advance, or line of credit you may have at Mutual Credit Union for a fee and/or finance charge. Please note that cash advances and overdraft lines of credit are subject to credit approval.

Overdraft Privilege

Overdraft privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a covered transaction. Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.

Transactions Covered with Overdraft Privilege

Standard Coverage 
(No action required)

Extended Coverage

(Your consent required)*

Checks

X

X

ACH - Auto Debits

X

X

Recurring Debit Card Payments

X

X

Online Bill Pay Items

X

X

Internet Banking Transfers

X

X

Telephone Banking

X

X

ATM Withdrawals

 

X*

Everyday Debit Card Purchases

 

X*

 

To enjoy Extended Coverage for future transactions, please let us know in one of the following ways:

  • Call us at 877-457-3654
  • Visit any branch
  • Complete the consent form and mail it to us at P.O. Box 25, Vicksburg, MS 39181
  • Email us at membersvc@mutualcu.org

You can discontinue the Overdraft Privilege in its entirety by contacting us at (877) 457-3654 or sending us an e-mail at membersvc@mutualcu.org.

What Else Should You Know?

A link to another account or a line of credit is a less expensive option than utilizing Overdraft Privilege. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, Internet banking, and telephone banking services to keep track of your balance.

The $29 Fee Overdraft Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Non-Sufficient Funds (NSF) Return Fee of $29. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.

We post items in the following order: 1) credits, 2) ATM and debit card transactions (in the order received), 3) ACH debits (in the order received), 4) checks (highest to lowest dollar amount). Holds on funds (described below) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Fees assessed.

Under payment system rules, Mutual Credit Union may be obligated to pay some unauthorized debit card transactions, Mutual Credit Union will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).

Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.

Except as described in this letter, Mutual Credit Union will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s). 

We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege limit. If you use your debit card for recurring payments, e.g., utilities, and your debit card is ever suspended, these transactions will be returned to the payee(s). You will need to make other arrangements to make these payments to the payee(s).

Mutual Credit Union 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 Fee may be assessed. 

Please be aware that the Overdraft Privilege amount is not included in your balance provided through online banking, mobile banking or Mutual Credit Union’s ATMs.

Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within thirty-five (35) days for a minimum of one business day.

Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (877) 457-3654 or visit a branch.

1Contact us at 877-457-3654 or membersvc@mutualcu.org, or come by a branch to sign up or apply for these services.

2Subject to credit approval.

*If you choose Extended Overdraft Privilege Coverage, ATM withdrawals and everyday debit card transactions will be included with the Standard Coverage transactions listed above.