Overdraft Coverage (Courtesy Pay)

Courtesy Pay Options: Privilege & Protection

Life happens. We understand that unexpected overdrafts occur from time to time — Courtesy Pay can help. Consider these ways to cover overdrafts. 

Courtesy Pay Protection Services

Courtesy Pay 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.

Courtesy Pay Privilege

Courtesy Pay Privilege is just that; a privilege Mutual Credit Union extends to members who consistently keep their accounts in good standing. The courtesy pay program allows for the service to be personalized to meet each checking account holder's needs. Instead of a fixed overdraft limit, overdraft limits may change daily. Factors that influence the daily limit amount include: age of the account, amount of deposits, and the frequency of deposits. Even if you have courtesy pay protection, courtesy pay privilege is still available as secondary coverage if the other protection source is exhausted. 

I want to change my courtesy pay (overdraft) options on my account.

You can discontinue the Courtesy Pay (Overdraft) Privilege in its entirety by contacting us at (877) 457-3654 or sending us an e-mail at [email protected].

What Else Should You Know?

A link to another account or a line of credit is a less expensive option than utilizing Courtesy Pay (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 Courtesy Pay (Overdraft) Privilege limit amount. Your account may become overdrawn in excess of the Courtesy Pay (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.

Note: Please be aware that holds placed on your account for pending electronic transactions, such as hotel or rental car deposits, reduce your available balance and may cause your account to become overdrawn.

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 Courtesy Pay Protection or Courtesy Pay Privilege, please call us at (877) 457-3654 or visit any branch.

 I want to change my courtesy pay (overdraft) options on my account.

¹Contact us at 877-457-3654 or [email protected], 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.