Overdraft Protection and Courtesy Pay
- If you have set up Overdraft Protection automatic transfers on your account, which may be less expensive than our standard overdraft practices, the system will always default to using the Overdraft Protection transfers first.
- Overdraft Protection Transfers are subject to a small Overdraft Transfer Fee.
- Overdraft Protection Transfers, when sufficient funds are available in your linked account, may help prevent a check, ACH, or automatic Bill Payment from being returned. It can also prevent your debit card purchase or ATM transaction from being declined. The system will pull funds from your linked account to cover the check, payment, debit card purchase, or ATM withdrawal.
- Contact 1st CCU at 888-706-1228 if you would like information on how you can set up or revise Overdraft Protection transfers.
Example 1: You have set up Overdraft Protection Transfers on your checking account, designating your savings account as your first overdraft transfer source. A $50 check is trying to clear and you have an available balance of $10 in checking, but you have $100 available in your savings. $42 would be transferred ($40 to cover the remaining amount and $2 for the transfer fee) into your checking from your savings, leaving your checking account balance at $0.
Example 2: In the above example, let's say that you are using your debit card rather than a check to make a $50 purchase. Rather than declining your card, 1st CCU's system will transfer $42 from your savings into your checking to cover the debit card purchase and the $2 transfer fee, leaving you with a checking balance of $0. In this scenario you would avoid the embarrassment of having your debit card declined at the checkout.
Standard Courtesy Pay/Overdraft Practices
- Checks and other transactions made using your checking account number
- Automatic bill payments
- ACH (Automated Clearing House) transactions
- ATM Transactions
- One-time debit card transactions
When your account has an insufficient available balance to cover a transaction and you do NOT have Overdraft Protection Transfers linked to another account (or your overdraft protection accounts have insufficient funds to cover your transaction), then 1st CCU's Standard Courtesy Pay/Overdraft Practices may cover the transaction and allow your account to go negative (up to a certain dollar limit defined by the credit union).
When Courtesy Pay covers a transaction and allows your account to go negative, a Courtesy Pay Fee is charged directly to the account for each overdraft. The account holder has two weeks to cover the overdraft and the Courtesy Pay Fee and bring the account back to positive.
Example 3: In the example shown above, if your checking account has an available balance of $10 and you haven't linked your accounts for Overdraft Protection Transfers (OR, if you don't have sufficient available funds in your savings to cover the check), then the system will look to see if you qualify for Courtesy Pay. If you qualify for Courtesy Pay then the $50 check would be covered by 1st CCU, leaving you with a balance of -$40 in your checking account. In addition, you would be charged a $20 Courtesy Pay Fee, bringing your checking account balance to -$60. You would then have up to two weeks to bring your checking account balance back to positive.
In comparison, this is a much less costly option than the check being returned. The store would have charged you a fee of $20-$40 for writing a bad check in addition to the NSF Fee charged by 1st CCU.
Please note that NSF fees and Courtesy Pay fees are charged per item/transaction that overdrafts the account. If several overdrafts occur in a day you will be charged the NSF fee for each of them.
What if I want 1st Community Credit Union's Courtesy Pay service to also authorize and pay overdrafts on my ATM and one-time debit card transactions (if I don't have Overdraft Transfers set up or I don't have sufficient funds in my Overdraft-linked account)?
To submit in Online Banking:
- Log into your Online Banking account at 1stccu.com
- Click the Services tab and click the 'continue' button next to Reg E Opt-In/Opt-Out
- Read the terms and conditions
- Select the shares to Opt-In for the service, then click Submit
If you prefer to submit the paper form:
- Click Here for the Opt-In Form
- After completing the form, email to 1st CCU or submit it to a 1st CCU location in Sparta, West Salem or Tomah
- For security purposes if you are emailing the form you must use the ZIX secure portal. Please select the Bookkeeping Department from the drop down options within the ZIX secure email platform.