Overdraft Services

What is an Overdraft?

An overdraft occurs when an account lacks the funds to cover a transaction, but the financial institution allows the transaction to go through anyway.

Overdraft Options

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.

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Overdraft Protection Transfer

• + What is Overdraft Protection Transfer?

  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.

• + Is there a fee for this service?

  No. There is no fee for this service.

• + How do I enroll in this service?

  You can enroll through online banking, by phone, or by visiting a local branch.

• + How many accounts can I link for Overdraft Protection Transfer?

  You can designate up to 3 accounts you would like for overdraft protection transfer.

• + How can I designate the accounts?

  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.

• + What is the difference between Overdraft Protection Transfer and Courtesy Pay?

  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.

• + In what order are transactions processed?

  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.

• + In what order are fees applied if you are opted in to Overdraft Protection Transfer and Courtesy Pay?

  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.

• + What is the difference between actual and available balance?

  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.

Line of Credit (LOC)

• + What is Line of Credit?

  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.

• + What is the interest rate for a Line of Credit loan?

  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.

• + How do I get a Line of Credit?

  You will need to complete an application online, over the phone, or at your local branch.

• + How do I access my Line of Credit?

  You can access it through Online Banking and Mobile app, by phone, or by visiting your local branch.

Courtesy Pay

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.

• + What is Courtesy Pay?

  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.

• + What is my Courtesy Pay limit?

  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.

  • Free and Teen Checking - $400 Courtesy Pay limit
  • Plus - $1,000 Courtesy Pay limit
  • Business Checking - $1,500 Courtesy Pay limit
• + What is the difference between Overdraft Protection Transfer and Courtesy Pay?

  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.

• + In what order are transactions processed?

  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.

• + In what order are fees applied if you opt in to Overdraft Protection Transfer and Courtesy Pay?

  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.

• + What is the difference between actual and available balance?

  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.

• + What types of transactions are covered by or qualify for Courtesy Pay?

  Courtesy Pay is automatically activated after your checking account is opened for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

  We do not authorize and pay overdrafts utilizing Courtesy Pay for debit card signature-based transactions unless you opt-in for this service.

• + Why does UFCU provide the additional service requiring opt-in for debit card signature-based transactions for Courtesy Pay?

  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.

• + What are the benefits of opting in to Courtesy Pay for everyday debit card signature transactions?

  There are many reasons why you might want to opt-in to Courtesy Pay for everyday debit card signature transactions, including:

  • Increased Convenience. Your purchase may be approved when you have insufficient funds in your checking account, rather than denied.
  • Added Peace of Mind. In difficult times, your transaction may be approved when you need money to pay for unexpected expenses. You will only be charged when the service is used and there is no fee for opting in.
• + If I opt in to Courtesy for everyday debit card signature transactions, will my items always be paid?

  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).

• + How do I opt in to Courtesy Pay for everyday debit card signature transactions?

  Complete and submit the Debit Card Courtesy Pay Opt-In Form via Online Banking.

  1. Log in to Online Banking.
  2. Select My Accounts » Select your Checking Account.
  3. Click Account Details and scroll down to Overdraft Courtesy Pay. If you would like to add please click add.

  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.

• + Is there a fee for Courtesy Pay?

  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

  1. Enroll in Online Banking and Download the Mobile app
     Be in the know and get your balance and transaction information. This gives you a better idea of what you have available to spend.
  2. Set up Automatic Transfer into Savings
     Work to build a cushion in your savings account by having automatic, reoccurring transfers from your checking when you get paid.
  3. Add Direct Deposit
     When you enroll in Direct Deposit you can get paid up to 2 days earlier. This helps you access your funds sooner and can save you a trip to the branch to deposit your paycheck.