FAQ - Courtesy Pay
What is overdraft protection? Is it automatically set up when I open a checking account?
Overdraft protection allows you to designate certain credit union accounts to be used as an overdraft source in case your checking account becomes overdrawn. We will automatically transfer funds from the designated overdraft account(s) to help prevent checks from bouncing. This is a free service.
Overdraft protection is normally established when you open a checking account. We will apply overdraft protection from your designated account(s) before we apply our Courtesy Pay service. If you are unsure if overdraft protection is set up on your checking account, or if you would like to set up a new overdraft protection source, please call a member service representative at (888) 858-6878.
What is courtesy pay protection? What types of transactions does it cover?
There are two types of Courtesy Pay protection. One type allows you to overdraw your account by check or electronic payments (ACH) and bill pay transactions and is automatically set up when you open your checking account. The other type allows you to overdraw your account by ATM or debit card transactions. Due to government regulation, you must opt-in to receive this additional coverage on your account. You can opt-in online in two clicks.
If your account is in good standing, Courtesy Pay allows you to overdraw your account, up to your Courtesy Pay limit, to clear checks, bill payments, ATM or debit card transactions when there are not sufficient funds available in your checking account. The Courtesy Pay fee is per item when you overdraw your account. In the event of an ATM or debit card transaction, we will not decline your transaction at the point of sale. In the event of check, electronic payment (ACH) or bill payment, we will not return the item to the merchant, so you avoid being assessed a returned item fee. Repayment is required within 30 days. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you are delinquent or in default in any other respect on any loan or other obligation. If the account remains negative for more than 30 days, we may suspend your account and initiate steps to recover the funds.
If you have designated overdraft protection account(s), we will attempt to transfer funds from the designated account(s) before we apply the Courtesy Pay service.
What is the difference between overdraft protection and courtesy pay?
Both overdraft protection and Courtesy Pay are designed to prevent checking account transactions from being rejected due to non-sufficient funds (NSF). This saves you the embarrassment and associated returned item fees from the merchant or biller. Overdraft protection allows funds to be transferred from a designated credit union account to pay otherwise rejected items. This is a free service.
Courtesy Pay allows your account to go negative in order to pay otherwise rejected items. There is a fee for this service, but we do not return the item to the merchant or biller or reject your point-of-sale purchase with the merchant.
- What are your courtesy pay and non-sufficient funds fees?
What is my courtesy pay limit?
Our Free, Relationship and Plu$ checking accounts can be overdrawn due to courtesy pay up to $1,500. If you have a FirstStep Checking account and are at least 18 years old, we will allow the account to be overdrawn up to $500 due to courtesy pay.
How do I know when I overdraw my account?
Depending on your communication preference selected in BranchLine online banking, you will receive an overdraft notice by either email or mail each time items are overdrawn and/or paid by Courtesy Pay. The notice will show the check number or merchant name, transaction amount, and the Courtesy Pay fee. You will need to subtract the amount of the fee from your check register. The fee will also appear in BranchLine, under Account Activity in the View Accounts tab and on your statement.
What if I go beyond my courtesy pay limit?
Overdrafts beyond your Courtesy Pay limit will be assessed a per-item, non-sufficient funds (NSF) fee. The item will be returned, unpaid, to the payee. Depending on your communication preference selected in BranchLine online banking, you will receive a returned item notice by either email or mail each time your checking account is overdrawn by NSF. The notice will show the check number or merchant name, transaction amount, and the NSF fee. You will need to subtract the amount of the fee from your check register. The fee will also appear in BranchLine, under Account Activity in the View Accounts tab and on your statement.
Can I opt-out of courtesy pay?
Yes. To opt out of courtesy pay, please complete and return a Courtesy Pay Agreement form.
Pacific Service Credit Union
P.O. Box 8191
Walnut Creek, CA 94596
Attn: Phone Center
If you decide you no longer want us to authorize and pay overdrafts on your ATM and debit card transactions, you may revoke this option in BranchLine online banking, by calling (888) 858-6878, by making a request at any Pacific Service CU branch, or by mailing a written request to: Pacific Service CU, Electronic Services, P.O. Box 8191, Walnut Creek, CA 94596.