Overdraft Protection allows funds to be transferred from a previously designated account to pay an item. Overdraft Protection will NOT allow the account to overdraw (go into a negative balance) to pay an item.
Have you ever forgotten to record a check or debit card entry in your check register? Forgot to make that deposit or waited too late? The Credit Union encourages you to manage finances responsibly. We want to save you the embarrassment of having an item returned due to insufficient funds. For those times when you are left with too little cash in your checking account or have made an error in your checkbook, the Credit Union is now offering “Courtesy Pay”. This service allows the Credit Union to automatically post items to your share draft/checking account even when there are insufficient funds in the account to cover the item.
There is the expense and humiliation of added merchant fees or possible damage to your credit history that might result if an item is returned NSF. So, Courtesy Pay is a solution for the simple oversights that sometimes occur in your busy lifestyle.
What Is Courtesy Pay?
As long as you maintain your account “in good standing,” defined as making regular deposits and bringing your account to a positive balance at least once every 30 days, we may honor overdrafts up to your Courtesy Pay limit on your account. As in the past, we will notify you by mail when an overdraft occurs.
How Does It work?
If funds are not available in your account to pay an item, we will attempt to clear the item by using overdraft protection before Courtesy Pay is utilized. In any event, funds are taken from Courtesy Pay last. If Courtesy Pay covers the overdraft, your account will reflect a negative balance.
What Is the Difference Between Overdraft Protection and Courtesy Pay?
Overdraft Protection allows funds to be transferred from a previously designated account to pay an item. Overdraft Protection will NOT allow the account to overdraw (go into a negative balance) to pay an item. Courtesy Pay is a non-contractual courtesy offered at the sole discretion of the credit union to members who maintain their Share Draft accounts in good standing. Any Courtesy Pay amount covered is NOT considered an account holder loan and is not subject to interest being charged; however, each overdraft item paid is subject to a Courtesy Pay fee. Overdraft Protection and Courtesy Pay are two completely separate services offered by Timberline Federal Credit Union.
Who Is Eligible?
- Be at least 18 years of age;
- Have no accounts with a current or prior derogatory history;
- Have a share draft/checking account with a positive balance;
- Be no more than 30 days past due on any credit union loan;
- Have a share draft/checking account opened for at least 3 months; and
- Have made a minimum of $100 in total deposits in the previous month into your share draft/checking account.
What Is My Courtesy Pay Limit?
All Members who qualify will be granted a Courtesy Pay overdraft limit up to $500.
What Transactions Are Covered by Courtesy Pay?
Courtesy Pay covers checks, electronic ACH debits, Visa Debit Card transactions, ATM withdrawals and Bill Payments.
What Does Courtesy Pay Cost?
There is no cost associated with Courtesy Pay unless you use it. You will be charged $30 for each item paid when Courtesy Pay protection is accessed.
Is My Courtesy Pay Limit Shown in My Available Balance?
No, the Courtesy Pay amount is not added to your available balance. It is not a line of credit. Rather, it's used only to prevent the occasional, unintentional overdraft.
How Quickly Must I Repay My Courtesy Pay?
All negative balance amounts must be immediately paid to the Credit Union upon demand. If you fail to pay any negative balance amounts upon demand, the Credit Union may immediately terminate Courtesy Pay service and/or close your account without notice to you. You will be liable for any negative balance amounts until all amounts owed are paid in full.
What If I Do Not Want Courtesy Pay?
We can change your account status so that no overdrawn items are paid using Courtesy Pay. If you opt out of Courtesy Pay, any future overdrawn items presented for payment against your account will be returned unpaid and a $25 NSF be will be assessed after funds for overdraft protection (if applicable) have been depleted. You may also be charged additional fees by the merchant/payee. Carefully consider your decision to opt in or out of this program.
To Opt In
If you do not want Courtesy Pay service, please contact us by phone at (870)-304-3200 or write to Timberline Federal Credit Union, 1101 Main Street, Crossett, Arkansas 71635. Until you notify us that you want Courtesy Pay service, Courtesy Pay will be deactivated on your account.