We understand that even the best laid plans can be turned upside down when life unexpectedly happens. Hopefully, you don't have to worry about your checking account having a negative balance, but when an emergency arises, you don't want to worry about being declined.
What Is It?
An overdraft occurs when the available balance (account balance less any pending transactions or holds) in your account is not sufficient to cover a transaction.
Overdraft Protection is a valuable addition to any checking account. Setting up a draw account links your checking account to one of your other accounts (savings or line of credit, for example). Draw accounts protect you from declined transactions and from a negative balance by pulling needed funds from your other account. Plus, linking accounts is a less expensive option than an overdraft.
Overdraft Privilege is an automatic protection on checks or ACH transactions. For debit/ATM card use, you can opt in and ask us to pay your transactions, even if they cause you to go negative in your account, to prevent transactions from being declined on the spot. If you do not choose to opt in, and don't have any draw accounts set up to cover the charge, the card transaction will be declined.
Pick the protection that works best for you and your accounts.
|Ready Money or HELOC||Subject to interest|
|Another deposit account||$5 per transfer*|
|ATM/Debit card||$10 per overdraft occurrence (each presentment resulting in an overdraft)*|
|Check/ACH||$10 per overdraft occurrence (each presentment resulting in an overdraft)*|
Managing your overdraft protection is simple:
- Opt in or opt out of extended coverage on ATM/debit card transactions. It's easy!
- Email us at email@example.com
- Contact us
- Visit any of our branches
What Else You Should Know
- We post items in the following order: 1) ACH credits, 2) internal transfers and loan payments, 3) checks (in the order received), 4) ACH debits (in the order received), 5) ATM and debit card transactions (in the order received, may post throughout the day). However, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of overdraft fees assessed.
- Verity Credit Union’s determination of an insufficient account balance is made at the time the check or item is presented to us, which may be later than the time you conduct the transaction. Checks and card transactions on your account are paid based on your available balance, and not the actual balance. Your “actual balance” is the amount of money that is actually in your account at any given time. Your actual balance reflects transactions that have posted to your account, but it does not include transactions that have been authorized and are pending. While it may seem that the actual balance is the most up-to date display of the funds that you can spend from your account, this is not always the case. Your account may have purchases, holds, fees, other checks, charges or deposits made on your account that have not yet posted and therefore, will not appear in your actual balance. Your “available balance” is the amount of funds in the account that are available to pay checks, ACHs, and other items presented against the account without incurring an overdraft fee or transferring funds from another account. The available balance is generally equal to the actual balance, less the amount of any holds placed on recent deposits, holds placed for other reasons, and holds for pending transactions (such as debit card purchases) that we have authorized but that have not yet posted to your account. At the time of presentment, if the available balance in your account is less than the transaction amount of the check or item presented, the check or item will be considered an overdraft and will be returned or declined, unless it is covered by the Overdraft Privilege terms described below. Verity Credit Union may authorize a transaction when you use your debit card to conduct transactions with merchants or POS facilities. However, your subsequent account activity may affect whether you have available funds to cover the check when it is presented to us. Verity Credit Union has no control over the timing when checks or other items are presented.
- A link to a savings account or a line of credit is a less expensive Overdraft coverage option than the Overdraft Privilege option. 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 Digital Banking or Telephone Teller to keep track of your balance.
- If multiple items would overdraw your account on the same day, each item would be assessed an appropriate Overdraft Fee of $10. The Overdraft fee will apply each time a check or item is presented that results in an overdraft. If a check is returned and represented for payment on an overdrawn account, an Overdraft fee will apply upon the presentment resulting in an overdraft. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.
- Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.
- Although under payment system rules, Verity Credit Union may be obligated to pay some unauthorized debit card transactions, Verity 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 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. Verity Credit Union will not pay debit card and ATM overdrafts unless you consent and authorize Verity Credit Union to do so.
- Except as described in this letter, Verity 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.
- Overdraft Privilege limits of up to $800 are available for eligible Personal Checking accounts opened at least 30 days in good standing.
- Overdraft Privilege limits of up to $1,000 are available for eligible Business Checking accounts opened at least 60 days in good standing
- 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 (30) days for a minimum period of 2 business days.
- 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 and Disclosure Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.
*For the transfer fee and the per item fee listings, please view the current rate and fee schedule. Accounts will be charged the standard Overdraft fee of $10.00 for handling each overdraft created by check, ACH, Point-of-Sale, ATM withdrawal, in-person withdrawal or other electronic item that is paid. There is no fee for items returned unpaid. An overdrawn balance must be repaid within 30 days. We may not pay items under your Overdraft Privilege if you do not maintain your account in good standing by bringing your account balance to a positive balance within every thirty (30) day period for a minimum of two business days, if you default on any loan or other obligation to Verity Credit Union or if your account is subject to any legal or administrative order or levy. For more information, read our Overdraft Protection disclosure.
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