MEFCU offers Courtesy Pay as a service to pay members' items when they have an insufficient available balance in their checking account or are short of available funds to avoid the embarrassment and inconvenience of returned items, as long as the account remains in good standing. Having Courtesy Pay will often prevent returned item fees and late charges posed by merchants or other payees.
It is important to know that when you use your Debit Card, some transactions don’t get debited right away. Those transactions sometimes show up as “pending” which means those funds have not yet been removed from your account but will be removed eventually. Pending transaction can make your overall balance look higher than it actually is which can also trigger Courtesy Pay. While Courtesy Pay can be a convenient back up for insufficient funds, it can also be a shock when your account is hit with multiple $35 fees because it has been overdrawn.
Tips to avoid Courtesy Pay Overdraft Fees
Tip 1: Know Your Balance
- Tools such as online banking and mobile banking makes it easy and convenient to check your balance frequently. If you are unsure of how much money you have in your account, simply login and check your balance before you make a purchase. Make sure you are subtracting any pending transactions from your available balance because pending transactions will eventually be debited from your account. Courtesy pay will allow you to make purchases even though you don’t have enough money in your account but each overdrawn transaction will incur a $35 fee
Tip 2: Know Your Options-
There are multiple ways to avoid Courtesy Pay fees. You can Opt-out of Courtesy Pay or link your checking account to a savings account or a line of credit. Read the Overdraft Protection section below for more details.
Q: Is there a fee to use Courtesy Pay?
Yes, you will be charged a $35 fee
every time you overdraft your account or for each transaction that brings your account balance to a negative status.
Q: What is an overdraft?
An overdraft occurs when you do not have enough money in your account to cover a transaction, but MEFCU pays it anyway.
Q: Why do I have to opt-in?
Courtesy Pay is already set up to cover transactions including checks, electronic debits and automatic bill payments. As of July 1, 2010 the Federal Government requires consumers to opt-in or agree to use Courtesy Pay to cover ATM and everyday debit card transactions. We need your permission in order to set you up to use this part of the service.
Q: What if I decide I don’t want Courtesy Pay?
We’re happy to talk with you about other options for managing your account. Call us if you’re certain you don’t want your debit card overdrafts authorized when you don’t have sufficient funds in your account. You can Opt-out and we can remove this service.
Q: How do I opt-in or out of this service?
for the request form.
Q. What types of transactions are covered by Courtesy Pay?
Courtesy Pay may cover the following types of transactions:
- ACH transactions
- One-time debit card transactions made in person, by telephone, or online*
- ATM/point of sale transactions*
Overdraft Protection Options
Accounts may be linked to checking accounts to transfer available funds to cover overdrafts. There is a $3 fee per share transfer, but they count as Reg D1 transactions and are included in the monthly limitation of six Reg D transactions per month. The accounts that may be linked are:
- Money Market
- Supplemental Savings
Lines of Credit may be used to cover occasions where there is insufficient available balance in a checking account. There are no fees for these transfers but the loan will accrue interest (based on your APR) based on outstanding balance owed. The Lines of Credit that may be used are:
- Personal Line of Credit
- HELOC (Home Equity Line of Credit)
Have more questions? Feel free to contact us at 1.800.821.7280.
*These types of overdraft coverage will require you to opt in.
1During any calendar month, you may not make more than six withdrawals from a primary or secondary share savings account, or a money market account to any of your credit union accounts or to a third party by means of preauthorized or automatic transfer or instruction. Additionally, only three of the six transactions may be made by check, draft or similar order to a third party. If you exceed these limitations in any month, the credit union may close your account beginning with the fourth occurrence in any month.