Overdraft Protection and Courtesy Pay in a Nutshell
Minute Read
(Edited by Shauna Scarnato)
We’ve all been there—you think there’s enough in your checking account to cover a bill, only to discover an overdraft fee or have your debit card declined at checkout. It’s frustrating, unexpected and inconvenient. That’s why we offer three types of overdraft services designed to help you avoid these situations and keep your finances running smoothly. Let’s take a closer look at how each option works.
Overdraft Protection
Overdraft Protection allows you to link your checking account to another Members 1st account—such as your savings, money market or even a line of credit. If your checking account doesn’t have enough to cover a transaction, we’ll automatically transfer money from your linked account (as long as it’s available) to make up the difference. This helps prevent declined purchases or returned payments and is a great option for members who want to avoid overdraft fees and have a backup ready when needed.
Courtesy Pay
Courtesy Pay acts as a safety net if you don’t have Overdraft Protection or if your linked account doesn’t have enough funds. You're automatically enrolled (with the option to opt out), and when needed, we’ll strive to pay transactions that exceed your available balance—helping you avoid the hassle of returned checks, declined charges and late fees. Courtesy Pay applies to checks, ACH debit, bill pay and recurring debit card transactions. If used, your account may result in a negative balance up to the amount of the Courtesy Pay limit, and you will be charged a fee for each item paid.
Extra Courtesy Pay
Extra Courtesy Pay is a service provided to qualifying members if they opt in. It extends your Courtesy Pay coverage to include non-recurring debit card purchases, giving you added flexibility. You may be charged a fee each time we pay or return a transaction. For more information, refer to the disclosure.
Many members find the best protection by using both Overdraft Protection and Courtesy Pay together. Overdraft Protection taps into your linked account first to cover any shortfalls. If those funds aren’t sufficient, Courtesy Pay and Extra Courtesy Pay step in as helpful backups. Life can get hectic, and it’s easy to lose track of balances. With our overdraft services, you have tools that offer protection and keep your finances on track.
