Overdraft Coverage Options
Life happens! Here at SFCU we understand that unexpected overdrafts occur from time to time – Overdraft Coverage can help!
Overdraft Coverage Options
An overdraft occurs when you do not have enough money in your checking account to cover a transaction, but we pay it anyway.
The choice is yours. Consider these ways to cover overdrafts:
(Link to another deposit account at SFCU)
|$5 for each transfer.|
|Overdraft Privilege||$25 Overdraft Fee Per Item.|
Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at SFCU for a fee.
Overdraft Privilege allows you to overdraw your account up to the disclosed limit in order to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is available as a secondary coverage.
Please review the “What Else You Should Know" section at the bottom of this page for other important information.
|Transactions Covered with Overdraft Privilege||Standard Coverage |
(NO action is required)
|Extended Coverage |
(your consent is required)
|ACH - Automatic Debits||✓||✓|
|Recurring Debit Card Payments||✓||✓|
|Online Bill Pay Items||✓||✓|
|Teller Window Transactions||✓||✓|
|Everyday Debit Card Transactions||✓|
If you would like Extended Coverage you can opt in by calling us at 508-678-2851, option #3, visiting us in branch or by simply clicking on the Extended Overdraft Privilege Form (located in the upper right).
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft your transaction will be declined.
You can discontinue the Overdraft Privilege in its entirety by contacting us at 508-678-2851, option #3 or sending us an email at info at somersetfcu dot com.
What Else You Should Know
- A link to another account or a line of credit may be a less expensive option than an overdraft. 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 our mobile banking, internet banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.
- The $25 Overdraft Fee that is charged if you overdraw your account more than $10 is lower than the $30 fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee of $25 or a Return Item Fee of $30. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
- If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, Somerset Federal Credit Union (SFCU) will charge a Return Item Fee each time it returns the item because it exceeds the available balance in your account. If, on re-presentment of the item, the available balance in your account is sufficient to cover the item SFCU may pay the item, and, if payment causes an overdraft, charge an Overdraft Fee.
- For consumer accounts, there is a limit of $150 per day we will charge. We will not charge an Overdraft Fee if a consumer account is overdrawn by $10 or less. These exceptions do not apply to business accounts.
- We generally post items in the following order: 1) Force-paid items from prior day processing, posted in time-stamp order, 2) Outgoing wire transfers, 3) Cash withdrawals with teller, 4) Over-the-counter items - posted in serial number order, 5) Cash withdrawals through an ATM, 6) Debit card transactions - posted in time-stamp order, 7) Online banking debits - posted in time-stamp order, 8) TellerPhone Debits, 9) ACH Debits in order of presentment, 10) In-clearing checks - lowest amount to highest amount order, 11) Automatic Debit Transactions, such as loan payments and 12) Fees and other miscellaneous items. 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 or Returned NSF Fees assessed.
- Although under payment system rules, SFCU may be obligated to pay some unauthorized debit card transactions, SFCU will not authorize debit card or ATM transactions unless your account’s available balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
- Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) 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 balance that could result in suspension of your debit card. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
- SFCU authorizes and pays transactions using the available balance in your account. SFCU may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available Overdraft Protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Protection, but does NOT include the Overdraft Privilege Limit. For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for authorizing ATM and everyday debit card transactions.
- Please be aware that the Overdraft Privilege amount is not included in your available balance provided through online banking, mobile banking or SFCU’s ATMs.
- SFCU will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
- Except as described herein, SFCU will not pay items if the available balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
- SFCU may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Overdraft Privilege limit (as described herein). Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Overdraft Privilege limit, is positive and then you contact us.
- SFCU may also suspend your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
- SFCU may also suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated.
- If your debit card is suspended, you will be unable to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s) at the ATM while your debit card is suspended. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
- An Overdraft Privilege limit of $500 will be granted to eligible consumer checking accounts opened at least 30 days in good standing.
- An Overdraft Privilege limit of $500 will be granted to eligible Business Checking accounts opened at least 30 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 reduced 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 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Privilege limit reinstated.
- 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 Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.