Overdraft Protection and Courtesy Pay Privilege
Life happens! First Financial Federal Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.
Overdraft Coverage Options
The choice is yours. Consider these ways to cover overdrafts:
Overdraft Protection linked to another deposit account you have at First Financial 1
|Transfer fee of up to $15 based on Rewards First tier|
|Overdraft Protection Line of Credit 1, 2||Subject to interest|
|Courtesy Pay Privilege Standard or Extended Coverage||Up to $35 Overdraft Fee per item presented*|
1Call us at 732.312.1500, send us a secure message through online banking, or come by a branch to sign up or apply for these services; 2Subject to credit approval. *Per item presented means each time an item is presented, including representment.
Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account, or line of credit you may have at First Financial for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.
Courtesy Pay Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Courtesy Pay Privilege is still available as secondary coverage if the other protection source is exhausted. Please review What Else You Should Know for other important information.
|Transactions Covered with Courtesy Pay Privilege||
(No action required)
(Your consent required on consumer accounts)*
|ACH - Automatic Debits||X||X|
|Recurring Debit Card Transactions||X||X|
|Online Bill Pay Items||X||X|
|Everyday Debit Card Transactions||X*|
|If you would like to select Extended Coverage for future transactions:|
*If you choose Extended Coverage on your consumer account, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Courtesy Pay Privilege Extended Coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.
You can discontinue Courtesy Pay Privilege in its entirety by contacting us at 732.312.1500 or sending us a secure message through online banking.
- A link to another account or line of credit may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile, internet, and telephone banking services to track your balance. For financial education resources, please visit our Tools & Publications webpage, or mymoney.gov.
- The Overdraft Fee is based on the amount of Courtesy Pay Privilege needed to cover the transaction. If the amount of Courtesy Pay Privilege to cover the transaction is $0.99 or less, it will not result in a fee. If the amount of Courtesy Pay Privilege to cover the transaction is between $1.00 and $14.99, it will result in an Overdraft Fee of $5. If the amount of Courtesy Pay Privilege to cover the transaction is between $15.00 and $49.99, it will result in an Overdraft Fee of $10. If the amount of Courtesy Pay Privilege to cover the transaction is between $50.00 and $99.99, it will result in an Overdraft Fee of $25, and if the amount of Courtesy Pay Privilege to cover the transaction is $100 or more, it will result in an Overdraft Fee of $35. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee of $35, $25, $10, or $5 or a Returned Fee of $35. All fees and charges will be included as part of the Courtesy Pay Privilege limit amount. Your account may become overdrawn more than the Courtesy Pay Privilege limit amount because of a fee.
- For consumer accounts, there is no limit on the total Overdraft Fees per day we will charge.
- Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft Fee from funds that you deposit or that are deposited into your account, may call us at 732.312.1500 to discontinue Courtesy Pay Privilege.
- If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, First Financial (“We”) will charge a Returned Fee each time it returns the item because it exceeds the Available Balance in your account. Because we may charge a Returned Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge a Returned Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an Overdraft Fee.
- This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post ACH credits before debits. ATM, checks, ACH debits, and debit card transactions are posted in the order in which the items are received; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Returned Fees assessed.
- Courtesy Pay Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Membership and Account Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.
- We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we 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 Courtesy Pay Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
Understanding your Available Balance
Your account has two kinds of balances: the Actual Balance and the Available Balance.
- We authorize and pay transactions using the Available Balance.
- Your Actual Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
- Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Actual Balance, less any holds due to pending debit card transactions and holds on deposited funds.
- The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Courtesy Pay Privilege limit and any available Overdraft Protection.
- The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Courtesy Pay Privilege limit.
- The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Courtesy Pay Privilege limit.
- Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction - but later upon settlement, it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Funds Availability Policy Disclosure, which will reduce the amount in your Available Balance.
- Please be aware that the Courtesy Pay Privilege amount is not included in your Available Balance provided through online banking, mobile banking, or First Financial’s ATMs.
- We 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, we will not pay items if the Available Balance in your account (including the Courtesy Pay Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
Understanding Courtesy Pay Privilege Limits
- New consumer and business checking accounts will receive a $100 Introductory Courtesy Pay Privilege limit at account opening that will be increased to $500 after 45 days in good standing for consumer accounts, or to $1,000 after 60 days in good standing for business accounts.
- Courtesy Pay 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 Courtesy Pay Privilege limit reinstated.
If you have any questions about Overdraft Protection or Courtesy Pay Privilege, please call us at 732.312.1500 or visit a branch.