What You Need to Know About Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction but Credit Union 1 pays the charge for you anyway. We can cover your overdrafts in two different ways:
1. Overdraft Transfer
Save yourself from the stress of an accidentally overdrawn account with Overdraft Transfer! Overdraft Transfer from Credit Union 1 allows you to “link” your spending account to a CU1 credit card or savings account. If your spending account does not contain sufficient funds to cover a purchase, these funds will be automatically transferred from your “linked” account. Overdraft Transfers from a credit card are fee-free, although interest will accrue per the terms of your credit card. A $5 service fee will be deducted from your balance for Overdraft Transfers from a savings account.
2. Courtesy Pay
When unexpected situations arise and overdrawing your account is necessary, Courtesy Pay may allow you to access emergency funds through an overdraft. These emergency funds would be available as a courtesy from Credit Union 1, to help you make the necessary purchase! Please note that overdraft fees will apply.
With Courtesy Pay on your account, CU1 may authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your spending account number
- Automatic bill payments
- ACH transactions
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to:
- ATM transactions
- Debit card transactions
Note that we pay overdrafts at our discretion. We do not guarantee that we will always authorize and pay any type of overdraft transaction. If we do not authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged for Courtesy Pay?
- We will charge you a Courtesy Pay fee each time we pay an overdraft on your behalf, per our Account Contract, Part 2 Fee Disclosure.
- As with returned item fees, Courtesy Pay fees will be assessed to the account on which the overdraft occurs. These fees will add to your negative balance and count toward your overall Courtesy Pay limit.
- Transactions will be posted to your account in the order received. This may be different than the order they occurred.
- There is no limit on the total fees we can charge you for overdrawing your account.
How do I authorize Credit Union 1 to pay overdrafts on my ATM and debit card transactions?
If you would like us to pay overdrafts on your ATM and debit card transactions, opt in by calling (907) 339-9485 or (800) 478-2222. You may revoke your consent at any time.
View or print the Overdraft Protection Program Opt In Notice