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Overdraft Coverage

Q: What is overdraft protection?
A: Overdraft protection services apply to all types of transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from another account or line of credit you may have at Educational Systems Federal Credit Union, for a fee or finance charge.

Q: What are my overdraft coverage options?
A: We offer three overdraft options. You can select which option(s) work best for you.

Service Cost/Limitations
Overdraft Privilege Protection: Link your checking account to your savings account No fee per transfer, limited to six transfers per month
Line of Credit1 Finance charges, subject to credit approval
Courtesy Pay $35 Courtesy Pay fee per overdraft

Q: What is Courtesy Pay?
A: Courtesy Pay allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction.

Educational Systems FCU may provide you a specific Courtesy Pay limit depending on the type of account you have. You will receive a letter approximately 35 days after account opening. You do not have Courtesy Pay until you receive this notification. Even if you have overdraft protection, such as a transfer from another account, Courtesy Pay is still available as a secondary coverage if the other protection sources are exhausted.

Please be aware that the Courtesy Pay amount is not included in your balance provided through Digital Banking, Audio Response Teller (ART) telephone banking or Educational Systems FCU ATMs.

Q: What types of transactions does Courtesy Pay cover?
A: The types of transactions covered by Courtesy Pay depend on the coverage selected. See the chart for more information.

If you choose Premium Courtesy Pay, all the transaction types listed in Standard Courtesy Pay are included, along with ATM withdrawals and everyday debit card transactions. Educational Systems FCU will not authorize overdrafts for everyday debit card and ATM transactions on consumer accounts unless you give us your consent to pay these overdrafts by electing Premium Courtesy Pay. Existing business accounts automatically have Premium Courtesy Pay.2

Transactions Covered with Courtesy Pay Standard Courtesy Pay
(No action required)
Premium Courtesy Pay
(Your consent is required on consumer accounts.)
Checks X X
ACH automatic debits X X
Recurring debit card payments X X
Bill Pay items X X
Teller window transactions X X
ATM transactions   X
Debit card transactions   X

Q: How much does Courtesy Pay cost?
A: There is no fee for having Courtesy Pay unless you use it. The Overdraft Fee of $35 will be imposed for overdrafts created by checks, ACH, point-of-sale, ATM withdrawals, in-person withdrawals, or by other electronic means. If multiple items would overdraw your account on the same day, each item would be assessed the appropriate fee. This is the same fee that Educational Systems FCU charges for items returned to the payee due to insufficient funds.

The maximum amount of Overdraft fees that we will charge to your consumer account is four (4) Courtesy Pay fees ($140) per day.

Your account may become overdrawn in excess of the Courtesy Pay limit amount as a result of the assessment of a fee. The total negative balance, including all fees and charges, is due and payable upon demand. Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Membership and Account Agreement.

Q: What if I don’t want Courtesy Pay?
A: You can request to discontinue the Courtesy Pay service in its entirety at any time by contacting us at 301.779.8500 or visiting a branch. Without Courtesy Pay, your insufficient funds items will be returned to the payee and/or declined at the point of purchase, unless you have overdraft protection available to cover the item(s). You will be charged the standard return fee of $35 for all returned items.

Q: What if I want Educational Systems Federal Credit Union to pay my ATM and everyday debit card overdrafts (Premium Courtesy Pay)?
A: If you want us to authorize and pay overdrafts caused by ATM and everyday debit card transactions (Premium Courtesy Pay), tell us by using one of the following methods:

Note: Existing business accounts automatically have access to Courtesy Pay for ATM and everyday debit card transactions (Premium Courtesy Pay).2

Q: What else do I need to know?

  • We generally post items in the following order: 1) ACH credits, 2) ACH debits (posted in order they are in the incoming file from the Federal Reserve), 3) checks (post largest amount to least amount); however, exceptions may occur. ATM and debit card transactions are posted as they are received. The order in which transactions are posted may impact the total amount of overdraft or return fees assessed.
  • A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts.
  • Although under payment system rules, Educational Systems FCU may be obligated to pay some unauthorized debit card transactions, the Credit Union will not authorize debit card or ATM transactions unless there are sufficient available funds (including overdraft coverage) to cover the transactions and the amount of any fee(s).
  • Giving us your consent to pay everyday debit card and ATM overdrafts may result in you incurring overdraft fees for transactions that we would otherwise be required to pay without assessing an overdraft fee. However, this may allow us to authorize transactions up to the amount of your Courtesy Pay limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
  • Except as described on this page, Educational Systems FCU will not pay items if your account does not contain available funds (including the Courtesy Pay limit) to cover the item(s) and the amount of any fee(s).
  • We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account including any Courtesy Pay limit.
  • Educational Systems FCU 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.
  • Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Courtesy Pay may be discontinued 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 thirty-two (32) days.

Overdraft Protection and Courtesy Pay Summary

  • Overdraft protection services allow you to link other sources you have with Educational Systems FCU to your checking account in order to prevent overdrafts and are less expensive options than an overdraft.
  • Courtesy Pay allows you to overdraw your account for a fee of $35 in order to pay a transaction.
  • Courtesy Pay limits of up to $700 are available for existing eligible personal Checking accounts opened at least 35 days in good standing.2
  • Courtesy Pay limits up to $700 are available for eligible Business Checking accounts opened at least 60 days in good standing.
  • Standard Courtesy Pay covers checks, Bill Pay payments, ACH transactions, or automatic/pre-authorized debits that you establish (insurance premiums, utility bills, etc.).
  • Premium Courtesy Pay covers ATM and everyday debit card transactions on your personal accounts with your prior consent. Existing business accounts automatically have Premium Courtesy Pay.2
  • Both Overdraft Protection and Courtesy Pay may enable you to avoid expensive merchant returned-check charges.
  • Both Overdraft Protection and Courtesy Pay may enable you to avoid having your ATM or debit card transactions declined due to insufficient funds.
  • You must deposit the full amount of the overdraft (within 32 days), including any fees assessed to continue to receive Courtesy Pay.
  • Good account management is the best way to avoid overdrafts. Use our mobile app, Digital Banking and Audio Response Teller (ART) telephone banking services to help keep track of your balance. You can also sign up to receive Alerts (personal notifications about your account) by text, email or both. You can be notified when your account balance is below an amount that you select.
1 Contact us at 301.779.8500 or visit a branch to apply for a Line of Credit.
2 Existing business accounts are eligible for Courtesy Pay. The Credit Union does not offer new business accounts.