Frequently Asked Questions

Overdraft Coverage

Courtesy Pay* is a service we provide to cover transactions up to a predetermined limit on your checking account. There is a $35 fee for each transaction we cover using Courtesy Pay.

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.

*Educational Systems Federal Credit Union’s Courtesy Pay is a discretionary non-contractual courtesy service that is available on individually and jointly-owned checking accounts in good standing. It is not an obligation of Educational Systems FCU and Educational Systems FCU may refuse to provide Courtesy Pay on any checking account at any time. Educational Systems FCU reserves the right to limit participation and to suspend, revoke or discontinue this service without prior notice. Additionally, Educational Systems FCU may change the terms, conditions and fees within the Courtesy Pay service in accordance with established policies

Courtesy Pay is already set up to cover transactions including checks, electronic debits and automatic bill payments. As of July 1, 2010 the Federal Government requires consumers to opt-in or agree to use Courtesy Pay to cover ATM and everyday debit card transactions. We need your permission in order to set you up to use this part of the service.

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.

You can opt-in by calling 301.779.8500 or stopping by any branch and we’ll do it for you.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway.

We offer three overdraft coverage options:

Overdraft Privilege Protection: A link to your savings account. We can automatically transfer funds from your savings to your checking account to cover up to six transactions a month. There are no fees for this.

Line of Credit: A link to an approved Line of Credit that can be used to cover transactions on your checking account. You must apply and be approved for the Line of Credit. You will pay interest on any balance carried from day to day.

Courtesy Pay: There is a $35 fee per overdraft.

The types of transactions covered by Courtesy Pay depend on the coverage selected. If you choose Premium Courtesy Pay, all the transaction types for 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.

Courtesy Pay limits of up to $700 are available for existing eligible personal Checking accounts opened at least 35 days in good standing and eligible Business Checking accounts opened at least 60 days in good standing.

No, Courtesy Pay is a discretionary overdraft service that can be withdrawn at any time without prior notice.

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.

We will charge you a fee of $35 each time we pay an overdraft.

Yes, you can opt-in at any time.

No. There is a waiting period of 35 days before you can qualify for Courtesy Pay.

Yes, and you will be charged $35 per transaction.

No, as specified by law, we will not pay everyday debit card transactions unless you have specifically opted in for this service.

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.

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.

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:

Call us at 301.779.8500
Visit one of our branch locations
Complete the online Consent Form
Send us an email at [email protected]

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

Courtesy Pay is discountinued and 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.