Overdraft Privilege

Overdraft Privilege

Have You Ever . . .

  • Made an honest mistake in your checkbook?
  • Found yourself "a little short"?
  • Had unusual or unforeseen expenses at just the wrong time?

Relax. . . You Deserve Consideration!

Rather than automatically returning unpaid any insufficient funds items that you may have, we will consider, without obligation on our part, payment of your reasonable overdrafts.

Overdraft Privilegesm Can Mean . . .

  • You can avoid high charges from merchants for returned checks
  • You have new convenience and flexibility in managing your funds
  • Payment of overdrafts up to a $300.00 overdraft (negative) balance for Regular Checking accounts, or $500.00 overdraft (negative) balance for personal checking accounts with Gen Gold

We will charge our normal non-sufficient funds or overdraft charge, as set forth in our Fee Schedule, for each item that will create an overdraft on your account.

Of course, we are not promising to pay your overdrafts, not all accounts are eligible, and some restrictions do apply (See the following Overdraft Privilege Service Description).

Overdraft Privilegesm (Service Description)

It is the policy of FSFCU to comply with applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards.

A non-sufficient funds (negative) balance may result from: (A) The payment of checks, electronic funds transfers, or other withdrawal requests; (B) Payments authorized by you; (C) The return, unpaid, of items deposited by you; (D) The imposition of applicable service charges; or (E) The deposit of items which according to the Credit Union's Funds Availability Policy, are treated as not yet "available" or finally paid.

ATM/Debit Overdraft Opt-In

We provide overdraft services for your ATM and everyday debit transactions upon your agreement (opt-in). To allow us to perform this overdraft service, you must opt-in. You can revoke your opt-in at any time.
What is an overdraft service?

An overdraft service is when a financial institution pays a transaction even though a customer does not have sufficient funds available in the deposit account to cover the amount of the transaction. A fee is charged for this service. Most financial institutions provide this discretionary service to eligible accounts – members do not apply or select to use overdraft services.

A plan that transfers money from a credit card, loan account, or another deposit account is not considered an overdraft service.

Does FSFCU have to pay the transaction if it overdraws the account?

No. The service is discretionary. FSFCU may authorize and pay the transaction or it may decline the transaction. For FSFCU, if the transaction is paid, the member is obligated to promptly bring the account to a positive balance.

What is the effect of the new federal law?

After August 15, 2010, FSFCU cannot provide overdraft services for ATM transactions or everyday debit transactions unless their member have instructed them to do so.

What is an everyday debit transaction?

Generally, an everyday debit transaction is when you use your debit card or card number to make a purchase at a gas station, store, restaurant, or other merchant, or by phone or the Internet. Using your debit card to authorize automatic payment of a recurring bill, such as your utility bill, is not considered an everyday debit card transaction.

Does this affect me if I always keep enough money in my account to cover my transactions?

It might. To understand how, it's important to know about debit holds. You may have experienced a debit hold without even knowing it.

For example, if you use your debit card at a gas station, the transaction will be authorized before you can start the pump. At the time of the authorization, the amount of the transaction is unknown. The gas station will obtain authorization for a selected amount, ($50, for example) and a debit hold will be placed on your account for that amount.

Depending on the technology used, that debit hold might remain on your account for an extended period of time, even if your purchase was for a lesser amount. Because of this, you may have more money in your account than the records show, and a financial institution may have to deny a transaction even though you have sufficient funds in your account.

Also, keep in mind that a financial institution will deny a transaction if the records show you do not have sufficient funds available in your account at the time it is asked to authorize the transaction even if you expect to have deposited sufficient funds in your account by the time the transaction is presented for payment.

*FSFCU will comply with applicable laws and regulations, and conduct business in accordance with applicable safety and soundness standards. We are not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. Rather than automatically returning, unpaid, any non-sufficient funds items that you may have, if your eligible account (primarily used for personal and household purposes) has been open for at least thirty (30) days and thereafter you maintain your account in good standing, which includes at least: (A) Continuing to make deposits consistent with your past practices, and depositing at least $300 or more in your account within each thirty (30) day period, (B) You are not in default on any loan obligation to FSFCU, (C) You bring your account to a positive balance (not overdrawn) at least once every thirty (30) days, and (D) Your account is not the subject of any legal or administrative order of levy, we will consider, without obligation on our part, approving your reasonable overdrafts. This discretionary service will generally be limited to a $300 overdraft (negative) balance for Regular Checking accounts, or $500 overdraft (negative) balance for personal checking accounts with Gen Gold. Of course, any and all fees and charges, including without limitation our non-sufficient funds/overdraft fees (as set forth in our Fee Schedules) will be included in this limit and will apply to any transaction that overdraws your account including, but not limited to, payments unauthorized by Checks, and ACH/Electronic Items. We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. We have no obligations to notify you before we pay or return any item. The amount of any overdrafts plus our Non-Sufficient Funds and/or Overdraft (NSF/OD) Charge(s) that you owe shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent is applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our Non-Sufficient Funds and/or Overdraft (NSF/OD) Charge(s). The overdraft privilege service does not constitute an actual or implied agreement between you and the Credit union. Nor does it constitute an actual or implied obligation of or by the Credit Union. This service represents a purely discretionary courtesy or privilege that Fort Sill Federal Credit Union may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.

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