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Courtesy Pay

What You Need to Know about Overdrafts and Overdraft Fees

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway.  We can cover your overdrafts in two different ways:

  1. We have Courtesy Pay practices that come with your account
  2. We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than our Courtesy Pay practices. To learn more, ask us about these plans.

This notice explains our Courtesy Pay practices.

What are the Courtesy Pay practices that come with my account?

We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

  • ATM transactions
  • Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Neighbors Federal Credit Union pays my overdraft?

Under our Courtesy Pay practices:

  • We will charge you a fee of up to $32.00 each time we pay an overdraft.
  • There is no limit on the total fees we can charge you for overdrawing your account.

What if I want Neighbors Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, please complete the opt in.