Overdraft Courtesy Pay Terms & Conditions

General

The Overdraft Courtesy Pay Terms and Conditions are part of the overall terms and conditions that govern your accounts at Santa Fe FCU (“we”, “us”, “our”). The information herein is being provided to help you understand what happens if your account is overdrawn. Understanding the concepts of overdrafts and non-sufficient funds (NSF) is important and can help you avoid fees and charges from being assessed.

An overdraft occurs when you do not have enough funds in your account to pay for a transaction, but we pay (or cover) the transaction anyway. An NSF transaction occurs when you do not have enough funds in your account to pay for a transaction, and we do not pay (or cover) the transaction. The NSF transaction is rejected and returned unpaid. In either situation, we may charge you an Overdrawn Item Paid fee ("overdraft fee”) or Return Item Fee (“NSF fee”) as set forth in the current Fee Schedule.

There are several ways your account may become overdrawn or be subject to an NSF transaction, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you (i.e. debit card at point of sale); (3) the return of unpaid items deposited by you; or (4) charges by us pursuant to the terms and conditions of your account (5) the deposit of items which, according to the Funds Availability Policy, are treated as not yet available

Understanding Your Balance

It is important to understand how a transaction may cause an overdraft based on the account balance. Your account has two types of balances:

Available Balance: As the name implies, your available balance is calculated based on the money “available” in your account to make payments. In other words, the available balance takes ACH credit transactions and debit card transactions that have been authorized, but not yet settled, and adds or subtracts them from the ledger balance. In addition, when calculating your available balance, any “holds” placed on deposits that have not yet cleared are also subtracted from the ledger balance. 

Importantly, your “available balance” may not be the same as your account’s “ledger balance.” This means an overdraft, or an NSF transaction could occur regardless of your account's ledger balance.

Ledger Balance Your account’s ledger balance (sometimes called the “actual balance”) includes transactions that have settled up to that point in time, that is, transactions (deposits and payments) that have posted to your account. The ledger balance does not include outstanding transactions (such as checks that have not yet cleared and electronic transactions that have been authorized but which are still pending). The balance on your periodic statement is the ledger balance for your account as of the statement date.

Refer to your Funds Availability Policy disclosure for more information on how deposits affect your account balance.

Assessment of overdraft or NSF fees is based on the account’s available balance at the time the transaction posts.

Eligibility

To be eligible for Overdraft Courtesy Pay, you and your account must meet the following criteria:

1. The account must be in “good standing”;
   1. makes sufficient deposits to bring the account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all credit union fees and charges);
   2. there are no legal orders, levies or liens against the account.
2. The accountholder is not delinquent on any obligation to the Credit Union;
3. The accountholder must not have had a bankruptcy loan with the Credit Union;
4. The accountholder must not have had a previously charged off unpaid overdraft balance;
5. The accountholder must have a valid address;
6. The accountholder avoids excessive overdrafts, suggesting the use of the Program as a continuing line of credit.

If your account becomes temporarily ineligible, your access to Overdraft Courtesy Pay will be restored to cover overdrafts the first business day after your account becomes eligible again, unless we notify you otherwise or you request this service be removed from your account. We reserve the right to limit participation and to suspend, revoke, or discontinue this service without prior notice to you.

Overdrafts and Fees

While we are not obligated to pay any item presented for payment if your account does not contain sufficient funds, as long as your account is eligible and you have not opt-ed out, we may, at our discretion, honor withdrawal requests and pay items that overdraw your account up to your overdraft limit as a noncontractual courtesy. However, the fact that we may honor withdrawal requests and pay items that overdraw your account does not obligate us to do so later. We can change our practice of paying, or not paying, discretionary overdrafts pursuant to Overdraft Courtesy Pay without notice to you. We will notify you promptly of any insufficient fund items paid or returned, however we have no obligation to notify you before we pay or return any item. We have other overdraft protection plans, such as a link to your savings or checking account or an overdraft line of credit, which may be less expensive than Overdraft Courtesy Pay.

You agree that we may charge fees for overdrafts and NSF transactions. Our overdraft fee is $25 and our NSF fee is $25, as set forth in the current Fee Schedule. You must bring your account to a positive end-of-day balance no later than 30 calendar days after the creation of the overdraft, or your limit will be suspended. We may use subsequent deposits, including direct deposits of social security or other government benefits, to cover any negative balances including fees. If there is more than one owner on the account, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts including all fees charged.

Multiple insufficient items will result in multiple fees. For example, three paid items in one day will result in three separate fees. To help you manage your account, the total fees you have paid for insufficient items (both paid and returned) during the current statement cycle and for the year-to-date will be reflected on your periodic account statement.

Keeping track of your balance is important for many reasons and is the best way to avoid overdraft and NSF fees. We provide several convenient ways you can review your balance including reviewing your periodic statement, online banking, mobile banking, telephone banking (800) 733-2804, or visiting one of our branches.

Re-presented Items

Previously returned items may be re-presented for payment by the payee or their financial institution multiple times (representments). It is our policy not to assess overdraft or NSF fees on items that are re-presented. We are working with our processor to prevent overdraft and NSF fees in this situation, but our processing system cannot prevent overdraft or NSF fees at this time. If our processing system inadvertently charges you for a re-presented item, please contact us for a refund of this fee.

Overdraft Courtesy Pay should not be viewed as an encouragement to overdraw your account. To avoid fees, we encourage you to manage your finances responsibly by keeping track of your account balance and reconciling it regularly. Balances provided do not include your Overdraft Courtesy Pay limit. Financial education tools may be found at our website www.santafefcu.com/services/education/financial-education.

 Authorized Positive, Post Negative (APPN)

APPN transactions occur when your account had a sufficient available balance at the time the transaction was authorized, but given the delay between authorization and posting, the balance is not sufficient at the time the transactions posts.

It is our policy not to charge for transactions that are approved on a positive balance but settle on a negative balance. If our processing system charges you a fee for an approved positive settle negative transaction, please contact us for a refund.

Coverage for ATM and One-Time Debit Card Transactions

We will decline ATM and one-time debit card transactions that would overdraw your account unless you opt in for coverage of these transactions. If you opt in, we may authorize ATM and one-time debit card transactions by using your available balance and your Overdraft Courtesy Pay limit. If you have not opted in to coverage for ATM and one-time debit card transactions and you would like to, or if you would like to revoke your previous authorization, please call our customer assistance line at (800) 733-2804 or (806) 373-0736, visit our website at www.santafefcu.com, email us at support@santafefcu.com or visit one of our branches.

Overdraft Limit

New accounts will be assigned an introductory overdraft limit of $250.00 at account opening. After your account is open for 60 days, an overdraft limit may be assigned based on eligibility criteria. Locate your account type to reference the corresponding limit.

Checking ……………$ 750

We will not approve an overdraft for you in excess of the predetermined limit assigned to your account. So as not to exceed your limit, remember that the amount of the overdraft plus the applicable overdraft fee per item will be deducted from your Overdraft Courtesy Pay limit.

We limit the program to 6 account(s) per accountholder.

 Your Overdraft Courtesy Pay limit may be available for each item created by checks and other transactions made using your checking account number, teller withdrawals, ACH transactions, automatic bill payments, or recurring debit card payments.

Remove Overdraft Courtesy Pay Coverage

You may remove Overdraft Courtesy Pay coverage from your account at any time, but you are responsible for any overdrawn balances. To remove Overdraft Courtesy Pay coverage, please call our customer assistance line at (800) 733-2804 or (806) 373-0736 or visit one of our branches. Even if coverage is removed, insufficient items and associated fees and charges may still apply.

Payment Order of Transactions

The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. The payment order can affect the number of overdraft or NSF items and the amount of the fees you may have to pay. To assist you in managing your account, we are providing you with the following information regarding how we process those items. We encourage you to practice good account management which may help you to prevent making payments without sufficient funds and potentially incurring the resulting fees.

In the normal course of business, we generally post items throughout the day and post ACH credits before debits. Debits post in the following order: 1. Automatic debits (such as loan payments), 2. Force-paid items from prior day processing, 3. Outgoing wire transfers as requested, 4. Teller cash withdrawals in order received, 5. Over the counter checks in order received, 6. ATM and Debit Card transactions (Point of sale and recurring) in time stamp order, 7. ACH in low to high order, 8. Checks in amount by low to high order, and 9. any additional miscellaneous items; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. In addition, we post incoming transactions in real time, so checks and other debits to your account may post before deposits and other credits. If there are insufficient funds in your account at the time a transaction posts, you will be charged for each item paid. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account.