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Overdraft Protection & Overdraft Courtesy Pay

Life happens! Santa Fe FCU understands that unexpected overdrafts occur from time to time - Overdraft Coverage can help. 

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

OD Protect - Link to another deposit account you have at Santa Fe Federal Credit Union1 $0 fee per transfer
OD Protect Line of Credit1, 2 Subject to Interest
Overdraft Courtesy Pay $25 Overdraft Fee per item

OD Protect

Applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Santa Fe Federal Credit Union for finance charge.

Overdraft Courtesy Pay

Allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have OD Protect, Overdraft Courtesy Pay is still available as secondary coverage if the other protection source is exhausted. Please review the “What Else You Should Know” section at the bottom of this page for other important information.

Transactions covered with Overdraft PrivilegeStandard Coverage (No action required)Extended Coverage (Your consent required)
Checks XX
ACH - Automatic Debits XX
Recurring Debt Card Transactions XX
Online Bill Pay Items XX
ATM Transactions  X*
Everyday Debit Card Transactions  X*

*If you choose Extended Coverage, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage.

The Consumer Financial Protection Bureau encourages you to Know Your Overdraft Options. 

You can authorize us to pay overdrafts or discontinue Overdraft Courtesy Pay in its entirety by logging into your account online or stopping by your local branch. You can also fill out the Overdraft Authorization Form to authorize electronically.  If you have any questions, please contact us at 800-733-2804 or 806-373-0736 or sending us an email at

What Else You Should Know

  • A link to another account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, internet banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit
  • The $25 Overdraft Fee is the same fee amount that is charged if an item is returned as unpaid. If your consumer account is overdrawn by $25 or less, there is no fee. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Item Fee of $25. All fees and charges will be included as part of the Overdraft Courtesy Pay limit amount. Your account may become overdrawn more than the Overdraft Courtesy Pay limit amount because of a fee.
  • Recipients of federal or state benefits payments may choose to pay the outstanding balance and the fee for overdrawing your account by stopping by our office. If you do not wish us to deduct the amount overdrawn and the fee for the overdraft from funds that you deposit or that are deposited into your account, please call us at (800) 733-2804 or (806) 373-0736.
  • If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, Santa Fe Federal Credit Union will charge a Return Item Fee each time it returns the item because it exceeds the available balance in your account. Because we may charge a Return Item Fee Name each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. If, on re-presentment of the item, the available balance in your account is sufficient to cover the item Santa Fe Federal Credit Union may pay the item, and, if payment causes an overdraft, charge an Overdraft Fee. We may use the terms “item” and “transaction” interchangeably.
  • There is no limit on the total Overdraft Fees per day we will charge.
  • This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to 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. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Item Fees assessed. 
  • Overdraft Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice. 
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Account Agreement and Funds Availability Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.
  • We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
  • Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Courtesy Pay limit and may also help you avoid overdrafts in excess of your available balance. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
  • Santa Fe Federal Credit Union may suspend your debit card if we are unable to contact you after 3 months due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated. 
  • If your debit card is suspended, you will be unable to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s) at the ATM while your debit card is suspended. The debit card will be suspended 3 months after we confirm your incorrect contact information. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
Understanding your available balance
Your account has two kinds of balances: the Ledger Balance and the Available Balance.
  • We authorize and pay transactions using the Available Balance. 
  • Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
  • Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds. 
  • The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Courtesy Pay limit and any available OD Protect. 
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available OD Protect but does NOT include the Overdraft Courtesy Pay limit. 
  • Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Deposit Account Agreement and Funds Availability Disclosure, which will reduce the amount in your Available Balance. 
  • Please be aware that the Overdraft Courtesy Pay amount is not included in your Available Balance provided through online banking, mobile banking or Santa Fe Federal Credit Union’s ATMs.
  • We 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. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, an Overdraft Fee may be assessed.
  • Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Courtesy Pay limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
Understanding your Overdraft Privilege Limits
  • New consumer checking accounts will receive a $250 Introductory Overdraft Courtesy Pay limit at account opening that will be increased to $750 after 60 days in good standing for consumer accounts. 
  • Overdraft Courtesy Pay may be reduced 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 31 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Courtesy Pay limit reinstated. Please note that members with charge offs reported to ChexSystems are not eligible for the Overdraft Courtesy Pay on their accounts. 

If you have any questions about OD Protect or Overdraft Courtesy Pay, please call us at 800-733-2804 or 806-373-0736 or visit one of our locations.

About Santa Fe FCU

We are a full-service financial institution offering savings, checking, loans, and the digital services you need to keep you going! You'll find personalized service, great rates, and a banking experience that you can benefit from at all stages of life. Learn More