Discretionary Overdraft Privilege Policy
- A link to another account or line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, instead of multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile, internet, and telephone banking services to track your balance. For financial education resources, please visit www.mymoney.gov.
- The $30 Non-Sufficient Funds fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed a Non-Sufficient Funds fee of $30. All fees and charges will be included as part of the Courtesy Pay limit amount. Your account may become overdrawn more than the Courtesy Pay limit amount because of a fee.
- For consumer accounts where the account owner is under 19 years of age or 65 years of age or older, the above outlined Fee is $5 for each type of item. This is the same fee amount that is charged if a share draft is returned as unpaid for consumer account holders under 19 and over 65 years of age.
- Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Non-Sufficient Funds fee from funds that you deposit or that are deposited into your account may call us at (800) 356-0067 to discontinue Courtesy Pay.
- If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Merrimack Valley Credit Union ("We") will charge a Non-Sufficient Funds fee each time it returns the item because it exceeds the Available Balance in your account. Because we may charge a Non-Sufficient Funds fee 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 representment of the item. When we charge a Non-Sufficient Funds fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, we may charge a Non-Sufficient Funds fee. We may use the terms "item" and "transaction" interchangeably.
- For consumer accounts, there is a limit of 6 Non-Sufficient Funds fees per day we will charge for overdrawing your account. These exceptions do not apply to business accounts.
- This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post credits before debits. Paper checks are posted in lowest to highest dollar amount, while ATM and debit card transactions are posted in the order in which the items are received. ACH items are posted in the following order when they are received: ACH Credits, followed by ACH debits and if multiple ACH debits are received at the same time, from lowest to highest dollar amount. 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 received and processed may impact the total amount of Fees assessed. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Non-Sufficient Funds fees assessed.
- 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 Deposit Account Agreement and 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 Non-Sufficient Funds fees for transactions that we would otherwise be required to pay without assessing a Non-Sufficient Funds fee. However, this would allow us to authorize transactions up to the amount of your Courtesy Pay limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
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 Courtesy Pay limit and any available Overdraft Protection.
- The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Courtesy Pay limit.
- The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the 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 Disclosure, which will reduce the amount in your Available Balance.
- Please be aware that the Courtesy Pay amount is not included in your Available Balance provided through online banking, mobile banking, or Merrimack Valley 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, a Non-Sufficient Funds fee may be assessed.
- Except as described herein, we will not pay items if the Available Balance in your account (including the Courtesy Pay limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
Understanding Overdraft Privilege Limits
- Pursuant to Merrimack Valley Credit Union’s commitment to always provide you with the best level of service, each new share draft account will have an initial maximum of $100 overdraft (negative) balance limit for this discretionary service. In the future, if your consumer account (primarily used for personal and household purposes) has been open for at least thirty (30) days, or if your commercial account has been open for at least thirty (30) days, and thereafter you maintain your account in good standing, which includes at least:
- A) Bringing your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours;
- B) Not being in default on any loan or other obligation to Merrimack Valley Credit Union and
- C) Not being subject to any legal or administrative order or levy,
- This Courtesy Pay limit may be increased. The Courtesy Pay limit for consumer share draft accounts will generally be limited to a maximum of $750 overdraft (negative) balance. The Courtesy Pay limit for commercial accounts will generally be limited to a maximum of $750 overdraft (negative) balance. Of course, any and all fees and charges, including without limitation the Non-Sufficient Funds Fees (as set forth in our fee schedules and deposit account agreement and disclosure), will be included as part of this maximum amount. Fees are assessed at the end of the processing day, so it may be possible that your account will become overdrawn in excess of the Courtesy Pay limit amount as a result of the assessment of a fee.
While Merrimack Valley Credit Union will have the discretion to pay overdrafts on accounts in good standing (as described herein), any such payment is a discretionary courtesy, and not a right of the member or an obligation of Merrimack Valley Credit Union in its sole and absolute discretion, can cease paying overdrafts at any time without prior notice of reason or cause.
If you have any questions about Overdraft Protection or Courtesy Pay, please call us at (800) 356-0067 or visit a branch.