If you’ve ever had a payment or transaction returned due to non-sufficient funds (NSF), you may be familiar with the term “overdraft,” sometimes used interchangeably with “overdraw.” One of the ways you can avoid the hassle of overdrawing your account is with our no-fee Overdraft Protection Transfer Service.
What is Overdraft Protection Transfer Service?
When an account doesn’t have enough funds to cover the amount of a check, ACH transaction, or bill payer transaction, Overdraft Protection Transfer Service allows funds from a separate account to be transferred to cover the amount. We don’t charge a fee for this service.
As a member, you have a wide variety of accounts that you can link, including your Regular share, additional savings shares, money market, and Classic Card or Founder’s Rewards Card. The shares or loans selected for Overdraft Protection Transfer Service must be under the same member’s account number. Keep in mind that setting up overdraft protection through your Classic Card or Founder’s Rewards Card can increase your loan balance and is considered a cash advance*. Interest will begin accruing immediately. Plan to pay off any balances as soon as possible to avoid paying additional interest and finance charges.
Overdraft Protection Transfer Service does not apply to all types of transactions and does not include debit card purchases and ATM transactions. IRAs and certificates can’t be used as overdraft protection accounts.
Note that while the above guidelines apply to most PSECU members, Overdraft Protection Transfer Service is not available for custodial accounts and may not be available for some other specialty account types.
Setting Up Overdraft Protection Transfer Service
You can enroll in Overdraft Protection Transfer Service for your checking account in online banking.
Open the main menu.
Under Transfers, select Overdraft Protection.
Select which options you'd like to be used as your overdraft protection and the order in which you’d like them used, and click Confirm.
If you prefer, you can also call us at 800.237.7328, and we can assist you in setting up Overdraft Protection Transfer Service on your account.
What is Courtesy Pay?
In addition to Overdraft Protection Transfer Service, we offer a discretionary service known as Courtesy Pay to eligible account holders. If a check (including a bill payer check) or ACH transaction is presented for payment and your account does not have a sufficient available balance to pay it, then we may choose to pay that check (including a bill payer check) or ACH transaction and overdraw your account. The Courtesy Pay service will be utilized after all Overdraft Protection Transfer Service options have been depleted. Unlike Overdraft Protection Transfer Service, Courtesy Pay does have a fee of $15, which will be deducted from your account along with the payment presented. Courtesy Pay is not available for one-time debit card purchases, ATM transactions, or electronic bill payer transactions.
The Courtesy Pay and includes any fees assessed, so if you’ve hit that threshold, items presented for payment will be returned unpaid. While we’ve eliminated all Non-Sufficient Funds (NSF) fees, this could result in fees from the payee.
Tips for Preventing Overdrafts
Even if you’ve set up Overdraft Protection Transfer Service, don’t get comfortable spending more than you have. Relying solely on Overdraft Protection Transfer Service or Courtesy Pay could indicate you may not be managing your money properly. Take time to review your budget and see if there are areas where you can cut back so you aren’t relying on these services to cover your bills.
Setting up account alerts is a smart way to track your account balances to make sure you have enough funds to cover a payment or check, even if you have overdraft protection set up. Monitoring your account and transactions regularly gives you a better handle on your finances.
Overdraft Protection Transfer Service helps to reduce fees and provide peace of mind when money is tight. For more tips on managing your money, visit our Resource Center.
*If you choose to use a credit card to protect your checking account from being overdrawn, those overdraft transfers are considered cash advances. Refer to your credit card agreement for fees and charges related to cash advances.
The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.