If you’ve ever had a payment or transaction returned due to non-sufficient funds, you may be familiar with the term “overdraft,” sometimes used interchangeably with “overdraw.” One of the ways you can avoid the hassle and embarrassment of overdrawing your account is with PSECU’s 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 or ACH transaction, Overdraft Protection Service allows funds from a separate account to be transferred to cover the amount. PSECU does not charge a fee for this service.
As a member, you have a wide variety of accounts that you can link, including Regular share, additional shares, Money Market, and Visa® Classic or Founder’s Reward card. The shares or loans selected for overdraft protection must be under the same member’s account number. Keep in mind that setting up overdraft protection through your Visa Classic or Founder’s Reward card can increase the loan balances and are considered cash advances. Interest will begin accruing immediately. Make a plan to pay off any balances as soon as possible to avoid paying additional interest and finances charges.
Overdraft Protection Transfer Service does not apply to all types of transactions and does not include debit card purchases. IRAs and Certificates cannot be used as overdraft protection accounts.
Setting Up Overdraft Protection Transfer Service
Signing up is easy. Setting up your overdraft protection can be done by phone or by logging into online banking. To set up your overdraft protection through online banking, follow these steps:
- Click the drop-down menu at the top left.
- Select Overdraft Protection under Transfers.
- Select which account you’d like to use as your overdraft protection from Current Options.
Your accounts will be set up for overdraft protection in the order you specify. If you’re planning to use your PSECU Visa Classic or Founder’s Reward card as your linked account, you’ll need to complete the Overdraft Protection Transfer Service form, which is available on our website, or can be requested by phone to be mailed to you.
What is Courtesy Pay?
In addition to Overdraft Protection Transfer Service, PSECU offers Courtesy Pay to eligible account holders. This service is only used when no funds are available in the checking account, and after all Overdraft Protection Transfer Service options have been depleted. This is a discretionary service offered to eligible accountholders to pay items presented in the event of non-sufficient funds. Unlike Overdraft Protection Transfer Service, Courtesy Pay does have a fee of $30, which will be deducted from your account along with the payment presented.
The Courtesy Pay limit is $500.00 and includes any fees assessed, so if you’ve hit that threshold, items presented for payment will be returned. This could result in non-sufficient fund fees from PSECU, as well as fees from whomever you’re sending a payment.
Tips for Preventing Overdrafts
Once you’ve set up your overdraft protection, 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 your overdraft transfers to cover your bills.
Setting up account alerts is a great way to track your account balances to make sure you have enough funds to cover a payment or check, even if you do have overdraft protection set up. Monitoring your account and transactions regularly can help you get a better handle on your finances.
Overdraft Protection Transfer Service is a great way to reduce fees and provide peace of mind when money is tight. For more tips on managing your money, visit our Online Learning Center.