Overdraft Protection Options

WHAT YOU NEED TO KNOW ABOUT OVERDRAFTS

Before you perform a transaction on your account always try to make sure you have sufficient funds available so as to avoid overdraft fees or, even worse, the much dreaded declined transaction!

Viriva Community Credit Union understands that life happens and unexpected overdrafts may occur from time to time which is why overdraft coverage can help. To protect yourself against the embarrassment and excess fees that may be associated with a declined purchase and/or returned check, here is what you need to know about Overdrafts and Overdraft Fees.

 

WHAT ARE MY OVERDRAFT OPTIONS?

SERVICE COST
Service Cost Overdraft Protection Link to Another Deposit Account you have at Viriva Community Credit Union*  $1.00 fee per transfer
Overdraft Protection Line of Credit**  $1.00 per transfer + interest
Overdraft Privilege (As a last resort to qualified members)  $25.00 overdraft fee per item

*CONTACT US or come by a branch to sign up or apply for these services. ** Subject to credit approval.


WHAT IS OVERDRAFT PROTECTION?

Overdraft Protection services apply to all types of transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from another account or line of credit you may have at Viriva Community Credit Union, for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.


WHAT IS OVERDRAFT PRIVILEGE?

Overdraft Privilege allows you to overdraw your Checking Account up to the disclosed limit for a fee in order to pay a transaction.

Viriva Community Credit Union may provide you a specific Overdraft Privilege limit depending on the type of account you have. You will receive a letter approximately 30 days after Checking Account opening, for consumer accounts, or after 60 days, for business accounts, informing you that Overdraft Privilege has been activated on your account. You do not have Overdraft Privilege until you receive this notification.

Even if you have overdraft protection, such as a transfer from another account, Overdraft Privilege is still available as secondary coverage if the other protection sources are exhausted.

Please be aware that the Overdraft Privilege amount is not included in your balance provided through online banking, telephone banking or Viriva Community Credit Union ATMs.


HOW MUCH DOES OVERDRAFT PRIVILEGE COST?

There is no fee for having Overdraft Privilege unless you use it. The Overdraft Fee of $25 will be imposed for overdrafts created by checks, ACH, point-of-sale, ATM withdrawals, in-person withdrawals, or by other electronic means. If multiple items would overdraw your account on the same day, each item would be assessed the appropriate fee. This is a lower fee than Viriva Community Credit Union charges for items returned to the payee due to insufficient funds.

All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of the assessment of a fee. The total negative balance, including all fees and charges, is due and payable upon demand. Depositor and each Authorized Signatory will continue to be liable, jointly and individually, for all such amounts, as described in the Deposit Account and Disclosure Agreement.


WHAT IF I DON’T WANT OVERDRAFT PRIVILEGE?

You can request to discontinue the Overdraft Privilege service in its entirety at any time by CONTACTING US. Without Overdraft Privilege, your insufficient funds items will be returned to the payee and/or declined at the point of purchase, unless you have Overdraft Protection available to cover the item(s). You will be charged the standard return fee of $27 for all returned items.


WHAT TYPES OF TRANSACTIONS DOES OVERDRAFT PRIVILEGE COVER?

The types of transactions covered by Overdraft Privilege depend on the coverage selected. See the chart below for more information.

TRANSACTIONS STANDARD COVERAGE
(No action required)
EXTENDED COVERAGE
(Your consent required*)
Checks X X
ACH – Auto Debits X X
Recurring Debit Card Payments X X
Online Bill Pay items X X
At the Teller Window X X
ATM Withdraws X*
Everyday Debit Card Transactions X*

NOTE: Business accounts automatically have access to Overdraft Privilege for ATM and everyday debit card transactions. (Extended Coverage).

If you choose Extended Coverage, all the transaction types listed in Standard Coverage are included, along with ATM withdrawals and everyday debit card transactions. Viriva Community Credit Union will not authorize overdrafts for everyday debit card and ATM transactions on consumer accounts unless you give us your consent to pay these overdrafts by electing Extended Coverage. Business accounts automatically have Extended Coverage.


WHAT IF I WANT VIRIVA COMMUNITY CREDIT UNION TO PAY MY ATM AND EVERYDAY DEBIT CARD OVERDRAFTS (EXTENDED COVERAGE)?

If you want us to authorize and pay overdrafts caused by ATM and everyday debit card transactions (Extended Coverage), tell us by CONTACTING US directly or complete a CONSENT FORM to have Extended Coverage on your account.


WHAT ELSE DO I NEED TO KNOW?

  • A link to another account or a line of credit is 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 MYMONEY.GOV.
  • The $25.00 Overdraft Privilege Fee is lower than the fee that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Privilege Fee or a Non-Sufficient Fund Fee of $30.00. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.
  • We generally post items in the following order: 1) ATM/Debit Pin-based transactions post real time, 2) Debit Signature based transactions – authorizations post real time, 3) ACH Posting for credits – in the order received, 4) Bill payer -in the order received, 5) ACH Posting for debits – in the order received, 6) Share Drafts – post from low to high by 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 however, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of overdraft or return fees assessed.
  • Although under payment system rules, Viriva Community Credit Union may be obligated to pay some unauthorized debit card transactions, Viriva Community Credit Union will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
  • Giving us your consent to pay every day debit card and ATM overdrafts on your consumer account may result in you incurring Overdraft Privilege Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Privilege Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in suspension of your debit card.
  • Please be aware that the Overdraft Privilege amount is not included in your balance provided through online banking, mobile banking or Viriva Community Credit Union’s ATMs.
  • Viriva Community Credit Union authorizes and pays transactions using the available balance in your account. Viriva Community Credit Union 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.  The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available overdraft protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available overdraft protection, but does NOT include the Overdraft Privilege For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for authorizing ATM and everyday debit card transactions. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit may be used to authorize and pay a transaction
  • Viriva Community Credit Union 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 Privilege Fee may be assessed.
  • Except as described in this letter, Viriva Community Credit Union will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).
  • Viriva Community Credit Union may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Overdraft Privilege limit (as described in this letter). Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Overdraft Privilege limit, is positive and then you contact us.
  • Viriva Community Credit Union may also suspend your debit card if your account is overdrawn more than thirty-two (32) consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
  • Viriva Community Credit Union may also suspend your debit card if we are unable to contact you 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 for purchases or to access your account at the ATM, and 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).
  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Overdraft Privilege may be discontinued 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 30 days for a minimum of one business day.
  • 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.


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