What is Courtesy Pay?
Courtesy Pay is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit of $400.
The Courtesy Pay limit may be available for checks and other transactions made using your checking account number, such as an automatic (ACH) payment transaction, automatic bill payment or recurring debit card payment. If you request us to do so (opt in), we may authorize ATM withdrawals and everyday debit card purchases using your available balance and your Courtesy Pay limit.
How does Courtesy Pay work?
There are several ways your account can become overdrawn, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you (i.e. debit card at point of sale); (3) the return of unpaid items deposited by you; (4) credit union service charges; or (5) the deposit of items which, according to the credit union's Funds Availability Policy, are treated as not yet available.
As long as you maintain your account in "good standing," we may approve your overdraft items within your unused Courtesy Pay limit as a non-contractual courtesy.
For Courtesy Pay consideration, your account is in "good standing" if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all credit union fees and charges); (2) avoid excessive overdrafts; and (3) have no legal orders, levies or liens against your account; (4) are current on all obligations/loans with ARC Federal Credit Union. In addition, the Courtesy Pay service may only be available for eligible accounts that have been open for at least thirty (30) days and thereafter you maintain your account in good standing.
What does Courtesy Pay cost?
There is no additional cost associated with Courtesy Pay unless you use it. If you do use the Courtesy Pay limit, you will be charged our Courtesy Pay fee of $25.00 for each overdrawn item created by checks and other transactions made using your checking account number.
If you request to do so (opt in), we may authorize ATM withdrawals and everyday debit card purchases by using your available balance and your Courtesy Pay limit. Your balance at the time these transactions post will determine the overdraft status. Other transaction initiated by you, or a delay in processing authorized transactions by the merchant, may result in previously authorized transactions posting against an insufficient balance. It is our policy not to charge for transactions that are approved on a positive balance but settle on a negative balance. A Courtesy Pay fee of $25.00 will be charged for each ATM or everyday debit card transaction that is authorized on a negative balance and posts against insufficient funds. Once opted in, you may revoke your authorization at any time by contacting us at 814-946-0857 opt 3.
How quickly must I repay Courtesy Pay?
You should make every attempt to bring your account to a positive end-of-day balance as soon as possible and must do so within 30 calendar days. If you are not able to do so, you will receive a letter from ARC Federal Credit Union informing you that your Courtesy Pay limit has been suspended and additional items will be returned. Unless we advise you differently or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.
What if I am having trouble repaying Courtesy Pay or using it frequently?
Please contact us at 814-946-0857 if you (1) do not believe you will be able to bring your account to a positive end-of-day balance within the required time period; (2) find that you are using Courtesy Pay more often than you intended; or (3) don't understand why your account becomes overdrawn. We would like to discuss your situation with you.
We may refuse to pay an overdraft at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft items if your account is not in good standing as defined above, or, if based upon our review of your account management, we determine you are using Courtesy Pay excessively.
What if I do not want to have Courtesy Pay on my account?
If you would like to revoke your previous authorization for ATM and debit card transaction coverage, or have this service removed entirely from your account, please call 814-946-0857 opt 3.
View Courtesy Pay Brochure View Accountholder Policy
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