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Overdraft FAQs

What is the difference between SRP Federal Credit Union's Overdraft Protection and Overdraft Privilege programs?

Our Overdraft Protection service transfers funds from previously designated shares and/or a Platinum Line of Credit to pay an item that overdraws the checking share on which it is drawn. Overdraft Protection will not allow the share to go into a negative balance. A fee is assessed with each transfer triggered.

Overdraft Privilege is a non-contractual service offered by SRP FCU to eligible owners/joint owners. Using an established overdraft limit, this service pays items which would otherwise be returned. There is a fee assessed for each item paid.

Note: The Credit Union has no obligation to pay an item under Overdraft Privilege. It is a courtesy service which we may extend or revoke at our discretion. In contrast, Overdraft Protection is a contractual arrangement under which we are obligated to meet the commitments addressed in our agreements.

How do I apply?

No application is required for Overdraft Privilege. We may approve your overdraft items within your current available Overdraft Privilege limit as a non-contractual courtesy. Eligibility is at the sole discretion of the Credit Union and is based on you managing your checking account in a responsible manner. Your Overdraft Privilege service may be suspended or permanently removed at our discretion. Our reasons may include but are not limited to:

- You have an account that has been open less than 30 days.
- You do not bring your account to a positive end-of-day balance within 30 days of becoming overdrawn (including the payment of all Credit Union fees and charges).
- Your account type is not eligible.
- You are past due on any Credit Union loan or delinquent on any other obligation to the Credit Union.
- You are subject to any legal or administrative orders or levies; liens against your account; or you are currently a party in a bankruptcy proceeding.
- The primary account owner is under 18 years old.
- Your account is classified as inactive.
- You have an unresolved prior loss with the Credit Union.
- We believe you are managing your account in an irresponsible manner which may harm you or us.

Overdraft Protection can be set up at your request. Overdraft Protection associated with a Platinum Line of Credit requires an application and is subject to approval. With Overdraft Protection, you can let us know from which account(s) and in what order of use you would like transfers to be made. Call or visit any branch location to speak with a Member Service Representative.

How will I know if I have Overdraft Privilege on my checking share?

Overdraft Privilege may be automatically granted to checking accountholders 30 days after the account is opened. The first time the service is accessed you will receive a letter. Our standard practices that come with any regular checking account can be used to cover your checks and other transactions made using your checking account number; individually authorized and recurring ACH transactions; SRP Online, SRP Mobile, and telephone transfers; POP money transfers; and online bill payments. If you do not want to have our standard overdraft practices using Overdraft Privilege cover the transaction types listed above, visit one of our branches, contact us at 1-800-237-9829, or send us a secure message through SRP Online to remove this benefit from your account.

What does Overdraft Privilege cost?

There is no additional cost associated with this privilege until we pay an item that is drawn against insufficient funds. Then, an Overdraft Privilege Fee is assessed. The fee can be as low as $2.00 and as high as $35.00 per item*.

Please note that Overdraft Protection is different. With Overdraft Protection, a transfer fee of $2.00 will be assessed when your checking account requires a funds transfer from a designated account to cover an item.

If you have both Overdraft Protection and Overdraft Privilege, we will exhaust your Overdraft Protection options before resorting to Overdraft Privilege to cover an overdraft item.

*Each Overdraft Privilege Fee is assessed on the amount of the negative available balance change after the item is posted. If the negative available balance change is:

Less than/equal to $4.99 - $2.00 /paid item
Between $5.00 and $9.99 - $10.00 /paid item
Between $10.00 and $19.99 - $20.00 /paid item
Between $20.00 and $29.99 - $30.00 /paid item
Greater than/equal to $30.00 - $35.00 /paid item

How far overdrawn can my checking share go under the Overdraft Privilege program?

With Overdraft Privilege, we will generally pay your overdraft items when paying them would not cause your available balance to go more than $500.00 into the negative. We then assess the applicable fees even if that takes your account more than $500.00 negative. However, payment of your overdraft items is at our discretion and we reserve the right not to pay even though we may have previously paid overdrafts for you. For example, we typically do not pay overdrafts if your account is not in good standing, if you are not making regular deposits, or if you use the service irresponsibly.

We will never encourage you to test the limit of your Overdraft Privilege service. It is a safety net intended to protect you from the problems associated with overdrafts. It is not intended as an alternative to proper management of your accounts.

What if I go beyond my Overdraft Privilege limit?

Overdrafts above and beyond your established Overdraft Privilege limit may result in checks or other items being returned. A Non-sufficient Funds Fee of $35.00 will be charged per item. The scenarios below demonstrate how fees can impact your balance and the payment or return of subsequent items.

Scenario A: Your balance is $100.00 and your available balance is also $100.00. A check is presented against your account for $600.00 requiring we allow your available balance to go $500.00 into the negative. We would generally pay the check using Overdraft Privilege and assess the fee. If the fee were $35.00, then your balance would then be -$535.00.

Scenario B: Your balance is $100.00 and your available balance is also $100.00. A check is presented against your account for $300.00 requiring we allow your available balance to go $200.00 into the negative. We would generally pay the check using Overdraft Privilege and assess the fee. In this example, if the fee were $35.00 your balance is then -$235.00 and your available balance is -$235.00. Based on our normal $500.00 limit, that leaves you $265.00 to cover your items. If another check is presented for $300.00 we would generally not pay it as you were left with only $265.00 to cover your items. If we return the $300.00 check unpaid we would normally assess a $35.00 returned check fee and that would lower your account balance to -$270.00. Your Overdraft Limit does not limit your returned check fees.

What are some of the ways I can access my Overdraft Privilege limit?

Your Overdraft Privilege limit may be available for checks and other transactions made using your checking account number, automatic bill payments and recurring ACH transactions. Also, at your request*, we may authorize and pay ATM transactions and everyday debit card purchases using your limit.

*Overdraft Privilege will be made available for ATM and everyday debit card transactions only upon your request. Call 1-800-237-9829 or 803-278-4851 and select the Member Services option, or visit any SRP Federal Credit Union branch to arrange for your ATM and debit card coverage. Each item covered is assessed a fee. You may revoke your authorization at any time by contacting us either in person, by mail, or by phone.

What transactions will trigger the Overdraft Privilege service?

If you overdraw your checking share, Overdraft Privilege will cover checks and other transactions using your checking account number; individually authorized and recurring ACH transactions; SRP Online, SRP Mobile, and telephone transfers; POP money transfers; and online bill payments. Upon your authorization, Overdraft Privilege will also cover your ATM transactions and everyday debit card transactions. Each item covered is assessed a fee.

Funds availability rules apply and funds deposited on a real time basis may not be made available immediately. For example, checks you deposit may be subject to uncollected funds holds. See our funds availability disclosures and shared branching rules for details.

What is the difference between my Balance and my Available Balance?

Your Balance is the total amount of funds in your account. It reflects transactions that have posted to your account, but not transactions that have been authorized and are pending. Any purchases, holds, fees, other charges, or deposits made on your account that have not yet posted will not appear in your Balance. While it seems that your Balance is the amount you have to spend, this is not always the case. For example, your Balance is $50.00 but you just wrote a check to your hairdresser for $25.00. Since your account is not going to reflect the check until it clears, your Balance remains at $50.00.

Your Available Balance is your Balance less any outstanding holds or debits that have not yet posted to your account. We use your Available Balance when determining whether a transaction will cause your account to overdraw and for charging any related fees. You should take care only to make transactions against your Available Balance as these are the funds you may access for transactions. To obtain your balance information, you may check your account(s) online at SRP Online, on your access device using SRP Mobile, by calling TYME Line, or by visiting an SRP FCU ATM or branch location.

Is my Overdraft Privilege limit shown in my balance?

No. Your Overdraft Privilege amount is never reflected in your balance.

How do merchant authorizations impact my Available Balance?

Merchant authorizations reduce your Available Balance. We post debit card authorizations and settlements from merchants as we receive them and we cannot control when we receive them. Some merchants may submit authorizations for more than the settlement amounts. For example, your local car rental agency may disclose to you they submit authorizations for $500.00 before approving you to leave with the rental car. If your rental expense is only $185.00 they only send a settlement for $185.00. But the $500.00 authorization reduces your Available Balance by that amount until we receive the corresponding settlement transaction. The most common transactions that generate authorizations for amounts which differ from settlement amounts are travel and entertainment transactions such as renting cars and holding hotel rooms. Generally, retail stores know the exact amount of their transactions when they first initiate your card transaction and send us authorizations and settlements for the same amount. You choose the merchants you do business with and if the car rental companies, hotels, and other merchants you use do not disclose their authorization policies or have unfavorable policies you may want to consider not using your SRP Federal Credit Union debit card with them.

In what order are transactions posted to my account, and what impact does this have on fees?

The order in which items are presented may affect the fees assessed to your account. The following transactions are posted real time or very near real time to when you conduct them:

- Transactions conducted at teller counters such as deposits*, withdrawals, and cashing on-us checks
- Transactions conducted at shared branching locations*
- ATM deposits* and withdrawals
- Debit card purchases conducted with a PIN
- Authorizations (holds) for debit card purchases conducted using the VISA network**
- Transfers conducted using our automated phone system (TYME Line)
- Transfers conducted using our SRP Online, SRP Mobile, or in some instances Bill Pay

* Funds availability rules apply. Funds deposited on a real time basis may not be made available immediately. For example, checks you deposit may be subject to applicable holds. See our funds availability disclosures and shared branching rules for details.
** The corresponding settlements may lag hours or days based on when the merchants submit them. We post settlement transactions at the time we receive them.

For Automated Clearing House (ACH) entries and checks which are received in batch files, SRP Federal Credit Union posts in the following manner:

- Checks, ACH payments and ACH deposits
- ACH debits are posted by amount from low to high. Posting in this manner allows for the most items to be paid and helps to minimize fees assessed to your account(s).
- Checks are posted by amount from low to high. Posting in this manner allows for the most items to be paid and helps to minimize fees assesses to your account(s).

We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, please be aware that the order of item payment may create multiple overdraft items during a single banking day for which you will be charged an Overdraft Privilege Fee of up to $35.00 for each overdraft item paid. Consider the following scenarios:

Scenario A: Your balance is $100.00 and your available balance is also $100.00. You make an ATM withdrawal for $200.00. If we process your withdrawal using your Overdraft Privilege limit you will be assessed a fee based on the negative available balance change.

Your available balance can differ from your balance and an overdraft can occur even when you have a positive balance. For example:

Scenario B: Your balance is $100.00 and your available balance is also $100.00. You make a purchase with your debit card at a merchant who submits an authorization of $35.00. When we approve the authorization we commit to pay the merchant and reduce your available balance to $65.00. As the merchant transaction has not settled yet your balance remains at $100.00. Next you request an $80.00 withdrawal at an ATM. You do not have sufficient available funds for the ATM transaction and if we honor your request using Overdraft Privilege we will assess a fee based on the negative available balance change. The fee is based on your having only $65.00 available and is not based on your account balance of $100.00.

Next, the merchant submits the settlement transaction for $35.00. You do not have a sufficient available balance to cover this transaction. If we pay the $35.00 using your Overdraft Privilege you will be assessed a fee based on the negative available balance change. In this scenario you drew on unavailable funds twice using Overdraft Privilege and incurred two fees.

If we change Scenario B slightly, the outcome is different:

Scenario C: If the merchant submits the $35.00 settlement transaction before you conduct the $80.00 ATM transaction, your $35.00 purchase does not trigger your Overdraft Privilege service or a fee. After your purchase your balance and available balance are $65.00. Next, you request an $80.00 ATM withdrawal against an available balance of $65.00 which requires drawing on funds which are not available. If we process your withdrawal using your Overdraft Privilege you will be assessed a fee based on the negative available balance change. In this scenario you drew on unavailable funds once using Overdraft Privilege and incurred one fee.

The difference between Scenario B and Scenario C was how quickly the merchant submitted the $35.00 settlement transaction. SRP Federal Credit Union cannot control this. We process merchant authorizations and settlement transactions as we receive them. PIN-based transactions post to your account without the timing delays often associated with signature-based transactions.

There is daily maximum of $160.00 in total Overdraft Privilege Fees that may be imposed on your account.


Is Overdraft Privilege a loan?

The Overdraft Privilege service is not a loan and is not subject to interest charges or late fees; however, items paid are subject to fees. The Credit Union - or you - may discontinue the service at any time, which will not affect any obligations to pay for any funds advanced or fees incurred prior to termination.

Can I use Overdraft Privilege to make my SRP Federal Credit Union loan payment?

No, you cannot use Overdraft Privilege to bring another account to a positive balance.

When do I have to repay the overdraft?

You must bring your account to a positive end-of-day balance at least every 30 calendar days (including the payment all of Credit Union fees and charges) of the overdraft. Failure to do so will result in account termination, our possible exercise of right to offset without prior notice, collection actions and negative credit reporting. Please contact us immediately if you are unable to pay your balance in full within the required timeframe. If we pay an overdraft on an account with more than one (1) owner, each owner is jointly and severally liable for such overdrafts and/or fees. The Credit Union reserves the right to apply any other or later deposits, including direct deposits, to pay your overdrafts or overdraft fees.

What if I do not want Overdraft Privilege?

You may never need to take advantage of Overdraft Privilege but you may find it useful in the event of a temporary financial shortfall. If you do not want to have our standard overdraft practices that come with Overdraft Privilege, visit one of our branches, contact us at 1-800-237-9829, or send us a secure message through SRP Online to remove this benefit from your account. There is no fee to Opt In or Opt Out. If you Opt Out you are instructing us to return any overdraft items unpaid. The Credit Union will charge a Non-Sufficient Funds (NSF) Fee of $35.00 for items which are returned, and if those items are presented more than once the Credit Union will charge a fee each time an item is returned. We do not charge a NSF Fee for certain declined transactions including internet banking and telephone transfers, POP money transfers, and ATM and debit card transactions. Members who receive Social Security, federal direct deposit, or any other entitlement benefit must Opt Out if they do not want the Credit Union to apply those funds to pay an overdraft. You may Opt Out of Overdraft Privilege at any time, but you are responsible for any overdrawn balances at the time of opting out.

Can Overdraft Privilege be taken away?

Yes. Your Overdraft Privilege service may be suspended or permanently removed at our discretion. Our reasons may include but are not limited to:

- You have an account that has been open less than 30 days.
- You do not bring your account to a positive end-of-day balance within 30 days of becoming overdrawn (including the payment of all Credit Union fees and charges).
- Your account type is not eligible.
- You are past due on any Credit Union loan or delinquent on any other obligation to the Credit Union.
- You are subject to any legal or administrative orders or levies; liens against your account; or you are currently a party in a bankruptcy proceeding.
- The primary account owner is under 18 years old.
- Your account is classified as inactive.
- You have an unresolved prior loss with the Credit Union.
- We believe you are managing your account in an irresponsible manner which may harm you or us.

How can I minimize fees?

Overdraft Privilege is intended to provide protection to ensure your items are paid if you have a temporary financial shortfall or make an error such as forgetting to properly record a transaction in your account register. The best way to minimize overdraft fees is to monitor your account balances and ensure you have sufficient funds at all times. You will want to know about the tools we offer to help you monitor your account, because a financial shortfall may cause a number of items to be covered each with a fee.

- SRP Online - whether you use a desktop or tablet you can see your recent transactions and available balance.
- SRP Mobile - download our mobile app, SRP Mobile, to check your available account balance and recently posted transactions. You can also set customizable alerts to alert you when you balance dips below a certain amount.
- TYME Line - you can call our 24-hour automated telephone response system to check your available balance and recent transactions.

Of course the best method is to keep an accurate account register. Our online, mobile, and telephone banking systems may not know all your transactions. For example, our systems will not know if you have written a check that has not cleared yet. As another example, you may have used your Credit Union debit card at a merchant and the merchant transaction has not cleared yet.

I thought I had Overdraft Privilege. Why did you return my check as NSF?

Items are returned NSF when your available Overdraft Privilege limit has been exhausted or is revoked by us. A Non-sufficient Funds Fee of $35.00 will be assessed per item.

What if I have more questions?

If you have further questions about our Overdraft Services, please contact us during regular business hours at 1-800-237-9829 or 803-278-4851 and select the Member Services option or stop by any of our branch locations. You may also send us a secure message through SRP Online.