What You Need to Know about Overdrafts and Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:
- Funds are transferred from a separate account such as a regular share account or checking account.
- Funds are transferred from a Line-of-Credit.
- Standard overdraft protection allows your account balance to go negative for a per-transaction fee.
This notice explains our standard overdraft practices.
What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account number
- Automatic bill payments
We do not authorize and pay overdrafts for the following types of transactions unless you ask us:
- ATM transactions
- Everyday debit card transactions
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.
If we do not authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged if FEDCom Credit Union pays my overdraft?
Under our standard overdraft practices:
- A $2.00 per transaction fee will apply for all overdraft transfers from a separate account to cover a transaction.
- A $25.00 per transaction fee will apply for all non-sufficient funds transactions in which standard overdraft protection applies.
- There is no limit on the total fees we can charge you for overdrawing your account.
What if I want FEDCom Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions complete this form and:
- Mail form to FEDCom Credit Union, 150 Ann St NW, Grand Rapids, MI 49505; or
- Drop the form off to either one of our credit union locations (150 Ann St NW or 2329 44th St SE); or
- Fax the form to 616.364.1167, Attention Sydney; or
- Provide a verbal authorization by calling (616) 364-7283 ext. 128
If you have any questions regarding the form please feel free to contact Member Services at 616.364.7283
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