Frequently Asked Questions | Overdraft Protection/Courtesy Pay

What is Courtesy Pay?

Courtesy Pay is a service that adds a measure of protection to your checking account. Courtesy Pay may cover your insufficient funds items based upon your available account balance, up to your approved limit, for one $35 fee per covered overdraft transaction.

That means, instead of returning a check to the merchant because of insufficient funds, the credit union may pay your item which will save you additional charges from the merchant collection companies.

How does Courtesy Pay work?

When a check or ACH withdrawal is presented for payment against your People First checking account, it may be paid using:

  • The funds in the account
  • Through the available balance in your Line of Credit (if applicable)
  • Overdraft Protection from a savings account (if applicable)
  • Through Courtesy Pay, up to a limit of $500

Once the first three options have been expended and Courtesy Pay is used to pay a check or ACH withdrawal, a fee of $35 will be assessed to your account for each item that draws your account negative based upon your available account balance. You then have up to 30 days to bring the account current, either through a direct deposit, transfer of funds, or a deposit at one of our branches.

This is the same fee that would have been incurred if the check or ACH withdrawal were returned for insufficient funds. But with Courtesy Pay, you will avoid the extra charges merchants would add to a returned check or ACH withdrawal.

Courtesy Pay is offered as a privilege and People First reserves the right to return check or ACH requests when available sufficient funds are not available in your account.

What if I already have overdraft protection?

If you have established other overdraft protection methods, such as a line of credit or automatic transfer from your other accounts, we will always look to pay any overdraft by those other methods first before paying your overdraft utilizing Courtesy Pay and imposing a $35 fee for each overdraft we pay.

Do I have to apply for Courtesy Pay?

No. We require no applications or additional signatures. As long as you are 18 years of age or older and a member in good standing, which includes having an account with us for at least 90 days, you make regular deposits to that account, bring your account back to a positive balance regularly, loans with us are not more than 30 days delinquent, your account has a current mailing address, and there are no legal orders against the account, your Courtesy Pay privilege remains activated.

What is Regulation D?

The Federal Reserve Bank's Regulation D limits the number of transactions you can make from your savings accounts each month. Savings accounts include regular Savings (S1), Holiday (S2), Vacation (S3), Special (S6) and Money Market (S7) accounts.

Each member account is allowed a total of six (6) Reg D transactions per month.

Transactions effected by Reg D:

  • Overdraft Protection (except for transfers from a Signature Line of Credit)
  • Transfers made from your savings account by Tellerphone or PC Access
  • ACH debits from your savings account
  • Employee Assisted Transfers over the telephone
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