Changes to Courtesy Pay
Effective May 1, 2015
We are pleased to announce that Courtesy Pay for checks, recurring debit card transactions and ACH debits will be increased to $500 for members with a Free Checking account and $700 for members with an Interest, Senior or Reward Checking account.
This increase in Courtesy Pay will also include everyday debit card transactions if you have opted into the Courtesy Pay Program.
Beginning May 1, 2015, the balance we use to assess overdraft fees will be your available balance. We will first deduct all transactions that have posted to your account, as well as pending transactions that we have authorized but have not yet posted to your account.
Pending transactions have been authorized but have not yet posted to your account. In some cases, the amount of the pending transaction may not match the actual amount of the transaction. Some merchants, including gas stations, restaurants, airlines, and hotels, will place an initial hold (known as an "authorization") on the account for a dollar amount that could be higher or lower than the transaction. This authorization is placed by the merchant to ensure that you have enough funds in your account and is removed once the transaction has either posted to your account or is cancelled. As you perform these transactions throughout the day, the amount of the pending transaction changes your available balance.
Can a Pending Transaction Result in Overdraft Fees?
A merchant's outstanding debit card authorization request will alter the available balance in your account. If, as a result, your available balance falls below zero, then overdraft fees will be charged for transactions that post to or clear your account. For example, those who spend the funds in their account, anticipating a delay between purchase and settlement, may experience an overdraft fee. This is because the outstanding debit card authorization reduces the available balance in the account even though the actual purchase has not posted yet.
Click here to learn more about our Courtesy Pay program.