Courtesy Pay

An overdraft occurs when your available balance in your share draft (checking) account is not enough to cover a transaction. Unless, you tell us you want Courtesy Pay (Overdraft) Coverage, we will not pay overdrafts for certain transactions such as everyday debit card purchases and ATM withdrawals whether these transaction types occur at a store, online or by telephone. Certain transaction types such as payment via check may be covered. Covering an overdraft can occur in two ways:

• Courtesy Pay coverage that is available after 60 days* upon the opening of a share draft (checking) account type.
  • ​You must opt into Courtesy Pay coverage for everyday debit card, POS, and ATM withdrawal transaction
  • You are not required to opt in for Courtesy Pay coverage for checks, ACH, and Bill Pay transactions. 
• Overdraft Protection services, which are different than Courtesy Pay coverage, may be an available, less expensive option. Overdraft Protection services include linking your share draft (checking) account to another account with SMCU such as a money market or savings account or a line of credit source such as a credit card.

Your “Actual Balance” or “Current Balance” is the amount of money in your account at the start of any day. This amount does not include any pending transactions such as a deposit, point-of-sale (POS), Automated Clearing House (ACH), check or debit withdrawal transaction.

Your “Available Balance” is the current balance minus any pending Debit Card purchases, automatic drafts (ACH), processing checks or other debits to your account.  Available Balance is the amount available to you to make withdrawals or make payments.  We determine whether your account has a positive balance or (available funds), or if it is overdrawn, or if a transaction will overdraw the account.  It is important for you to keep track of your Available Balance, and any pending Merchant Authorizations (See the section titled Available Balance and Merchant Authorization Holds) before you conduct a transaction such as writing a check, or using your debit card. Understanding your Available Balance helps you know whether or not a transaction will overdraw your account. Available Balance is shown in online banking, mobile banking and displayed when you transact using an ATM. 

We will charge you a fee each time we pay an overdraft resulting from a check or ACH, and we will return it to the Payee who may charge an additional fee (See the section titled When Are NSF Fees And Courtesy Pay Fees Charged). Any debit card or ATM transactions that may make your account negative or require an overdraft due to insufficient funds, may be declined.

It is important to note that there can be a difference between your Actual Balance/Current Balance and your Available Balance as shown in the examples below.

Online Banking

Mobile Banking

For debit card and ATM transactions, your Available Balance is utilized at the time a transaction posts in order to determine when your account is overdrawn and whether fees will be charged.  For debit card transactions involving merchant authorization holds, such as securing a hotel room or purchasing fuel at a gas station, a longer delay may occur between an authorization hold being applied and the transaction posting. In such cases a debit transaction could delay posting and not be reflected in your Available Balance, at any point in time.  As a result, an overdraft or an insufficient Available Balance may occur when conducting another transaction (debit card, ATM withdrawal).  This is true even if your Available Balance shows you have enough funds to withdraw from your account.  It is very important for you to understand and record what you have purchased, authorized and the potential for that transaction to be pending as these items may not be reflected in your Available Balance.
 
Example:  You have an Available Balance of $100 that shows on an ATM machine.  However, twenty minutes ago you purchased fuel at a gas station where a merchant authorization hold of $80 was placed and is not yet reflected in your Available Balance. If you withdraw $100 at the ATM, the $80 merchant authorization hold can subsequently post and cause your account to go into overdraft of $80 and you will be charged a $30 Courtesy Pay fee.
 

¹Courtesy Pay coverage on debit card/POS and ATM transactions occurs in conjunction with checks, ACH or Bill Pay transaction coverage. There is no option to have only Courtesy Pay coverage on debit card, point-of-sale (POS) and ATM withdrawal transactions and no coverage on the paying of checks, ACH and Bill Pay transactions. However, you can have Courtesy Pay coverage ONLY on checks, ACH or Bill Pay transactions and not on the paying of everyday debit card, point-of-sale (POS) and ATM transactions.
²No more than five (5) Courtesy Pay fees ($150.00 total) may be charged per day.

Opting into Courtesy Pay for debit card, point-of-sale (POS), and ATM withdrawal transactions can be done as follows:

• At the time of opening* a new share draft (checking) account type
• By calling the Contact Center at (650) 363-1725 during the business hours of Monday through Friday, 8:00 am – 6:00 pm or Saturday, 9:00 am – 3:00 pm
• By visiting one of our branch locations and speaking with a branch representative

You may elect to not have any of SMCU’s Overdraft options such as Courtesy Pay. If you elect to not opt intoCourtesy Pay for everyday debit card or point-of-sale (POS) or ATM withdrawals and/or elect to opt out of having any Courtesy Pay options and your account does not have sufficient funds to cover a transaction, check or ACH payment, you will be charged a non-sufficient funds (NSF) fee of $30 AND your check or ACH payment is subject to being returned unpaid to the person, merchant or financial institution (Payee). The Payee may also charge you for a returned item fee. You can avoid being charged an NSF fee by ensuring your purchase transactions, checks written against your account or any withdrawal transactions that post to your account are less than or equal to your Available Balance.

If you would like to elect to not have any Courtesy Pay overdraft options and/or Overdraft Protection coverage please do one of the following:

• Inform the branch representative at the time of opening* a share draft (checking) account type
• Call the Contact Center at (650) 363-1725 during the business hours of Monday through Friday, 8:00 am – 6:00 pm or Saturday, 9:00 am – 3:00 pm
• Visit a branch location and speak with a branch representative

OCourtesy Pay Fee
After you become eligible* and after you opt into Courtesy Pay as an overdraft option for payment coverage on everyday debit card or point-of-sale (POS) and ATM withdrawal transactions, a Courtesy Pay fee will be charged at $30 per item paid  when any everyday debit or point-of-sale (POS) or ATM withdrawal transaction posts to your account for an amount greater than your Available Balance. There is a cap of (5) five overdraft transactions per day and maximum fee of $150.00 per day ($30 per occurrence) that SMCU charges for overdrawing your account.

Also note that Courtesy Pay on a check(s), ACH or Bill Pay transaction(s) incur a $30 fee per item posting to your account for any amount greater than your Available Balance.

NSF Fee
If you choose to not opt into Courtesy Pay on everyday debit card or point-of-sale (POS) and ATM withdrawal transactions, you will be charged a non-sufficient funds (NSF) fee of $30 each time any everyday debit or point-of-sale (POS) or ATM withdrawal transaction attempts to post to your account when the amount is greater than your Available Balance. In addition, any check(s), ACH or Bill Pay transaction(s) that attempt to post to your account when the amount is greater than your Available Balance incur a $30 fee per item attempt. Items may be presented multiple times, incurring a NSF fee of $30 each time. The Payee may also charge you for a returned item fee. When unable to cover the transaction at the time of presentment your check(s), ACH or bill payment will be returned unpaid to the person, merchant or financial institution (Payee).

You can avoid being charged an NSF fee by ensuring your purchase(s), checks written against your account or any withdrawal transactions that post to your account are less than or equal to your Available Balance. Unlike Courtesy Pay fees there is no cap on the per presentment NSF charges for overdrawing your account.

Overdraft Protection Services
Overdraft Protection services, which are different than Courtesy Pay, may be an available, less expensive option. Overdraft Protection services include linking your share draft (checking) account to another account with SMCU such as a money market or savings account or a line of credit source such as a credit card. No fee is incurred when covering an overdraft using this service so long as there are available funds to cover the transaction from the linked account.