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Understanding Overdrafts and Your Options

On occasion, circumstances occur that can cause you to overdraw your account. Overdrafts occur when the amount of a check or electronic item exceeds your Available Balance at the time it is presented to (i.e., received by) the credit union, or when a Visa Debit Card purchase exceeds your Available Balance at the time of your purchase. Your Available Balance reflects any deposit holds or Visa Debit Card holds for previous purchases that have not yet been presented; therefore, your Available Balance may be less than your Account Balance.

For checks and electronic withdraws (e.g., ACH), an overdraft occurs when the item exceeds your Available Balance when the item is presented for payment. For Visa Debit Card transactions, an overdraft occurs when the amount of the transaction exceeds your available balance at the time you make the purchase. For purposes of overdrafts, there is no float or settlement period for Visa Debit Card transactions.

At Metro Credit Union, you can select from one of several options to determine how those overdrafts will be treated. The information below is aimed at assisting you in understanding overdrafts and your overdraft coverage choices.

Overdraft Protection / Back-Up Account

If your checking account does not have sufficient funds to cover a transfer, purchase, or withdrawal, you can elect to automatically transfer funds from another account to prevent your checking account from becoming overdrawn. You may also choose to apply for an Overdraft Line-of-Credit that is linked to your checking account. There is a $2.50 fee for each automatic line of credit advance or account transfer. You can avoid this fee by transferring or advancing funds prior to the transaction that causes an overdraft/negative balance.

Lines of Credit, Home Equity Lines of Credit, Savings Accounts, Money Market Accounts and secondary checking accounts can all be linked to your checking account to prevent overdrafts. Generally, Metro Credit Union will advance funds from deposit accounts prior to advancing funds on a line of credit/HELOC.

Please call or stop by Metro Credit Union today if this service is right for you.

Note: Money Market accounts are subject to Regulation D’s monthly withdrawal limitations and fees may apply if the number of transfers exceeds those limits.

Courtesy Pay Service

Courtesy Pay adds a measure of protection to your checking account. It can temporarily cover purchases and payments when sufficient funds are not available in your account. Courtesy Pay is not a loan and your checking account must be brought to a positive balance within 35 days. There is no charge for this service unless until you actually use it.

Standard Courtesy Pay covers the following types of transactions:

  • Checks
  • ACH transactions (automatic debits from your checking account)
  • Bill Payer
  • Online Banking Bill Pay

Debit Card Courtesy Pay (Opt in required):

  • All transactions covered under Standard Courtesy Pay
  • Everyday Visa Debit Card transactions

Transactions not covered by Courtesy Pay:

  • ATM transactions
  • In-person teller transactions
  • Online banking transactions

How to Set-Up, Change or Cancel Your Overdraft/Courtesy Pay Selection

You may remove or change Courtesy Pay for VISA Debit Card purchases, or for all transactions on your checking account by calling our office at 402-551-3052 and asking to speak with a Courtesy Pay Department representative.

Avoid Overdrafts/Tips on Budgeting

  • Check your balance regularly. It is available on our website, any Metro Credit Union ATM, our Mobile Application and over the telephone via ARTIE or our member service Call Center.
  • Review your statement.
  • Do not rely on check clearing time. In today’s banking environment, there is not much time between when you write a check and when it clears your account.
  • Set up account alerts online or through the mobile application to receive updates about any of your Metro Credit Union accounts.
  • Stop by any Metro Credit Union location and a Financial Services Representative will be happy to assist you.

External Resources


Frequently Asked Questions

Or to learn more, contact one of Metro Credit Union's friendly Financial Service Representatives at: 402-551-3052.

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