An overdraft occurs when money is withdrawn or transactions (checks, debit card purchases, electronic funds transfer, etc.) are paid from a checking account and the available balance goes below zero.
An overdraft is different than a returned item. A returned item (e.g., bounced check) occurs when a check or another instrument is returned to the sender’s financial institution because the available balance in your checking account is less than the amount of the item.
Courtesy Pay limits will be determined and assigned by Credit Union management, and limits may be changed or increased by management without notice. Generally, the following overdraft limits, not including Courtesy Pay fees assessed, will be initially assigned as follows:
Checking without Direct Deposit:
Up to $400
Checking with Direct Deposit:
Up to $600
Your specific Courtesy Pay limit is available anytime by using our online banking system or calling member services at (402) 551-3052 and asking to speak with a member of the courtesy pay team.
Our Courtesy Pay fee is $28 per item.
Our Returned Item /NSF Fee is $28 per item.
A simple explanation as to when Courtesy Pay Fees are assessed would be:
1. When you write a check or execute an electronic funds transfer (EFT), a fee is assessed if the amount of the check or EFT overdraws your available balance at the time the check or EFT is presented to Metro for payment, or,
2. If you use your Debit Card, a fee will be assessed if the amount of the transaction exceeds your Available Balance at the time the transaction is performed and/or authorized.
Your Account Balance is the amount of the funds in the account at a point in time based on the transactions that have posted to the account as of that time. Your Available Balance is the amount of funds in the account that are available to pay items presented against the account without incurring an overdraft or non-sufficient funds fee or transferring funds from another account. The Available Balance is generally equal to the Account Balance, less the amount of any holds placed on the recent deposit, holds placed for other reasons, and holds for pending transactions (such as Debit Card purchases) that we have authorized for payment but that have not yet posted to your account. If a transaction presented for payment against your account exceeds the Available Balance, we will treat it as presented against non-sufficient funds even if the Account Balance exceeds the amount of the item.
If your actual balance and available balance are both $100 and you swipe your Visa Debit Card at a grocery store for $50, a hold is placed on your account and your available balance will be reduced to $50. Your actual balance is still $100 because the transaction has not yet posted to your account. If a $75 check clears your checking account before the restaurant charge is sent for processing, you will incur a Courtesy Pay Fee, because your available balance was $50 when the $75 check was paid. In this instance, we may pay the $75 check and charge you a Courtesy Pay Fee. The fee will also be deducted from your account, further reducing your available balance.
Your available balance reflects any preauthorization/deposit/check holds, etc. and is used to determine available funds for future transactions on your account. If funds are not sufficient in the available balance at the time a transaction clears, a Courtesy Pay or NSF fee is charged for each transaction that attempts to post.
The balance we use internally as transactions clear is called your account balance and includes all items that have cleared the account up to that point. This current balance does not include outstanding (i.e., non-cleared) debit card purchases, checks, or automatic drafts (ACH).
If there are not sufficient funds in the available balance at the time of new debit card authorizations, the transactions may be declined. If you have opted-in for Overdraft Privilege coverage on everyday debit card transactions, your transactions may still be authorized for a fee.
- Written checks which have not cleared
- Automatic bill payments that have been scheduled, but not sent.
- Debit Card Transactions where the authorized hold has been released and the transaction has not been submitted by the merchant.
When you use your Visa Debit Card to conduct a “Signature or Credit” transaction (i.e., non-PIN), the merchant sends us the amount, usually the total, for authorization. This amount is placed on hold and removed from your available balance immediately. The hold is released when the transaction clears or after about 72 hours, whichever comes first.
Note: Debit card authorization holds do not apply to PIN based transactions. Those transactions reduce your available and account balance equally at the moment the transaction is processed.
A debit card authorization hold may cause an overdraft if you do not have the required available balance to cover both the hold and any transactions, including checks, subtracted from your account.
No, the payment of transactions into overdraft status is discretionary. We reserve the right to refuse payment on any transaction. For example, we may not pay overdrafts if you do not regularly make deposits into your checking account.