Protection When You Need It!
We all occasionally make mistakes. At Family First Credit Union we offer an Overdraft Protection Line of Credit to cover you in the event of an addition error. Overdraft Protection is a Line of Credit, deposited in increments of $100, as needed to a maximum of $600 to cover any checks that are presented for payment. You must qualify for this service.
Overdraft Privileges are also available to those who qualify.
Overdraft Protection |OOPS | ODP
An overdraft occurs when you do not have the available funds in your account to cover a transaction. As a service to the members that qualify, we can cover your overdrafts to help you avoid your transaction being declined or returned as unpaid. In order to take advantage of this service, if you qualify, you must sign an OPT IN form. There are two sides to our Overdraft Protection, Automated Clearing House (ACH) transactions, which are done when you give someone your checking account and routing number for a payment, and Point of Sale (POS) transactions, which occur when you use your debit card to process a payment. You must choose to either OPT in or out of BOTH sections individually.
Overdraft Privilege (ODP), for debit card transactions, and Occasional Overdraft Privilege Service (OOPS), for ACH transactions, is available at our discretion. This means we do not guarantee that we will always authorize and/or pay any type of transaction(s). If we do not authorize to pay the overdraft(s), your transaction(s) will be declined or returned as unpaid.
You can change your preferences at any time by submitting a new Authorization Form.
It is important to understand that there is a difference between what your Actual Account Balance is verses your Available Account Balance. With ODP and OOPS, all transactions are based on your Available Account Balance.
For example, if you have an Actual Balance of $100 but you have a debit card transaction pending for $20, the Available Balance that you can spend is $80. This is because someone has “claimed” the $20, so it is not available to be used for purchases or payments. However, your Actual Balance will still say $100 because the ATM/Debit Card transaction is still pending and has not officially posted. With an Available Balance of $80, if you then use your debit card or approve an ACH payment for a $100 transaction, your activity will activate your ODP/OOPS and you will be assessed an ODP/OOPS Fee.
Please note that by opting in to our ODP service, you will be charged an overdraft fee for EACH transaction that occurs when you do not have the Available funds to cover them at the time they are made. However, for this fee you will be saved the embarrassment and hassle of having your transaction declined or returned when you attempt to use your debit card or if you have an ACH transaction trying to clear your account. This could also potentially save you interest or late fees with whomever you are trying to pay, which you may have accrued if the transaction had been declined or returned.
**Please note that overdraft items will be posted in accordance with Family First Credit Union’s existing Overdraft Policy.**