Running a business can be hectic. It’s easy enough to make a mistake or miscalculation and before you realize it, you have insufficient funds in your account to cover your remaining transactions. That's why it’s important to arrange for overdraft protection for your checking account to keep items from being returned.
How to Avoid Overdrafts
Even with overdraft options in place, overdraft fees may still occur. The best way to reduce or even eliminate overdraft fees altogether is to avoid overdrawing your checking account. Monitoring is the key to keeping your checking account balance in check and overdrafts non-existent.
Keep Track of Your Available Balance
Your available account balance is the amount you can use without incurring an overdraft (and possible fee). The balance shown may not always reflect what’s actually available for withdrawal. Pending transactions, e.g., deposits on hold, debit card purchases not yet posted to your account, and checks not yet cleared all factor into your available balance. To determine how much is available; subtract all pending and outstanding items from the balance shown on your account. The remainder is what is available. View the “Your Checking Account Balance” section of our
Overdraft Notice for further explanation.
Balance Your Account
A check register makes keeping track of ATM withdrawals, purchases, etc., easier. If you need help balancing your account, use our checkbook balancing tool.
Use Account Monitoring Services
Take advantage of HVCU’s many free account monitoring options to keep daily tabs on your account balance and activity, including
Business Internet Banking and Business Mobile Banking.
Additional Information About Overdraft Coverage
Please refer to our
Overdraft Notice for additional information about the circumstances when we pay overdrafts from your checking account and charge you a fee.
If you do not have sufficient funds available in your business checking account to cover items, they may be paid pursuant to HVCU’s Business Privilege Pay or Overdraft Protection program.
Business Privilege Pay covers the overdrafts for eligible business accounts
1 for up to one business checking account. It is a courtesy service covering expenses that can’t be paid when you unintentionally do not have enough funds in either your checking account or other overdraft protection sources.
2
After 60 days of membership, you will be automatically enrolled into our complimentary Privilege Pay program for your primary business checking account. In the event that funds are exhausted from your checking and your assigned overdraft sources, Privilege Pay provides peace of mind by paying overdrafts for checks, Visa Debit Card transactions, automatic bill payments, and other transactions made using your checking account number up to $1,500 in total items, including any fees. Please note that debit cards for authorized users will also be opted in for this service. You have the option to opt-out of this service at any time by calling us at 845.463.3011, visiting any of our
branches, emailing us on our
secure form, or mailing your request.
Business Overdraft Options
Overdraft Protection
Optional service to enroll a business savings account3,
or Overdraft Line of Credit as backup to your
business checking account.
What’s covered?
Checks, ACH debits, and debit card transactions.
Costs:
Free from a Business Line of Credit or $5.00 from a savings account. |
Business Privilege Pay
Automatic discretionary overdraft service that covers
your transactions in the event that your overdraft sources unintentionally have insufficient funds; up to $1,500.
What’s covered?
Checks, ACH debits, and debit card transactions.
Costs:
$40 per item. |
How to Avoid Fees
- Balance your accounts - Overdrafts often occur due to automatic withdrawals or debit card purchases that haven’t been immediately reconciled. Accounting software like Quicken or Quickbooks can help track withdrawals, providing ample time to adjust spending accordingly.
- Use account monitoring services - Take advantage of Business Internet Banking and/or our Business Mobile Banking app to check your account activity regularly. You can also sign up to receive text or email notifications through CUAlerts when your account balance goes above or falls below an amount you specify.
Establish a Secondary Overdraft Source
In addition to a business savings account, business members can apply for and establish a
Business Line of Credit as a secondary overdraft source if they choose. Lines of credit are subject to finance charges in accordance with your business line of credit agreement.
Business Privilege Pay FAQs
What accounts qualify for Business Privilege Pay?
Business members in good standing are eligible to have up to one (1) business checking account covered 60-days after membership has been established.
If my business has multiple checking accounts does each account have individual Privilege Pay limits?
No. A business member can only have Privilege Pay on one business checking account per member account number.
Am I notified if Business Privilege Pay is used?
Yes. Each time your account goes into overdrawn status, you’ll receive an overdraft notice informing you of the overdraft condition and the fee(s) assessed.
What happens if I go beyond the Business Privilege Pay limit?
If you go beyond the $1,500 limit, items are returned for Non-Sufficient Funds and your account is charged a returned item fee of $40.00.
How quickly must I repay the negative balance due to Privilege Pay?
You have 30 days to repay the negative balance, however we will sweep other accounts as soon as the next day if there are funds available to bring the negative balance current. If your account remains negative for more than 30 days, Privilege Pay will be suspended or revoked until your account returns to good standing.
What if I don’t want Business Privilege Pay on my checking account?
You can opt-out by calling us at 845.463.3011, visiting any of our
branches, emailing us on our
secure form, or mailing your request.
How do I know if I qualify for Business Privilege Pay?
After 60 days of membership, you will be automatically enrolled into our complimentary Privilege Pay program for your primary business checking account.
What alternative overdraft sources do you offer?
We offer a few options, including designating a savings account as an overdraft source as well as applying for and establishing a
Business Line of Credit. Both options can provide peace of mind and save you money on Privilege Pay and returned item fees.