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Overdraft Protection & Privilege Pay

Mistakes can happen. A transposed number. A 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 Internet Banking, Mobile Banking, Text Banking, and CUAlerts.

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.

Designate Overdraft Sources

In situations when an overdraft can’t be avoided, you can rely on additional sources to backup your account. In addition to your savings account1, you can assign a Readi-cash line of credit or home equity line of credit as overdraft sources. There is a $5.00 fee when you overdraft from your savings account. You’ll need to apply for Readi-cash or a home equity line of credit if you do not already have a loan.

Explore Readi-Cash

If you choose your home equity line of credit for overdraft, we’ll need you to give us permission to access it. This can be done by returning a completed Home Equity Line of Credit Overdraft Coverage Agreement.

Explore HELOC

Privilege Pay

Privilege Pay acts as a backup service for overdraft—a last chance for your transactions, if you will. When you unintentionally overdraft and have insufficient funds in your checking or other overdraft sources, having Privilege Pay prevents your checks, ACH debits, and card transactions from being declined. We pay each item thereby creating a negative balance in your account. Each item is charged according to our fee schedule2. We then give you a reasonable amount of time to replenish your account1. Privilege Pay is easy to arrange, but we do need your consent to opt-in for this service.

To Sign up for Privilege Pay

As noted, Privilege Pay may pay overdrafts caused by a check, ACH debit, Visa Debit Card, or ATM transaction. In the case of Visa Debit Card and ATM card transactions, you will need to register (opt-in) for overdraft protection services in order for Privilege Pay to cover these transactions. Call us at 845.463.3011 or stop by any branch to discuss and arrange for this protection. You will also need to complete our Overdraft Protection Opt-in form.

To Cancel Privilege Pay

To cancel (opt-out) of Privilege Pay, submit your request by phone, in person at any branch, or by secure email.

Privilege Pay FAQs

What accounts qualify for Privilege Pay?

Personal checking accounts qualify for Privilege Pay.

If I have multiple checking accounts does each account have individual Privilege Pay limits?

No. A member can only have Privilege Pay on one checking account per member number.

Am I notified if 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 $500 Privilege Pay limit?

If you go beyond the $500 limit, items are returned for Non-Sufficient Funds and your account is charged a Privilege Pay item fee of $35.00.

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 Privilege Pay on my checking account(s)?

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 Privilege Pay?

Effective April 1, 2016, new members will become eligible for Privilege Pay after 30 days provided they meet other standard qualifications. A notification letter is sent to you when you initially qualify for Privilege Pay. HVCU does not guarantee payment of any overdrawn item. The credit union retains the right to refuse payment of an overdraft at any time, even though HVCU may have previously paid overdraft requests.

Useful Resources

Monitor your account balances and account activity with text and email notifications through CUAlerts.

Monitor Accounts

1Transactions from a savings account are subject to our Truth in Savings Disclosure and Account Agreement.

2A fee is assessed for each Privilege Pay item paid (total items up to a maximum limit of $500 including Privilege Pay item fees) as set forth in the Fee Schedule. You have 30 days to repay the negative balance however, we will withdraw funds from other accounts as early as the following day if funds are 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. Privilege Pay is not available for estate, organizational, custodial, infant compromise, memorial, or guardian/conservator accounts.