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
If you need help balancing your account, use our checkbook balancing tool.
Use Account Monitoring Services
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. 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.
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.
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.
- Personal checking accounts qualify for Privilege Pay.
- You can only have Privilege Pay on one checking account per member account number.
- 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.
- 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.
- 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.
- You can opt-out by calling us at 845.463.3011, visiting any of our branches, emailing us on our secure email form, or mailing your request.
- New members are 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.
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
Visa is a registered trademark of Visa International Service Association.
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 (maximum coverage of up to $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.