Overdraft Services

What you need to know about overdraft coverage

Image provides the definition of "Overdraft" as An overdraft happens when you make a purchase but don’t have enough money in your account to cover it.

At times, life can be unpredictable, and it’s easy to lose track of expenses or account balances. Having a check or payment returned because of insufficient funds can be costly and inconvenient. That’s why we offer two overdraft services: Overdraft Protection and Courtesy Pay.

Overdraft Protection

Overdraft Protection covers overdrafts by transferring your money from another 1st University deposit account — such as your savings account — to your checking account.

Courtesy Pay

Courtesy Pay is a discretionary, noncontractual overdraft service that provides you with a safety net up to an automatically assigned overdraft limit. The Courtesy Pay limit may be available for:

  • Checks and other pre-authorized transactions using your checking account number, such as automatic payments (ACH), bill payments, or recurring debit card transactions.

  • If you request it (known as “opting in”), we may also authorize ATM and one-time debit card transactions using your available balance and Courtesy Pay limit.

How does Overdraft Services work?

Your account may become overdrawn due to:

  1. Writing a check or making a payment that exceeds your balance

  2. Using your debit card at a store or online

  3. Depositing a check that later bounces

  4. Account fees

  5. Deposits not yet available based on our Funds Availability Policy

 If you're eligible, we may approve these overdrafts within your unused Courtesy Pay limit as a non-contractual courtesy or by using your Overdraft Protection.

You should make every effort to bring your account back to a positive balance as soon as possible—and must do so within 30 calendar days. If not, your Courtesy Pay coverage may be suspended, and additional items could be returned unpaid. Your limit may be reinstated the first business day after your account returns to good standing unless we advise you otherwise or you ask to have the service removed.

Keep in mind, we may decline to pay an overdraft at any time, even if we’ve paid it for you in the past, especially if your account doesn’t meet the Courtesy Pay Terms and Conditions or you’ve exceeded your limit.

What does these overdraft services cost?

When you overdraw your account and Courtesy Pay covers the item, you’ll be charged a paid item overdraft fee of $30.00 per transaction. This applies to:

  • Checks and other payments using your account number

  • If you opt in, ATM and one-time debit card transactions

Whether a fee is assessed depends on your available balance when the transaction posts. Visit the Courtesy Pay Terms and Conditions to learn more about how balances and fees are determined.

When you overdraw your account and Overdraft Protection covers the item, you’ll be charged a paid item overdraft fee of $2.00 per transaction.

How can I add Courtesy Pay for ATM and one-time debit card purchases?

To opt in for Courtesy Pay coverage complete the form below, call us at (254) 254-2797, or stop by the credit union.

What is my Courtesy Pay limit? Can I get it on more than one account?

Your Courtesy Pay limit depends on your account typet. If you have multiple eligible checking accounts in your household, each account may have its own Courtesy Pay limit.

  • Adult Checking (ages 18 and over): $500.00

  • Youth Checking (ages 14 to 17): $0.00

  • Second Chance Checking: $0.00

What if I don’t want Courtesy Pay?

You can remove Courtesy Pay or cancel your opt-in for ATM and one-time debit card coverage at any time. To do so just call us at (254) 752-2797 or stop by. Keep in mind, fees may still apply for returned items, and you are responsible for any overdrawn balances that occurred before removal.

Why Opt-In? 

Courtesy Pay benefits you by allowing us to cover your everyday purchase such as groceries, gasoline, or a prescription. It also saves you the embarrassment of having your purchases declined. These examples, along with many others, are reasons for utilizing this safety net.

What fees will I be charged if 1st University pays my overdraft?

  • Overdraft Protection: $2.00 fee for each transfer from your designated 1st UCU account

  • Courtesy Pay: $30.00 for each time we pay an overdraft

  • NSF: If we do not authorize and pay an overdraft, your transaction will be declined and you will be charged a fee of $30.00. Additional merchant fees may apply.

  • There is no limit per day on the total fees we can charge you for overdrawing your account. If an item is presented for payment multiple times, a fee will be assessed each time.

Use This Form To Opt In To Cover ATM and One-Time Debit Card Purchases

Opt-In Form

 

Life happens — we’re here to help you stay covered. Whether you need a backup for everyday expenses or a safety net in case of an emergency, 1st University Credit Union offers overdraft solutions that put control in your hands. With options like Overdraft Protection and Courtesy Pay, we help you avoid interruptions and move forward with confidence. Based in Waco, we proudly serve the Central Texas community.

Helping You Do Life — one safeguard at a time.