Overdraft Privilege Protection
What is an Overdraft?
When you attempt to make a purchase by debit card or check and there is not enough money in your account to cover the transaction, an overdraft occurs on your account. To help eliminate merchant fees, alleviate embarrassing situations, and lend a hand when finances are tight, Dupaco offers Overdraft Privilege, which pays overdrafts on eligible member share draft accounts up to $700.
To sign up for Overdraft Privilege, call Dupaco's deposit operations department at 800-373-7600 / 563-557-7600, ext. 207, or email email@example.com.
What is Overdraft Privilege?
Overdraft Privilege is a service that's consistent with the credit union's philosophy and mission to meet members' financial needs and resolve short-term financial problems. It protects members from the embarrassment and cost of bouncing a check or multiple checks (most merchants charge a Non-Sufficient Funds (NSF) fee per check on top of the financial institution's NSF fee). Here is what you need to know about Dupaco's Overdraft Privilege service, how to elect coverage, alternatives, and ways to avoid overdrafting.
When your account lacks sufficient money to cover a cleared check or transaction, an overdraft occurs on your account. Dupaco will attempt to honor your check in two sequential ways:
In the event you neither have enough money in savings for an automatic transfer nor are enrolled in Dupaco's Overdraft Privilege program, the credit union must return the check to the merchant or payee as "unpaid due to insufficient funds." This incurs a returned check fee from the credit union, along with additional $25-$50 in fees charged by many merchants each time a check is returned to them due to insufficient funds.
What is an Overdraft Fee?
An overdraft fee is charged when a withdrawal from an individual's bank account exceeds the available balance.
If an account is overdrawn, is there a fee charged each day the account is negative?
Dupaco's NSF fee schedule is not determined on a per-day basis. The NSF fee is per item, therefore if the account is overdrawn, a NSF fee is charged when a new check or transaction clears the account. Some banks charge a fee for every day an account is overdrawn. For Dupaco members, as long as no additional checks or transactions clear, a member's account may remain overdrawn for as long as 30 days with no additional fees or interest charged.
Does Dupaco control the order in which checks and debit transactions clear the account?
No. Dupaco posts checks and debit transactions in the order the credit union receives them. Therefore, maintaining an accurate record of outstanding checks written and debit transactions you have made on your checking account will give you the "real" balance of your account at any time.
What are the eligibility requirements for Overdraft Privilege?
An eligible account in good standing is defined as the following:
Are new checking accounts eligible?
Not immediately. For new checking accounts there will be an aggregate deposit requirement of $300 during the initial 30-day period following the opening of the account. In addition, the member must meet the eligibility requirements listed above in order to qualify for Overdraft Privilege.
Is interest charged on Overdraft Privilege advances?
No. Because the amount of the overdraft advance is provided at no interest, Overdraft Privilege provides members with an excellent alternative to expensive payday loans.
How does Dupaco's overdraft protection fee compare to those charged by other financial institutions?
Overall, credit unions typically charge less for overdraft services than other financial institutions offering similar services. (The average overdraft fee at a credit union is considerably less than the average fee at the nation's big banks.)
Are there alternatives to Overdraft Privilege?
Yes. With a quick call or e-mail to Dupaco, you can request that an automatic transfer* be made from your savings account to your checking, should your checking account balance reach zero. And should the need arise, Dupaco representatives are also available to help members determine better ways to budget and manage their money.
Do I have to sign up for Overdraft Privilege?
Due to changes in federal regulation effective August 15, 2010, Dupaco can pay overdrafts on ATM transactions and debit card transactions on your account only if you ask us to. Checks, ACH recurring payments, and other transactions that use share draft checking account number will be paid without the need for you to elect this coverage.