What is the difference between SRP Federal Credit Union's Overdraft Protection and Overdraft Privilege programs?
Our Overdraft Protection service transfers funds from previously designated shares and/or a Platinum Line of Credit to pay an item that overdraws the checking share on which it is drawn. Overdraft Protection will not allow the share to go into a negative balance. A fee is assessed with each transfer triggered.
Overdraft Privilege is a non-contractual service, offered by SRP FCU, to eligible owner/joint owners. Using an established overdraft limit, this service pays items which would otherwise be returned. There is a fee assessed for each item paid.
Note: The Credit Union has no obligation to pay an item under Overdraft Privilege. It is a courtesy service, which we may extend or revoke at our discretion. In contrast, Overdraft Protection is a contractual arrangement under which we are obligated to meet the commitments addressed in our agreements.
How do I apply?
Qualified accounts in good standing are automatically eligible for Overdraft Privilege after 30 days of opening. Overdraft Protection can be set up at your request. Overdraft Protection associated with a Platinum Line of Credit requires an application and is subject to approval. With Overdraft Protection, you can let us know from which account(s) and in what order of use you would like transfers to be made. Call or visit any branch location to speak with a Member Service Representative.
How will I know if I have Overdraft Privilege on my checking share?
You will be notified by us in writing*, you can ask a branch employee, or you may call to inquire. Accounts in good standing are automatically eligible; however, it is always in the Credit Union's discretion to grant this protection and/or to continue the service. For Overdraft Privilege consideration, your account is in "good standing" if you meet the following conditions:
-Make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all credit union fees and charges)
-Avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit
-Have no outstanding collection items or past due debts against your account
-Have no legal orders, levies or liens against your account.
*An Opt In Confirmation Notice is sent to the mailing address on file when consent is given by the member to SRP Federal Credit Union to authorize and pay overdrafts on ATM and everyday debit card transactions for their related checking account.
Is Overdraft Privilege available for my business account?
What does Overdraft Privilege cost?
There is no additional cost associated with this privilege until we pay an item that is drawn against insufficient funds. Then, an Overdraft Privilege Fee is assessed. Depending on the dollar amount of the item the fee can be as low as $2 and as high as $35 per item.
Please note that Overdraft Protection is different. With Overdraft Protection, a transfer fee of $2 will be assessed when your checking account requires a funds transfer from a designated account to cover an item.
If you have both Overdraft Protection and Overdraft Privilege, we will exhaust your Overdraft Protection options before resorting to Overdraft Privilege to cover an overdraft item.
How far overdrawn can my checking share go under the Overdraft Privilege program?
We generally cover your items that will not take your balance more than $500 negative. We then assess the applicable fees even if that takes your account more than $500 negative. Fees can impact your account balance and the payment or return of subsequent items.
We will never encourage you to test the limit of your Overdraft Privilege service. It is a safety net intended to protect you from the problems associated with overdrafts. It is not intended as an alternative to proper management of your accounts.
Frequent abuse of Overdraft Privilege or leaving a negative account balance for an extended period of time can lead to revocation of the service. If you seek greater protection then you should consider our Overdraft Protection service, which allows you to transfer your available funds from other accounts or lines of credit so that your checking share does not fall into a negative balance.
What if I go beyond my Overdraft Privilege limit?
Overdrafts above and beyond your established Overdraft Privilege limit may result in checks or other items being returned. A Non-sufficient Funds Fee of $35 will be charged per item. The scenarios below demonstrate how fees can impact your balance and the payment or return of subsequent items:
Scenario A: Your actual balance is $100 and your available balance is also $100. A check is presented against your account for $600. Most commonly we will pay this check into the negative using your Overdraft Privilege limit and assess the corresponding fee. In this example, the Overdraft Privilege Fee will be $35. Your available balance will then be -$535 and your limit would be reached.
Scenario B: Your actual balance is $100 and your available balance is also $100. A check is presented against your account for $300. Most commonly we will pay this check into the negative using your Overdraft Privilege limit and assess the corresponding fee. In this example, the Overdraft Privilege Fee will be $35. Your available balance will then be -$235, leaving you with a $265 limit remaining to cover any additional items. If another check is presented for $300 we would generally not pay it. The item would be returned due to insufficient funds and a Non-sufficient Funds Fee of $35 would be assessed against your account, leaving you with an available balance of -$270. Your Overdraft Privilege limit does not limit your returned item fees.
What are some of the ways I can access my Overdraft Privilege limit?
The chart below shows the different ways you can access your Overdraft Privilege limit and indicates whether or not this limit will be reflected in the balance provided.
Is my Overdraft Privilege limit available?
Writing a Check - Yes
Debit Card (recurring) - Yes
Debit Card (everyday) - No*
ATM Withdrawal - No*
ACH-Auto Debit - Yes
SRP Online - Yes
Bill Pay - Yes
TYME Line - No
Does the balance provided reflect my Overdraft Privilege limit?
Teller - No
Writing a Check - N/A
Debit Card (recurring) - N/A
Debit Card (everyday) - N/A
ATM Withdrawal - No
ACH-Auto Debit - N/A
SRP Online - No
Bill Pay - N/A
TYME Line - No
*Overdraft Privilege will be made available for ATM and everyday debit card transactions only upon your request. Call 1-800-237-9829 or 803-278-4851 and select the Member Services option, or visit any SRP Federal Credit Union branch to arrange for your ATM and debit card coverage.
What transactions will trigger the Overdraft Privilege service?
If you overdraw your checking share, Overdraft Privilege will cover written checks or preauthorized drafts written to third parties, ACH debits, and check deposits on hold*, such that funds are available. If you Opt-in, Overdraft Privilege will also cover your debit/check/ATM card transactions for withdrawals and everyday debit card point of sale (POS) purchases.
*Funds availability rules apply and funds deposited on a real time basis may not be made available immediately. For example, checks you deposit may be subject to uncollected funds holds. See our funds availability disclosures and shared branching rules for details.
What is the difference between my actual balance and my available balance?
Your actual balance is the total amount of funds in your account. It reflects transactions that have posted to your account, but not transactions that have been authorized and are pending. Any purchases, holds, fees, other charges, or deposits made on your account that have not yet posted will not appear in your actual balance. While it seems that the term "actual" implies that this is the amount you have to spend, this is not always the case. For example, your actual balance is $50 but you just wrote a check to your hairdresser for $25. Since your account is not going to reflect the check until it clears, your actual balance remains at $50.
Your available balance is your actual balance less any outstanding holds or debits that have not yet posted to your account. We use your available balance when determining whether a transaction will cause your account to overdraw and for charging any related overdraft fees. You can review your available balance when viewing your account online at SRP Online, at an ATM, by phone or at a branch.
Is my Overdraft Privilege limit shown in my balance?
No. Your Overdraft Privilege amount is never reflected in your balance.
How do merchant authorizations impact my available balance?
Authorizations are deducted from your available balance, not your actual balance. We post debit card authorizations and settlements from merchants as we receive them and we cannot control when we receive them. Some merchants may submit an authorization for more than the settlement amount. For example, your local car rental agency may disclose to you that they require an authorization of $500 before approving you to leave with the rental car. If your rental expense is $185, they only send a settlement for $185 while the $500 authorization hold reduces your available balance until we receive the corresponding settlement transaction. The most common transactions that generate authorizations for amounts that differ from settlement amounts are travel and entertainment transactions. Generally, places such as retail stores know the exact amount of their transactions when they first initiate your card transaction and send us authorizations and settlements for the same amount. You choose the merchants you do business with and if the car rental companies, hotels, and other merchants you use do not disclose their authorization policies or have unfavorable policies you may want to consider not using your institution debit card with them. Furthermore, PIN-based transactions post to your account without the timing delays often associated with signature-based transactions.
In what order are transactions posted to my account, and what impact does this have on overdraft fees?
The order in which items are presented may affect the fees assessed to your account. Most transactions are posted to your account when you conduct them. The following transactions are generally posted real time or very near real time:
-Transactions you conduct at our teller counters such as deposits*, withdrawals, and cashing on-us checks
-Transactions you conduct at shared branching locations*
-Your ATM deposits1 and withdrawals
-Your debit card purchases conducted with a PIN
-Authorizations (holds) for your debit card purchases conducted using the VISA network**
-Transfers you conduct using our automated phone system (TYME Line)
-Transfers you conduct using SRP Online, SRP Mobile, or Bill Pay
* Funds availability rules apply and funds deposited on a real time basis may not be made available immediately. For example, checks you deposit may be subject to uncollected funds holds. See our funds availability disclosures and shared branching rules for details.
** The corresponding settlements may lag hours or days based on when the merchants submit them. We post settlement transactions at the time we receive them.
For Automated Clearing House (ACH) entries and checks which are received in batch files, SRP Federal Credit Union posts in the following manner:
-Checks, ACH payments and ACH deposits
-Checks are posted by amount from small to large. Posting by amount from small to large allows for the most items to be paid and helps to minimize fees.
-ACH debits are posted by amount from small to large
We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, please be aware that the order of item payment may create multiple overdraft items during a single banking day for which you will be charged an Overdraft Privilege Fee of up to $35 for each overdraft item paid. Consider the following scenarios:
Scenario A: Your actual balance is $100 and your available balance is also $100. You make an ATM withdrawal for $200. If we process your withdrawal using your Overdraft Privilege limit you will be assessed the corresponding overdraft fee.
Your available balance can differ from your actual balance and an overdraft can occur even when you have a positive balance. For example:
Scenario B: Your actual balance is $100 and your available balance is also $100. You make a purchase with your debit card at a merchant who submits an authorization for $35. When we approve the authorization we commit to pay the merchant and reduce your available balance to $65. Since the merchant has not yet settled the transaction, your actual balance remains at $100. You then request an $80 withdrawal at an ATM. At this point you do not have sufficient available funds for the ATM transaction, and if we honor your request using your Overdraft Privilege limit we will assess the corresponding fee. The fee is based on your available balance of $65, not your actual balance of $100.
Next the merchant submits the settlement transaction for $35. You do not have a sufficient available balance to cover this transaction. If we pay the $35 transaction using your Overdraft Privilege limit, you will be assessed the corresponding fee. In this scenario you drew on unavailable funds twice using your Overdraft Privilege and incurred two overdraft fees.
If we change Scenario B slightly, the outcome is different:
Scenario C: If the merchant submits the $35 settlement transaction before you conduct the $80 ATM withdrawal transaction, your $35 purchase does not trigger your Overdraft Privilege service and an Overdraft Privilege fee is not assessed. Following your purchase, both your actual balance and available balance are $65. Next you request an $80 ATM withdrawal against an available balance of $65. This requires drawing on funds which are not available. If we process your withdrawal using your Overdraft Privilege limit you will be assessed the corresponding fee. In this scenario you drew on unavailable funds once using Overdraft Privilege and incurred one overdraft fee.
The difference between Scenario B and Scenario C was how quickly the merchant submitted the $35 settlement transaction. SRP Federal Credit Union cannot control this. We process merchant authorizations and settlement transactions as we receive them. PIN-based transactions post to your account without the timing delays often associated with signature-based transactions.
There is daily maximum of $160 in total Overdraft Privilege Fees that may be imposed on your account.
Is Overdraft Privilege a loan?
No, it is a courtesy service offered to members who maintain their checking accounts in good standing to provide you with the convenience of knowing your purchases will be approved if there are insufficient funds in your account. This service is discretionary on the part of SRP Federal Credit Union. The Credit Union - or you - may discontinue this service at any time, which will not affect any obligations to pay for any funds advanced or fees incurred prior to termination.
Can I use Overdraft Privilege to make my SRP Federal Credit Union loan payment?
Yes, however, you cannot use the service to bring another account to a positive balance.
When do I have to repay the overdraft?
You must bring your account to a positive end-of-day balance within 30 days of overdraft. If you have additional overdraft items during this time, the account must be brought to a positive balance on or before the 30th day from the date of the initial overdraft item. Deposits received by SRP Federal Credit Union during the 30 days will be applied first to your overdrawn balance. Please contact our Deposit Services Department at 803-442-5122 immediately if you need to make a request for other arrangements.
What if I do not want Overdraft Privilege?
You may opt out of the service at any time by contacting us either in person, by mail, or by phone. Overdrawn items will be returned unpaid and a $35 Non-sufficient Funds Fee will be assessed after funds from Overdraft Protection (if applicable) have been depleted. You may also be charged additional fees by the merchant/payee.
Can Overdraft Privilege be taken away?
Yes. The service can be revoked if your account is no longer in good standing or the Credit Union deems it to be in its best interest to do so. This may include, but is not limited in any way, our belief that you are not properly managing your account. We may take away the service without notice and will have no obligation to honor any item from the moment of revocation.
Are you encouraging me to write bad checks?
No. We are responding to member requests to pay items that were returned due to an error made by the member. We are providing our members with a valuable service to avoid the multiple costs that may be encountered in dealing with a merchant and perhaps the merchant?s bank in these situations. Overdraft Privilege will help you to avoid these problems while it is in effect.
How can I avoid an overdraft?
The best way to avoid overdrafts and fees is to monitor your transactions and keep track of your account balance. Here are a few tips to help you:
-Record all transactions into a checkbook register. Don?t forget to include any fees and automatic bill payments or any other recurring payments that you may have set up.
-Reconcile your checkbook regularly, and review your account statements each month.
-Enroll in SRP Online and SRP Mobile to gain convenient access to your account any time you would like.
-Set up SRP Account Alerts to be notified of key activities in your account.
-Access your account from any touch-tone phone through TYME Line, SRP Federal Credit Union?s 24-hour automated telephone response system.
-Call or visit any of our branch or ATM locations.
Ways to Cover Overdrafts at SRP Federal Credit Union and Example of Associated Fees*:
Good account management - $0
Link to savings account - $2 transfer fee
Overdraft line of credit - Up to 18% APR**
Overdraft Privilege - Overdraft Privilege Fee of up to $35*** for each item
* These costs are provided only as examples. Please ask us about our specific products and fees.
** Annual Percentage Rate subject to change without notice.
*** Per paid item:
Fee is assessed on the amount of the negative available balance change, after the item is posted. If the negative account balance change:
- Is less than or equal to $4.99 - $2.00 fee per item paid
- Is between $5.00 and $9.99 - $10.00 fee per item paid
- Is between $10.00 and $19.99 - $20.00 fee per item paid
- Is between $20.00 and $29.99 - $30.00 fee per item paid
- Is greater than or equal to $30.00 - $35.00 fee per item paid
I thought I had Overdraft Privilege. Why did you return my check as NSF?
Items are returned NSF when your available Overdraft Privilege amount has been exhausted or is revoked by us. A Non-sufficient Funds Fee of $35 will be assessed per item.
What if I have more questions?
If you have further questions about our Overdraft Services, please contact us during regular business hours at 1-800-237-9829 or 803-278-4851 and select the Member Services option or stop by any of our branch locations.