Overdraft Protection

Types of Overdraft Protection

Overdraft protection is a “safety net” that covers your debits and keeps you from incurring certain fees should you overdraw your checking account. We provide two types of overdraft protection: from your Regular Savings account and from Courtesy Pay.

Savings Overdraft

River Region Credit Union automatically transfers the amount needed from your Regular Savings account to cover any debits for a small fee. Due to Federal Regulation D, the total number of transfers that can be made from your Regular Savings is limited to six each month.

Overdraft Privilege*

Overdraft Privilege is a courtesy we extend to eligible members if they’ve OPTED IN for River Region Credit Union to authorize and pay their overdrafts. In the event of an accidental overdraft when all other overdraft options have been exhausted, Overdraft Privilege saves you fees that may be charged by merchants for items returned. This service covers overdrafts after first deducting our standard (non-sufficient funds) NSF Fee for each overdraft created by checks, in-person withdrawals, or by other electronic means (debit card, EFT, etc.). Any overdraft balance must be repaid within twenty (20) days. It’s the sole and absolute discretion of River Region Credit Union to pay or not pay an overdraft.

*Overdraft coverage may extend to checks, ACH, debit card, bill payment, telephone transfers between accounts and cash withdrawals. We pay your charges/items in anticipation that you will repay the overdraft immediately. If not repaid within 20 days, overdraft privilege may be suspended. Payment of overdraft items is discretionary. Your account will be evaluated based upon age of account, account history, deposit activity, overdraft instances and account status to determine if it is financially sound to honor your overdraft items. In order to be eligible for this privilege, the account must be in good standing, be open at least 60 days, and have a positive deposit history of at least $300 per month.

Overdraft Privilege FAQ’s

Q: What is an overdraft and what causes it?

A: An overdraft happens when you don’t have enough money in your checking account to clear a transaction. River Region Credit Union offers two overdraft protection options to cover transactions that result in an overdraft on your checking account. These features can protect you from merchant fees and/or the embarrassment of being turned down in the check-out line for lack of funds.

For River Region Credit Union to cover your overdrafts on everyday debit card transactions, you need to “Opt In” to Overdraft Privilege. Federal Regulation E requires that, for financial institutions to charge fees for paying overdrafts on everyday debit card transactions, a consumer must consent (or opts in) to the overdraft service for those types of transactions.

Here are a couple of scenarios to consider:

1) You’re at the grocery store, in the checkout line, with a grocery cart full of groceries. Your total comes up to a little more than the $163 in your checking account. Would you want your River Region Credit Union debit card transaction to be approved?

2) You’re out of town and your car breaks down. It’s going to cost $460 to get it fixed, but you only have $325 in your checking account. Would you want your River Region Credit Union debit card transaction to be approved?

If you haven’t opted in already for River Region Credit Union to authorize and pay overdrafts for everyday debit card transactions, you can do so several ways:

1) Print and return the Overdraft Opt-In/Out Form to any of our locations.

2) Visit one of our branch locations.

3) Call us at 866-649-5015.

If you have more than one checking account at River Region Credit Union, you’ll have to make your Opt in/out selection for each of your checking accounts. If you choose not to opt in, River Region Credit Union WILL NOT authorize and pay overdrafts for everyday debit card transactions, which may lead to purchases being denied.

Q: How does overdraft protection work?

A: We offer two types of overdraft protection: From your Regular Savings, and coverage from Overdraft Privilege.

If you overdraw your checking account and have overdraft protection from your Regular Savings account, funds are automatically transferred from your Regular Savings to cover your debits. However, the number of transfers that can be completed are limited by Federal Regulation D to six each month. Automatic overdraft protection coverage from your Regular Savings has a small fee for each transfer. Once your Regular Savings don’t cover your overdraft, if you’ve opted in for River Region Credit Union to authorize overdrafts, and you qualify, Overdraft Privilege will cover overdrafts after first deducting our standard NSF (non-sufficient funds) Fee for each overdraft transaction. A fee may be imposed for covering overdrafts created by check, in-person withdrawal, ATM withdrawal, or other electronic means.

Q: What happens if I have the overdraft protection from my Regular Savings and I overdraw my checking balance but no funds are available in my Regular Savings to cover the clearing check(s)?

A: If no funds are available in your Regular Savings and you’ve opted in for us to authorize and pay overdrafts, if you qualify, Overdraft Privilege will cover the overdrafts after first deducting our standard NSF Fee for each overdraft transaction. If the options mentioned above are not available, or have been exhausted, the outstanding items can’t be cleared/processed and will be returned. This will result in a fee(s) assessed for these items.

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