Overdraft Coverage

When unexpected overdrafts happen, overdraft coverage can help!

Life happens. Here at SFCU, we understand that unexpected overdrafts occur from time to time – overdraft coverage can help!

An overdraft occurs when you do not have enough money in your checking account to cover a transaction, but we pay it anyway. The choice is yours. Consider these ways to cover overdrafts:

Service	Cost
Overdraft Protection (Link to another deposit account at SFCU)	FREE
Overdraft Privilege	$25 Overdraft Fee Per Item

Overdraft Protection

Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at SFCU for a fee.

Overdraft Privilege

Overdraft Privilege allows you to overdraw your account up to the disclosed limit in order to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is available as a secondary coverage.

Please review the “What Else You Should Know” section at the bottom of this page for other important information.

Transactions Covered with Overdraft Privilege	Standard Coverage (No Action is Required)	Extended Coverage (Your Consent is Required)
Checks
ACH – Automatic Debits
Recurring Debit Card Payments
Online Bill Pay Items
Teller Window Transactions
ATM Withdrawals
Everyday Debit Card Transactions

Extended Coverage

If you would like Extended Coverage, you can opt in by calling us at 508-678-2851, option #3, visiting us in-branch or by simply clicking on the Extended Overdraft Privilege Form.

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft your transaction will be declined.

You can discontinue the Overdraft Privilege in its entirety by contacting us at 508-678-2851, option #3 or sending us an email at .

What Else You Should Know

• A link to another account may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile, internet, and telephone banking services to track your balance. For financial education resources, please visit mymoney.gov.
• The $25 Overdraft Fee that is charged if you overdraw your account is more than $10 is lower than the fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Fee of $30. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
• Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft Fee from funds that you deposit or that are deposited into your account may call us at 508-678-2851 to discontinue Overdraft Privilege.
• If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Somerset Federal Credit Union (“We”) will charge a Return Fee each time it returns the item because it exceeds the Available Balance in your account. Because we may charge a Return Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge a Return Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an Overdraft Fee.
• For consumer accounts, there is a limit of $150 per day we will charge. We will not charge an Overdraft Fee if a consumer account is overdrawn by $10 or less. These exceptions do not apply to business accounts.
• We generally post items in the following order: 1) Force-paid items from prior day processing, posted in time-stamp order, 2) Outgoing wire transfers, 3) Cash withdrawals with teller, 4) Over-the-counter items posted in serial number order, 5) Cash withdrawals through an ATM, 6) Debit Card transactions posted in time-stamp order, 7) Online banking debits – posted in time-stamp order, 8) TellerPhone Debits, 9) ACH debits in order of presentment, 10) In-clearing checks – lowest amount to highest amount order, 11) Automatic Debit Transactions, such as a loan payment(s) and 12) Fees and other miscellaneous items. However, exceptions will occur. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Fees assessed.
• Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.
• We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
• Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.

• We authorize and pay transactions using the Available Balance.
• Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
• Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
• The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Protection.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Privilege
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Privilege
• Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft.  Note that we may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your Available Balance.
• Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through online banking, mobile banking or Somerset Federal Credit Union’s
• We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction.  When the hold ends, the funds will be added to the Available Balance in your account.  If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, an Overdraft Fee may be assessed.
• Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
• Somerset Federal Credit Union may suspend your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
• Somerset Federal Credit Union may also suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated. If your debit card is suspended, you will be unable to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s) at the ATM while your debit card is suspended. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).

Understanding Overdraft Privilege Limits

• An Overdraft Privilege limit of $500 will be granted to eligible consumer checking accounts opened at least 30 days in good standing.
• An Overdraft Privilege limit of $500 will be granted to eligible Business Checking accounts opened at least 30 days in good standing.
• Overdraft Privilege may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Privilege limit reinstated.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 508-678-2851, option #3 or visit us at 740 County St., Somerset, MA.