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Overdraft, courtesy pay, and returned item fees occur when a transaction is made for more than the available amount in your checking account. Any of the following transaction types can cause a fee:

  • Making a purchase with your debit card

  • Withdrawing money from an ATM

  • Making an automatic or other electronic payment

  • Writing a check

Overdraft protection fees occur when you have adequate funds available in your savings account that can be transferred to cover the difference from your checking account. You will be charged a fee and your financial institution will initiate the transfer. 

Courtesy pay fees occur when you do not have adequate funds available but the credit union makes the decision to approve the transaction. You will be charged a fee and your account will go into the negative. 

Returned item fees, also called insufficient fund fees (NSF), occur when you do not have adequate funds available and the credit union returns or denies the transaction. A fee is charged for each return or denial.

Please review our Courtesy Pay Disclosure, Truth in Savings Disclosure, or speak to a member service representative for more information on Bay Atlantic FCU's policies and fees.

What is the benefit of opting in for overdraft protection and/or courtesy pay coverage?

With overdraft protection and courtesy pay, you can avoid having your debit card declined or your check bounced. Having you card declined in a store or at an ATM can be both frustrating and embarrassing. Some businesses and individuals (i.e. a cable company or your landlord) may even charge you a returned check fee of their own!

So while there are fees for overdraft protection and courtesy pay coverage, they may minimize additional charges and help you stay in good standing with the people you do business with.

Keep in mind, even if you have courtesy pay coverage, there is no guarantee that a transaction that would cause an overdraw will be approved and covered. You can also be charged multiple fees in the same day. Overdraft protection and courtesy pay coverage have their benefits, but you should avoid using either plan as a kind of short-term loan.

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