Courtesy Pay is a service offered to SPC share draft (checking) account holders. With Courtesy Pay, the Credit Union at its sole discretion may honor and pay checks, automatic debits (ACH), VISA Debit Card purchases, ATM withdrawals, and Bill Pay withdrawals drawn against a share draft (checking) account that does not have sufficient funds available at the time of the presentment.
Courtesy Pay is a way for us to help protect your account and reputation when an overdraft occurs. Courtesy Pay protects your good credit rating and:
- Protects you from the embarrassment of returned checks
- Protects you from merchant returned check charges
- Protects you from collection agency fees
Courtesy Pay is not a loan and transactions are not reported on your credit report.
Frequently Asked Questions
How much does Courtesy Pay cost?
It is free until you use it. Then, a $30.00 Courtesy Pay fee is assessed. If you use Courtesy Pay for two overdrawn items, your account will be charged two separate fees ($30.00 for each overdrawn item, even on the same day).
How does Courtesy Pay work?
Overdrafts on your share draft (checking) account, up to a $600 limit [including the amount of the overdrawn item(s) and the Courtesy Pay fee(s)] may be honored by SPC Credit Union. A $30 fee will be assessed for each item that draws your account negative. You then have up to 30 days to bring the account current, either through a direct deposit, transfer of funds, or a deposit at one of our branch offices.
Do I have to apply for this service?
No. We require no application or additional signature. As long as your account is not drawn into the negative in the first 60 days, in good standing and you make regular deposits to the share draft (checking) account, your Courtesy Pay will be turned on.
What if I already have overdraft protection?
If you have established other overdraft protection methods, such as a line of credit or automatic transfer from your other accounts, we will always look to pay any overdraft by those other methods first before paying your overdraft utilizing Courtesy Pay.
What is the difference between Overdraft Protection and Courtesy Pay?
Overdraft Protection transfers funds from a previously designated account to pay the item. Overdraft Protection will NOT allow the account to go into a negative balance. There is no fee to sign up for Overdraft Protection (only when it is used). Courtesy Pay is a non-contractual courtesy, offered by SPC, to eligible members. This service pays items which would otherwise be returned as non-sufficient funds (NSF). There is a $30.00 fee for each item paid. Overdraft Protection always takes effect, first, before Courtesy Pay is utilized.
Is Courtesy Pay a loan?
No. It is a non-contractual courtesy that we extend to our Members who maintain their share draft (checking) accounts in good standing. This feature is discretionary on the part of the Credit Union. The words, “DISCRETION” and “DISCRETIONARY”, mean there is NO PROMISE TO PAY. The Courtesy Pay privilege is not guaranteed. Courtesy Pay can be taken away any time the Credit Union determines the account is no longer in good standing. Whether or not we decide to pay your overdraft item depends on how you manage your account.
How can I access Courtesy Pay?
Overdrafts may be paid using your Courtesy Pay funds up to the limits mentioned above for the following types of transactions:
- POS/Debit Card Transactions
- Electronic Transactions
- Bill Payer
- On-Line Banking
- ATM Withdrawals.
We strongly recommend you first perform a balance inquiry before making an ATM withdrawal. Should you request a withdrawal that puts your account into the negative, the ATM may honor that request by drawing on your Courtesy Pay limit and/or any other overdraft protection you may have with the Credit Union. The ATM receipt will show the amount withdrawn. It may not indicate your withdrawal has taken your account negative or accessed Courtesy Pay and/or other overdraft protection funds, or charged a fee.
With Courtesy Pay, aren’t you encouraging me to write bad checks?
No. We’re simply acknowledging that honest mistakes occur even among the best record keepers. With the Courtesy Pay program, we believe we are providing a valuable service. A fee will be assessed whether we pay or return an item that is presented against an account with insufficient funds to cover the item. Courtesy Pay allows us to pay the item and help you avoid additional fees. But in all cases, we encourage you to maintain your account in good standing, by:
- Making deposits sufficient to cover transactions
- Bringing the account to a positive balance at least once every thirty days
- Not permitting administrative orders, judgments, or liens to be placed on the account.