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Overdraft Solutions Scenarios

How it works.

Scenario #1

Mark has an available balance of $1,900 in his account after receiving credit for his direct deposit. He schedules his mortgage payment for $1,800 but forgets that his insurance payment of $107 is already scheduled to be paid on the same day. His insurance payment is submitted first, and when his mortgage payment is submitted for payment, his account is overdrawn.

Courtesy Pay Fee: If Mark is within his discretionary limit, both his mortgage and insurance payment are paid through our standard Courtesy Pay practices, and his balance is now overdrawn by $7.00. He will not incur a Courtesy Pay fee because his available balance is overdrawn between $.01 and $10.00.

NSF (Non-Sufficient Funds) Fee: If Mark’s balance exceeds his discretionary limit, his mortgage payment is returned, and he incurs a $30 NSF fee.

Scenario #2

John and Mary are both unknowingly making debit card purchases from their joint account at the same time. John makes a purchase that overdraws their account by $2.00, while Mary makes a purchase that overdraws their account an additional $50.00. Because they have authorized expanded Courtesy Pay practices to cover ATM withdrawals and everyday debit card transactions up to their discretionary limit, both transactions are authorized and paid by Avadian.

Courtesy Pay Fee: Because the first purchase resulted their account’s available balance being overdrawn between $.01 and $10.00, they do not incur a Courtesy Pay fee. The second transaction resulted in their account’s available balance being overdrawn in excess of $10.00, and their account is accessed a $30 Courtesy Pay fee.

NSF (Non-Sufficient Funds) Fee: If John and Mary had not authorized expanded Courtesy Pay practices, both transactions would have been denied at checkout, and no NSF would be assessed.

Scenario #3

Robert’s current and available balance are both $100. He swipes his debit card at the grocery store to make a $20 purchase. A hold is placed on his account, so his available balance is now $80. His current balance will remain at $100 until the grocery store finalizes the transaction by sending it to us for payment (a hold can remain on his account for up to four days or until we receive notice to pay the transaction, whichever occurs first).

In the meantime, a check Robert previously wrote for $90 is submitted for payment. Our standard Courtesy Pay practices cover checks, up to his discretionary limit, so we authorize and pay the check, which causes his account to be overdraft by $10.

Courtesy Pay Fee: Because Robert’s account is overdrawn by exactly $10.00, he does not incur a Courtesy Pay fee.

NSF (Non-Sufficient Funds) Fee: Without our authorizing and covering his check under our standard Courtesy Pay practices (or if he exceeded his discretionary limit), his check would have been returned, resulting in an NSF fee of $30. He may have faced returned payment fees from the recipient of the check.

Scenario #4

Candace has an available balance of $2,400 when her car breaks down on the way to work. Her rent and car payment are scheduled to be paid automatically today, totaling $1,900. The mechanic says her car repairs will cost $700 and thankfully be done by the end of the day. She goes to pick up her car and uses her debit card to pay the $700.

Courtesy Pay Fee: If Candace had authorized expanded Courtesy Pay practices, her $700 repair bill would be paid if she was within her discretionary limit. Her available balance would be overdrawn by $200, and she would incur a $30 Courtesy Pay fee.

NSF (Non-Sufficient Funds) Fee: If Candace had exceeded her discretionary limit or had not authorized expanded Courtesy Pay practices, her transaction would have been declined.

Overdraft Protection: But Candace had established Overdraft Protection by linking her checking account to her savings account. She’d been saving for a down payment on a house for a while, so her savings account had enough money to cover her overdraft. The funds are transferred automatically from savings to checking, and Candace is assessed only a $5 transfer fee.

Scenario #5

Martin has an available balance of $8,500 when he discovers a leak in the roof of his family’s home. He gets a quote to repair the roof for $6,500, and he thinks he’s got it covered. But it takes a couple of days for the work to be done, and several automatic payments totaling $2,500 hit his account before he actually uses his debit card to pay the roofer.

Courtesy Pay Fee: If Martin had authorized expanded Courtesy Pay practices, his $6,500 repair bill would be paid if he was within his discretionary limit. His available balance would be overdrawn by $500, and he would incur a $30 Courtesy Pay fee.

NSF (Non-Sufficient Funds) Fee: If Martin had exceeded his discretionary limit or had not authorized expanded Courtesy Pay practices, his transaction would have been declined.

Overdraft Protection: But Martin had established Overdraft Protection by linking his family’s checking account to a personal line of credit. The funds are transferred automatically from his line of credit to the checking account, and the cost of Martin’s overdraft is the interest he’ll be charged on his line of credit.



The credit union is federally insured by the National Credit Union Administration.
Additional insurance of up to $250,000 on your savings accounts is provided by Excess Share Insurance Corporation, a licensed insurance company.

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