Courtesy Pay is a service which allows Fort Knox Federal, at its option, to pay any item presented for payment against your checking account (suffix 9 only), including: checks and electronic or ACH items – even if it causes the account to become overdrawn (up to $500.00). It also covers ATM withdrawals and debit card transactions if you opt-in. Courtesy Pay helps you to meet emergencies, avoid merchant charges, collection agency fees and the embarrassment of checks returned due to insufficient funds. A nominal fee of $30.00 (same as insufficient fund fee) for each item will be deducted from your checking account for this helpful service. Negative balances will be cured from the next deposit(s) made.
Example #1: Bob’s checking account balance is $50 and he has not signed up for any overdraft protection from savings and does not have an instant cash line of credit loan. He selects items at a grocery store totaling $75. If he uses his CheckCard and has opted-in, Courtesy Pay would cover the purchase.
Balance before purchase=$50
Minus purchase amount = -$75
Minus Courtesy Pay amount = -$25
Minus Courtesy Pay fee = -$30
New Balance = -$55
Although Bob now needs to make a deposit of at least $55.00, he appreciates not being declined and being spared the embarrassment and inconvenience of going home without his purchase.
Example #2: Sandy’s checking account balance is $50. She has signed up for overdraft protection from savings which has a current balance of $105. Also, she has an established instant cash line of credit loan with $100 available. She has an insurance payment of $350 charged to her account. The transaction would be processed as follows:
Balance before charge = $50
Minus insurance payment= -$350
Plus savings protection = $100 ($5 needed for share)
Plus overdraft protection = $100
Minus Courtesy Pay = -$100
Minus Courtesy Pay Fee = -$30
New Balance = -$130
The overdraft that Sandy created will be taken from the next deposit she makes to her checking account. Sandy should immediately cover this overdraft situation. If not covered on a timely basis, the balance may be taken from any account or loan she has.
Courtesy Pay allows Fort Knox Federal to provide a higher level of service to members by helping to protect accounts and reputations when an inadvertent overdraft occurs.
Please read the following policy which provides details about Courtesy Pay. Your particular attention is invited to paragraph 7 which discusses the order in which overdraft protection will be provided. If you have any questions about Courtesy Pay, overdraft protection or any matter concerning your accounts with Fort Knox Federal, please call Member Resource Branch at your local number, extension 6400 or if long distance, 800-285-5669, extension 6400.
You can Opt-In to Courtesy Pay at any time. Contact our Member Resource Branch or come into any of our branch locations for more information.
Courtesy Pay Policy
1. Courtesy Pay is a service that allows Fort Knox Federal Credit Union (FKFCU), at its option, to pay a check written or pre-authorized debit (ACH) and if you opt-in, CheckCard point of sale and ATM withdrawal on our member’s checking account even if it causes the account to become overdrawn.
2. The following parameters apply to Courtesy Pay (CP): a. In the aggregate, the total dollar amount of all overdrafts that FKFCU will honor will be no more than ½ % of total shares, excluding shares in corporate accounts. b. A time limit of not to exceed 45 calendar days is established for a member to either deposit funds or obtain an approved loan from FKFCU to cover each overdraft. c. A member may overdraft account no more than $500 (including service fees).
d. The fee for this service is the same as charged for non- sufficient funds and stop-pays. This fee may be changed by FKFCU from time to time.
3. CP may be extended to a member who meets the following criteria at the time the service is offered: a. Is at least 18 years of age and has a checking account open for at least 60 days with the minimum balance requirements and maintained in good standing. An account is considered to be in “good standing” if it, (1) Receives regular deposits to cover transactions; (2) Achieves a positive balance at least once every 30 days or less; (3) Has no legal claim present which affects access to or use of it, and (4) Has a valid address. b. Has a positive checking account balance. c. Has no charged-off loans or overdrawn accounts. d. Has no delinquent loan (15 days past due).
4. CP offers additional flexibility and convenience in managing account holders’ funds and provides peace of mind knowing that checks, automatic debits and, if opt-in, ATM withdrawals and CheckCard purchases may be paid up to the authorized overdraft limit. It allows FKFCU to provide a higher level of service to members by helping protect accounts and reputations when inadvertent overdrafts occur.
5. CP is non-contractual. It costs nothing unless the service/privilege is used by initiating a check, electronic funds transfer or other payment or withdrawal request for more than what is on deposit in the account. FKFCU, may at its sole discretion, pay item(s) up to the authorized limit and will charge the member the CP service fee for each item that overdraws the account.
6. Opt-in/out. You must opt-in to receive CP protection for CheckCard purchases and ATM withdrawals. You may change your option at any time. No action is required for CP protection on checks and automatic debits. Opt-out: An account may be removed from CP by a member who does not want this account protection.
7. An overdrawn item will be processed in the following order: 1st- From overdraft protection if set up from another account(s); 2nd- From Line of Credit if one exists; 3rd- At FKFCU’s discretion, from CP if member has service; and 4th- At FKFCU’s discretion, from Fee Schedule as an NSF item.
8. Disclaimer. FKFCU’s Courtesy Pay Program is a non-contractual courtesy and is discretionary. It is not an obligation of FKFCU and FKFCU may refuse to provide the courtesy on any checking account at any time and from time to time. Further, FKFCU reserves the right to discontinue the program, make changes to the program, change the fee for the program, or eligibility therein at any time without notice. Account holders do not have a contractual right to Courtesy Pay and Courtesy Pay is not guaranteed by the existence of a Courtesy Pay Program.