An overdraft occurs when you do not have enough money (as described in Section 4 of this Disclosure) in your checking account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:
The following explains our Overdraft Payment Service.
1. What comes with DCU’s Overdraft Payment Service if you opt-in and are approved?
DCU offers two different types of coverage based on the option you select when you opt-in.
If you opt-in to and are approved for Basic Overdraft Payment Service, we do authorize and pay overdrafts for the following transactions:
We do not authorize or pay overdrafts for the following transactions:
If you opt-in to and are approved for Full Overdraft Payment Service, we do authorize and pay overdrafts for the following transactions:
We authorize and 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.
Under our Overdraft Payment Service:
The paid transaction overdraft fee is the same amount that you would be charged if the transaction were returned. Please refer to DCU’s Schedule of Fees and Service Charges for information on overdraft, returned transaction, and other fees.
* This does not include debit card transactions previously authorized which DCU must honor.
You may opt-in or opt-out of DCU’s Overdraft Payment Service anytime by:
DCU uses your “available” account balance when determining whether a transaction overdraws your account.
Your DCU checking account has two types of balances: the “current” balance and the “available” balance. You generally have access to both balances when reviewing your account online, at an ATM, by phone, or at a branch; however, the available balance will only reflect transactions that have been authorized or posted to your account. This means that the available balance that you can review in your account will not necessarily reflect a check that you have written or electronic withdrawal that you have authorized, but which has not yet posted to your account. This makes it important for you to keep track of all transactions that you authorize, but which have not yet posted to your account.
The information below explains the differences between your current account balance and your available account balance and how an overdraft may occur when you do not have the necessary available balance in your account to cover transactions you have made.
It is very important to understand that you may still overdraw your account even though the available balance appears to show that there are sufficient funds to cover a transaction that you want to make.This happens because the available balance does not include certain transactions, such as scheduled Payment Center transactions, deposits with holds on them, checks that you have written but that have not yet cleared your account, and debit card purchases for which either the merchant did not submit an authorization hold or the merchant’s hold expired before the merchant submitted the transaction for settlement. You can avoid overdrafts by simply keeping close track of the money you spend regardless of how you spend it. Once you write a check, swipe or dip your debit card, authorize an electronic withdrawal, or use any other transaction method – you should mentally (or by hand in a register) subtract that dollar amount from the balance of funds in your account available to you to spend. For information on how DCU posts transactions to your account, refer to the Truth-in-Savings Disclosure and Account Agreements.
In order to initially be approved for Overdraft Payment Service and to remain eligible, you must be at least 23 years of age and a member in good standing with a DCU Checking Account open for a minimum of 90 days. Please understand that, although you may opt-in anytime, you will not be approved until these conditions are met.
Any negative balance in your checking account that results from DCU having paid a transaction that causes an overdraft must be repaid promptly. Negative balances not repaid promptly will result in you being suspended or terminated from access to the Overdraft Payment Service.
Everyone makes mistakes, but here are a few things members can do to avoid overdrafts:
For more information regarding overdrafts, go to dcu.org, call our Information Center 800.328.8797, or email us at [email protected]
View a pdf version of the Overdraft Payment Services Disclosure.