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Courtesy Pay FAQ

Sometimes things don't go as planned. When this happens with your checking account it can be embarrassing. Our Courtesy Pay program helps you avoid the embarrassment and inconvenience of unnecessary merchant fees caused by an item returned for insufficient funds or even a rejected debit card purchase.

What is Courtesy Pay?

Courtesy Pay is a value-added service that pays your checks, preauthorized debits, debit card purchases or make ATM cash withdrawals up to a pre-determined limit instead of returning them when your account has insufficient funds.  In many cases, you can end up paying twice as much in merchant fees than with our Courtesy Pay.  In addition to these cost savings, you experience peace of mind knowing that your check is covered.

Only members who have "opted in" to Courtesy Pay have coverage for ATM and debit card transactions. If you do not opt in, we decline the ATM and debit card transactions when you do not have enough funds in your account to cover them.

The opt-in rule does not apply to Courtesy Pay coverage on checks or automatic bill payments that you have set up to pay your mortgage, rent or utilities. We automatically provide overdraft services for these types of transactions. If you do not want overdraft services in these instances, please call the Credit Union.

What are the qualifications for Courtesy Pay?

You must be an Atlantic Federal Credit Union member with a checking account.

Courtesy Pay may only be added to an account after 90 days as long as the account is "active" (ex. Direct deposit, debit card transactions, ACH, etc.)

You must be a member in good standing, which means all loans must be current. We 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.

For those using the Courtesy Pay Service, good standing also means that you meet the repayment requirements as described below.

How much does this service cost?

Please see our Fee Schedule.

The opt-in rule does not apply to Courtesy Pay coverage on checks or automatic bill payments that you have set up to pay your mortgage, rent or utilities. We automatically provide overdraft services for these types of transactions. If you do not want overdraft services in these instances, please call the Credit Union.

What do you mean by a "paid" item?

The Courtesy Pay Service applies to checks you write from your checking account; when you authorize a merchant to automatically charge your account for a service or purchase; using your debit card for purchases; ATM withdrawals; and using one of our branch offices to access the Courtesy Pay Service.

What is the Courtesy Pay limit?

Your limit depends on your overall account relationship with us as defined by our Member Merits Program; if you have Premier status your limit is $750.00; for an Enhanced status your limit is $500.00; and with Value status your limit is $300.00. All allowable limits include Courtesy Pay fees. Regardless of your Member Merits status, the Courtesy Pay fee is the same (see Fee Schedule).

How does this work with my other overdraft options such as transfer from shares and Overdraft Line-of-Credit?

When an item is presented for payment, we will first check availability in your Overdraft Line-of-Credit Loan, if applicable. We will then check to see if there are available funds in any share accounts that you have designated for overdraft transfers. If the item cannot be paid from either of these options, the item will be covered by Courtesy Pay if you meet the qualifications. The available balance from all sources must be sufficient to cover the amount of the paid item plus the courtesy pay fee; otherwise, the item will be returned for insufficient funds and an applicable return fee charged.

How do I know when Courtesy Pay is accessed?

You will be notified by mail each time Courtesy Pay covers an item. It will also appear as a fee entry in Home Banking and on your account statement. It will be identified as "PAID NSF FEE."

What happens if I go over the Courtesy Pay limit?

If you go beyond the Courtesy Pay limit, your checks beyond the limit will be returned to the appropriate merchants. You will be responsible for returned check charges from the merchants and from the Credit Union.

How soon do I need to deposit funds for the items covered by Courtesy Pay?

You have 15 calendar days from the date each covered transaction is posted to your account to repay the transaction amount and Courtesy Pay fee. For example, if you access Courtesy Pay for one item on day 1, a $35 fee is charged to your account and full repayment of the transaction amount and fee is due by day 16. Failure to repay by day 16 will result in a $35 late fee. If you access Courtesy Pay with two additional transactions on day 2, two $35 fees are charged and the full repayment of those two transactions and fees is due by day 17. Failure to repay by day 17 will result in two additional $35 late fees. If a covered transaction and associated fees are not paid by the 30th calendar day after it was paid, the checking account is subject to closure and reported to a credit reporting agency.

What if after opting in, I no longer want to participate in the Courtesy Pay service?

You may opt-out of the Courtesy Pay Service at any time by contacting a member service representative at (800) 222-1329.

Atlantic Federal reserves the right to revoke Courtesy Pay privileges at anytime without prior notifications and to deny the payment of any transaction.