Understanding Your Overdraft Options

At Public Service Credit Union, we understand that financial surprises happen. Sometimes, you may have insufficient funds to cover a transaction. That's why we offer two overdraft services designed to provide peace of mind and financial flexibility.

What Is An Overdraft?

An overdraft occurs when you attempt to withdraw more funds from your checking account than you have available, resulting in a negative balance. This can happen through:

  • Check payments

  • ACH transactions (automatic bill payments)

  • ATM withdrawals (opt-in)

  • Debit card purchases (opt-in)

  • Online bill pay transactions

Our Overdraft Services

Overdraft Protection

Overdraft Protection is an optional service that links eligible accounts to automatically cover overdrafts:

  • How it works: When you don’t have sufficient funds in your checking account, funds are automatically transferred from linked accounts to cover the transaction.

  • Linked accounts can include:

    • One share savings account

    • One Kwik Cash line of credit account

  • Benefits:

    • Prevents declined transactions

    • Covers most transaction types including ATM and debit card transactions, checks, bill pay, and recuring electronic payments

    • You can specify the transfer order (e.g., try savings first, then line of credit)

  • Important notes:

    • Line of credit advances accrue interest from the date of the advance

    • You must explicitly enroll in this service

    • This service is free (no transfer fees)

Courtesy Pay

Courtesy Pay is a discretionary service that provides a safety net for qualified members:

  • How it works: PSCU may pay transactions that overdraw your account, even when other overdraft protection methods are unavailable.

  • Qualification requirements:

    • Minimum waiting period of 60 days on new accounts

    • You must be at least 18 years old

    • Account cannot be classified as inactive

    • Current mailing address required

    • No credit union delinquency of 30+ days

    • Account cannot be under a legal order (levy, bankruptcy, etc.)

  • Important limitations:

    • $400 maximum Courtesy Pay limit per member

    • For ATM and everyday debit card transactions, you must opt-in to the service

    • There is a fee per item paid through Courtesy Pay (this fee can be found on our fee schedule which you can request from the credit union at anytime)

    • Negative balance must be repaid within 30 days

Responsible Account Management Tips

  • Monitor your account regularly through online and mobile banking

  • Sign up for balance alerts to stay informed about your account status

  • Consider setting up direct deposit for faster access to your funds

  • Keep track of all transactions, including scheduled automatic payments

  • Maintain a cushion in your checking account for unexpected expenses

  • Use Courtesy Pay as an occasional safety net, not as a regular source of funds.

Important Disclosures

Courtesy Pay is a discretionary, non-contractual courtesy and not an obligation of the credit union. PSCU may refuse to provide this courtesy on any checking account at any time. You have no contractual right to Courtesy Pay, and payment is not guaranteed.

The total Courtesy Pay (negative) balance, including all fees and charges, is due and payable within 30 days. All account owners and authorized signatories are jointly and severally liable for all such amounts, including fees.

For more information about our overdraft services or to opt in/out of these services, please contact the credit union.