Overdraft Protection
When life happens, whether it’s an unexpected expense or just a simple miss, our overdraft protection options can help you manage your finances, and ensure you never miss a payment.
What Is An Overdraft?
An overdraft occurs when you do not have enough money in your account to cover a transaction. Fortunately, Honor has various options to manage these situations when they occur. Which option you choose will determine how these overdrafts will be handled (whether the transaction is paid or not) and the resulting fee that will be charged to your account.
Examples of Account Overdrafts
- You use your debit card to make a purchase and the transaction total is more than your available checking account balance.
- You have automatic payments set up from your Honor checking account and the due date falls before your next payday.
- You have $200 in your account, and you have a pending debit card transaction for $150. Then, you spend more than $50 to cause an overdraft.
Setting Up Automatic Transfers
Transfer From Another Account
- Members can set up an automatic transfer from any of the following Honor accounts when there isn’t enough money:
- Regular or Special
- Share Savings Account
- Surge, Momentum, or Amplify Money Market Account
- Another Honor checking account.
- A convenience fee of $5 is charged for each transfer from these accounts
Transfer From A Line of Credit
- As a member, you can apply for a new personal line of credit to use for the overdraft protection, or you can add an existing Honor line of credit as an overdraft option.
- A line of credit is a loan and an application and approval is required.
- As with any loan, interest will be charged unless balances are paid in full.
- There is no convenience fee charged when using a line of credit as an overdraft protection.
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Courtesy Pay
Courtesy Pay allows eligible accounts to cover transactions when funds are insufficient, up to $1,000 including fees. It applies to checks, electronic payments, and debit card transactions if opted in. A convenience fee is charged. Availability isn’t guaranteed and depends on account standing.
^The checking account must be open for at least 30 days (this will be reflected in your second statement after account opening), and to be in “good standing” you must (1) be making regular deposits sufficient to cover transactions, (2) bring the account to a positive balance at least once every 30 days, and (3) not have any legal orders outstanding on the account.
Non-Sufficient Funds (NSF)
An NSF occurs when you don’t have the funds available in your checking account to pay one or more of your transactions, and you either (1) don’t have an Overdraft Protection option like an automatic transfer or Courtesy Pay in place, or (2) all funds have been exhausted from your designated transfer accounts and you’ve already exceeded your Courtesy Pay limit.
What Happens With an NSF?
- The overdrafted transaction is not paid by Honor and is returned unpaid.
- An NSF fee of $22 is charged for every returned transaction as disclosed on our Rates and Fees Schedule*
- You may also be charged an additional fee from the merchant for whom the payment was originally intended.
* An overdraft transaction must be $5 or more to generate an overdraft, courtesy pay, or NSF fee. We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. We use your available balance (not current balance) to determine whether sufficient funds are available when transactions attempt to clear the account and for determining whether to charge an overdraft or returned item fee. Click to view the Honor Credit Union Rates and Fees schedule.
