Options To Manage Overdrafts
While it is important for you to manage your checking account responsibly and to never intentionally overdraw your account, we realize that financial shortfalls happen from time to time. Life happens, and everyone can sometimes make a mistake or encounter financial challenges, so we have overdraft protection options to assist you in these situations.
What Is An Overdraft?
An overdraft occurs when you do not have enough available funds 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
Setting Up Automatic Transfers
One overdraft protection option we offer members is to set up automatic transfers from another designated account to cover the insufficient funds in your checking account. Below are options to consider. Give us a call at 800.442.2800, stop by a local member center, or start a chat with us to set this up for you.
Transfer From Another Account
You can set up an automatic transfer from a savings account, or another Honor checking account* to the checking account when there are insufficient funds.
Transfer From a Line of Credit or Credit Card
You can set up an automatic transfer from a line of credit, such as a home equity line of credit, or an Honor credit card to cover your overdraft.
If you have not set up automatic transfer, or if you have set it up but don’t have enough funds in your designated account(s) to cover the overdraft transaction, then Courtesy Pay would come into play. Courtesy Pay is a service extended on all eligible checking accounts in good standing that allows members to overdraw their accounts up to $1,000 (inclusive of fees) for checks, in-person withdrawals, recurring and one-time ACH transactions, and preauthorized automatic transfers.*
What To Know About Courtesy Pay
Courtesy Pay For ATM & One-Time Debit Card Transactions
Repayment of Courtesy Pay
^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?
If you have questions about setting up overdraft protection, or what option might be best for you, don’t hesitate to reach out to us. Simply, call, text, or chat with us, and our Virtual Member Center team can help!
* 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.