What is courtesy pay?
Courtesy pay is a service that adds a measure of protection to your checking account, and it may be used to cover your transactions when your available balance is insufficient. To add courtesy pay to your checking account now, please read the “Do I Have to Apply for Courtesy Pay?” section below to get started.
How courtesy pay can help me?
- Is your summer air conditioning bill out of this world? Instead of returning your utility bill check due to insufficient funds, the credit union may cover your bill. Save yourself additional charges from the utility company and keep your service from being interrupted.
- Don’t regret volunteering to make snacks for the whole class. When using your debit card at the grocery store, your transaction may be paid instead of being declined for insufficient funds. Get all your grocery necessities instead of having to pick and choose which items will go back on the shelf.
- Hit with a large, unexpected expense right before your car payment is set to be withdrawn? Rather than return your ACH payment due to insufficient funds, the credit union may cover your transaction. This keeps your credit history from being damaged and saves you the embarrassment of receiving collection calls.
How does courtesy pay work?
When a check, ACH withdrawal, ATM withdrawal, debit card transaction or over-the-counter teller withdrawal is presented for payment against your Energy One checking account, it may be paid using:
- The funds in your checking account
- The available balance in your line of credit (if applicable)
- Overdraft protection from your savings account (if applicable)
- Courtesy pay, up to a limit of $500 (including fees)
Once the first three options have been expended and courtesy pay is used to pay a check, ACH withdrawal, ATM withdrawal, debit card transaction or over-the-counter teller withdrawal, a fee of $29.00 will be assessed to your account for each item that draws your account negative based upon your account’s available balance. You then have up to 45 days to bring the account current, either through a direct deposit, transfer of funds, or a deposit at one of our branches.
This is the same amount as the fee that would have been incurred if the check or ACH withdrawal was returned for insufficient funds (NSF fee). But with courtesy pay, you will avoid any extra charges merchants add to a returned check or ACH withdrawal, the embarrassment of having a returned item, and potential harm to your credit.
Courtesy pay is offered as a privilege and Energy One reserves the right to return or reject transactions when sufficient funds are not available in your account or you are not a member in good standing.
How do I determine my available balance?
We use your “available balance” to determine whether there is enough money in your account to pay for a transaction. Your “available” balance may not be the same as your account’s “actual” balance. This means an overdraft or an NSF transaction could occur regardless of your account’s actual balance.
Your account’s actual balance (sometimes called the ledger balance) only includes transactions that have settled up to that point in time or posted to your account. The actual balance does not include outstanding transactions (such as checks that have not yet cleared and electronic transactions that have been authorized but which are still pending).
As the name implies, your available balance is calculated based on the money “available” in your account to make payments. The available balance takes transactions that have been authorized, but not yet settled, and subtracts them from the actual balance. In addition, when calculating your available balance, any “holds” placed on deposits that have not yet cleared are also subtracted from the actual balance. For more information on how holds placed on funds in your account can impact your available balance, or the payment order of items, please contact an Energy One representative.
What if I already have overdraft protection?
If you have established other overdraft protection methods, such as a line of credit or automatic transfer from your other accounts, we will always look to pay your item by those other methods first before paying your overdraft utilizing courtesy pay and charging a $29 fee for each overdraft we pay.
Do I have to apply for courtesy pay?
All eligible accounts are automatically enrolled in courtesy pay for checks, ACH withdrawals, reoccurring debit card transactions, and over the counter teller withdrawals. However, if you wish to use courtesy pay for one-time debit card transactions and ATM withdrawals, you will need to opt in. To opt in, please contact Energy One or you can OPT IN HERE. Premier One Checking, 1-2-3 Free Checking or Business Checking account holders will be eligible for courtesy pay so long as all signers are 18 years of age or older and are considered a member in good standing.
A member in good standing means:
- Checking account has been open for at least 90 days
- Checking account is brought to a positive balance at least once every 45 days
- Loans with us are not more than 30 days delinquent
- Account has a current mailing address
- You have no legal orders against your account
As long as the above criteria are met, your courtesy pay privilege will remain active.
What You Need to Know about Overdrafts and Overdraft Fees