Having a check or a pre-authorized debit returned due to insufficient funds can be a costly or embarrassing situation. That’s why at ABE, we encourage you to avoid overdrafts and manage your finances responsibly. However, we want to save you from the embarrassment, additional merchant fees and possible damage to your credit history that might result if a check or pre-authorized debit is returned. That is why we provide Member Privilege™ , a special overdraft privilege for your checking share draft account. This program which is offered above and beyond any ABE overdraft protection you may currently have on your account, can help you when unexpected circumstances arise.
Here is how it works:
If you maintain you checking share draft in good standing (defined as making regular deposits and bringing your checking share draft to a positive balance at least once every 30 days and maintaining a current balance on all other accounts), Member Privilege™, may:
Honor overdrafts up to $750.00. This includes a member privilege fee of $29.00 for each item.
We will notify you via mail or email if an overdraft occurs.
No interest will be charged on the overdraft balance.
Your Member Privilege™ limit will be available to you by writing a check, pre-authorizing an ACH Debit or making recurring debit card transactions. However, your limit will not be included in the balance provided by a teller, at the ATM or through Member Web Connect or Telephone Audio Response.
Member Privilege™ is just one more service ABE Federal Credit Union offers to bring added convenience and service to our members.
ABEFCU Member Privilege Overdraft Policy
There are several ways your account can become overdrawn, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you (i.e. signature-based point of sale transactions); (3) the return of unpaid items deposited by you; (4) credit union service charges; or (5) the deposit of items which, according to the credit union’s Funds Availability Policy, are treated as not yet available or finally paid.
While we are not obligated to pay any item presented for payment if your account does not contain enough money, as long as you maintain your account in “good standing,” we may approve your overdraft items within your current available Member Privilege limit as a non-contractual courtesy. For overdraft privilege consideration, your account is in “good standing” if you (1) deposit enough money to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all credit union fees and charges); (2) avoid excessive overdrafts suggesting the use of Member Privilege as a continuing line of credit; and (3) have no legal orders, levies or liens against your account.
In the normal course of business, we generally pay electronic transactions first and then checks beginning with the lowest dollar amount, per the credit union’s policy. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, please be aware that the order we pay your items in may create multiple overdraft items in a single credit union day and you will be charged our Courtesy Pay fee of $29 for each overdraft item paid.
You may opt out of the privilege at any time, but you are responsible for any overdrawn balances at the time of opting out. Normally, we will not approve an overdraft for you in excess of the predetermined amount assigned to your account type. So as not to exceed your limit, please note that the amount of the overdraft plus the credit union’s Courtesy Pay fee of $29 per item will be deducted from the overdraft limit.
We may refuse to pay an overdraft item at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft items if your account is not in good standing as defined above, or, if based upon our review of your account management, we determine that you are using Member Privilege excessively or seem to be using Member Privilege as a regular line of credit. You will be charged a NSF fee of $32 for each item returned.
We will notify you promptly of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdraft including our Courtesy Pay fee of $29 and/or a NSF fee of $32 that you owe us is due and payable upon demand. Even if we do not ask you for payment, you must repay us, no later than 30 calendar days after the creation of the overdraft. If there is an overdraft on an account with more than one owner on the signature card, each owner and agent, if applicable, is jointly and severally liable for all overdrafts including all fees charged.
Member Privilege should not be viewed as an encouragement to overdraw your account. To avoid fees, we encourage you to keep track of your account balance by entering all items in your check register, reconcile your checkbook regularly, and manage your finances responsibly. If you would like to have this service removed from your account, please call your local ABE FCU branch.
Please note that your Member Privilege limit may be available for each item paid under the limit created by checks and other transactions made using your checking account number, such as an automatic payment (ACH) transaction, or automatic bill payment and recurring debit card payment. Also, at your request, we may authorize and pay everyday debit card purchases using your limit. Your available balance may be affected by authorizations which could create additional overdrafts and associated fees. When you ask for your account balance, please remember the amount we show you does not include your overdraft limit.
LIMITATIONS: Member Privilege is a non-contractual courtesy that is available to individually/ jointly owned accounts in good standing for personal or household use. ABE FCU reserves the right to limit participation to one account per household and to suspend, revoke, or discontinue this service without prior notice. If your limit is suspended, unless we notify you otherwise or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.