Courtesy Pay
Introducing Courtesy Pay and Courtesy Pay Plus
For over 20 years, Direct Federal has provided our members protection for unexpected checking account overdrafts. Specifically, when you overdraft your checking account, we will look to advance funds from your Direct Federal line of credit and/or your savings account in order to pay the transaction presented. Now, you will have yet another option to cover unexpected overdrafts, Courtesy Pay.
If you have written a check or processed an ACH payment that overdraws your checking, we will continue to look first to your line of credit and/or your savings balance to cover the transaction. If these two options are not sufficient, Courtesy Pay will pay the item by allowing you to overdraw your checking account up to $750. You will be charged the same $30 fee you would be previously charged as a non-sufficient fund fee, but instead of returning the item, it will be paid up to your Courtesy Pay limit.
The following table illustrates the order of your Direct Federal overdraft coverage:
| Order of Protection | Service | Transactions Covered | Cost | Action Required |
|---|---|---|---|---|
| 1 | Line of Credit – subject to credit approval |
Checks ACH ATM / Debit |
Interest on borrowed funds | If you don't already have a line of credit, click here to apply |
| 2 |
Sweep Protection – Uses savings balance at Direct Federal |
Checks ACH ATM / Debit |
$10 fee per transfer | NONE |
| 3 | NEW Courtesy Pay |
Checks ACH |
$30 Courtesy Pay fee per item* | NONE |
|
4
|
NEW Courtesy Pay Plus |
Checks ACH ATM / Debit |
$30 Courtesy Pay fee per item* | If you want Courtesy Pay Plus, please call 781.455.6500 |
*If the Courtesy Pay amount is less than $30 and you have a Hub checking account, the Courtesy Pay Fee will only be $10 per item. Hub accounts are checking accounts with e-statements and direct deposit, or checking accounts for members 65 years of age or older, or under age 25.
All checking accounts at Direct Federal come standard with Courtesy Pay, which includes checks, ACH (automatic debits), recurring debit card transactions, and telephone and internet banking transactions. You can discontinue Courtesy Pay in its entirety by contacting us at (781) 455-6500, sending us a secure email through online banking by selecting the “Secure E-Mail” tab, or visiting us at 50 Cabot Street in Needham.
You may also choose to have Courtesy Pay Plus to extend your overdraft coverage to ATM and everyday debit card transactions. Currently, when there are insufficient funds in your checking account, these transactions are not authorized and no fee is assessed. If you choose Courtesy Pay Plus, your same $750 overdraft limit will also be used to pay ATM and everyday debit card transactions, and the same $30 Courtesy Pay fee will be charged. If you would like to add Courtesy Pay Plus to your overdraft coverage, please call us at (781) 455-6500, send us a secure email through online banking by selecting the “Secure E-Mail” tab, or visiting us at 50 Cabot Street in Needham.
For additional information please review the attached "Information You Should Know" document.
