Overdraft Coverage

UNOFCU understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.
The choice is yours. Consider these ways to cover overdrafts:

  • Overdraft Protection Link to your UNOFCU primary savings account (S-0) ($5.00 fee per transfer)

  • Line of Credit (Subject to interest; subject to credit approval)

  • Courtesy Pay Standard or Extended Coverage ($27 Courtesy Pay Fee per item presented*)

 *Per item presented means each time an item is presented, including re-presentment. 

OVERDRAFT PROTECTION AND LINE OF CREDIT options apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from your S-0 account or line of credit you have at UNOFCU for a fee or finance charge. Please note that lines of credit are subject to credit approval. Call us at (504) 280-6496, email us at unofcu@unofcu.org, or come by a branch to sign up or apply for these services.

COURTESY PAY is an option that allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection and/or a Line of Credit, Courtesy Pay is still available as secondary coverage if the other protection sources are exhausted. Please review What Else You Should Know for other important information.

Transaction Standard Coverage (No Action Required) Extended Coverage (Your Consent Required*)
Checks X X
ACH – Automatic Debits X X
Recurring Debit Card Transactions X X
At the Teller Window X X
ATM Transactions X*
Everyday Debit Card Transactions X*

If you would like to select Extended Coverage for future transactions:

Overdraft Coverage: What Else You Should Know

A link to your primary savings account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee instead of multiple smaller overdrafts. Use our mobile banking, online banking, and telephone banking services to keep track of your balance. We may use the terms “item” and “transaction” interchangeably. For additional financial education resources, please visit www.mymoney.gov.

  • The $27 Courtesy Pay Fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Courtesy Pay Fee or a Return NSF Fee of $27. All fees and charges will be included as part of the Courtesy Pay limit amount. Your account may become overdrawn more than the Courtesy Pay limit amount because of a fee.

  • There is no limit on the total Courtesy Pay Fees per day we will charge. We will not charge a Courtesy Pay Fee if the amount of the item is less than $5.

  • Recipients of federal payments who do not wish us to deduct the amount overdrawn and the Courtesy Pay Fee from funds that you deposit or that are deposited into your account may call us at (504)280-6496 to discontinue Courtesy Pay.

  • If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, UNOFCU will charge a Return NSF Fee each time it returns the item because it exceeds the available balance in your account. If on re-presentment of the item, the available balance in your account is sufficient to cover the item, UNOFCU may pay the item and, if payment causes an overdraft, charge a Courtesy Pay Fee.

  • This describes the posting order for purposes of determining overdrafts. Share drafts and ACH transactions post from lowest to highest dollar amount. PIN-based transactions post immediately, and signature-based debit card transactions post when received from the merchant. However, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Courtesy Pay Fees or Return NSF Fees assessed. 

  • We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result, you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s). 

  • Giving us your consent to pay everyday debit card and ATM overdrafts on your account (Extended Coverage) may result in you incurring Courtesy Pay Fees for transactions that we would otherwise be required to pay without assessing a Courtesy Pay Fee. However, this would allow us to authorize transactions up to the amount of your Courtesy Pay limit and may also help you avoid overdrafts in excess of your available balance. If you consent to Extended Coverage on your account, it will remain on your account until it is otherwise withdrawn. 

Understanding Your Available Balance

Your account has two kinds of balances: the Ledger Balance and the Available Balance.

UNOFCU authorizes and pays transactions using the Available Balance.

  • Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.

  • Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.

  • The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Courtesy Pay limit and any available Overdraft Protection.

  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Courtesy Pay limit.

  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Courtesy Pay limit.

  • Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction, but later, upon settlement, it may not be sufficient to cover such a transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your Available Balance.

  • Please be aware that the Courtesy Pay amount is not included in your Available Balance provided through online banking, mobile banking, or UNOFCU's ATMs.

  • We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, a Courtesy Pay Fee may be assessed.

  • Except as described herein, we will not pay items if the Available Balance in your account (including the Courtesy Pay limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Courtesy Pay Limits

  • New eligible checking accounts will receive a $100 Introductory Courtesy Pay limit at account opening that will be increased to $500 after 60 days in good standing. Second Chance checking accounts will receive a Courtesy Pay limit of $100 after 60 days in good standing.

  • Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

  • Courtesy Pay may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 35 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Courtesy Pay limit restored.

  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in our Membership Agreement and Disclosures. The total (negative) balance, including all fees and charges, is due and payable upon demand.


    If you have any questions about Overdraft Protection, Line of Credit, or Courtesy Pay, please call us at (504) 280-6496 or visit a branch.