Important Information Regarding Courtesy Pay Overdraft Service
Due to government regulations, starting July 1, 2010, TOPCU will not be able to cover overdrafts related to debit or ATM cards using our standard overdraft practice, Courtesy Pay, unless you have opted in to this service.
There are two ways to protect your account(s). TOPCU has standard overdraft practices and overdraft protection plans. Our standard overdraft practice is called Courtesy Pay and may or may not be available to all members. Overdrafts are paid using Courtesy Pay at the discretion of the credit union which means we will not always authorize and pay transactions. Because of this, we encourage all of our members to have an overdraft protection plan. We have two options for overdraft protection plans: link to another deposit account or a reserve line of credit which requires a credit application
The new regulation from the government requires TOPCU to now have our members opt in to standard overdraft practices (Courtesy Pay) that are related to plastic card purchases and ATM transactions.
If you currently have an overdraft protection plan in place, it will not be impacted. However, if you do not opt in to the standard overdraft option and you do not have funds available through your overdraft protection plan then your transaction will be denied.
If you are purchasing groceries with your debit card but do not have the funds in your account to cover the transaction, would you like TOPCU to cover the transaction? If your answer is yes, please take the time to complete and return the Overdraft Opt-In form located here. You can drop your completed form off at any of our branches or mail it to:
Tucson Old Pueblo Credit Union Attn: Marketing 2500 E 22nd St Tucson, AZ 85713
If you do not complete an Overdraft Opt-In form, we assume that you are opting-out of Courtesy Pay. When you do not have enough money in your account, we will deny your debit card purchases or cash withdrawals at ATMs.
The Overdraft Opt-In form has more details about our overdraft services, but if you have questions or concerns about this information, please contact us at 520-881-6262 or stop by one of our branches.
Frequently Asked Questions
Why is TOPCU making these changes? The Federal Reserve Board published a rule under Regulation E that requires credit unions to provide members the right to opt-in to overdraft service for ATM and one-time debit card transactions.
Are all overdrafts affected by this change? No. The change only applies to ATM transactions and everyday debit card transactions. TOPCU will continue to authorize and pay overdrafts for checks and automatics bill payments without your consent to opt-in. A fee of $30 per item is charged for overdrafts related to checks and automatic payments.
Are all member accounts affected by this change? No. The changes only apply to consumer accounts. Business accounts are not affected.
What is an overdraft? An overdraft occurs when a member withdraws more money from their checking account than their available balance.
What does the term “non-sufficient funds” mean? This situation occurs when a member does not have enough money deposited in their account to cover all checks or electronic withdrawals they have authorized or have funds from deposits that have not been collected.
What is Courtesy Pay? Courtesy Pay is part of TOPCU’s standard overdraft practices. Courtesy Pay is designed to help a member if they make an error in calculating their available account balance. Payment by the credit union is a discretionary courtesy and not a right of the member or an obligation of the credit union which means we do not guarantee we will always authorize and pay a transaction. This privilege for checking accounts is limited to a maximum amount of $1,500 overdraft (negative) balance. Transaction types that are eligible for courtesy pay include and are limited to: checks, ACH transactions, PIN-based debit transactions and signature-based debit transactions. ATM transactions are excluded. You must bring your account balance to a positive balance within ten (10) business days for a minimum period of 24 hours to remain eligible. The credit union, at its discretion, can cancel this protection and cease paying overdrafts at any time without prior notice of reason or cause. The current fee for courtesy pay is $30 per item.
What will happen if I do not respond to the opt-in notice sent out by TOPCU? If you do not respond to the opt-in notice you will be automatically opted-out of our standard overdraft practices for ATM cards and everyday debit card transactions. This means that if you do not have an overdraft protection plan on your account, your transactions will be declined if you do not have the money available in your account.
What is the difference between available balance and current (account) balance?__ The current balance is the amount of money that is in your account. The available balance reflects transactions that are pending. For example, if your had $100 in your account and used your debit card to buy $20 worth of groceries, the terminal at the store sends a message to TOPCU that you want to spend $20. TOPCU would authorize the transaction and would put that money aside for a period of time. That withdrawal is pending, and comes out of the current balance, leaving you with an available balance of $80.
What overdraft protection plans are available? TOPCU offers members two options for overdraft protection. Members can link their account to another deposit account or can apply for an overdraft line of credit. Overdraft lines of credit are subject to approval.
I already have an overdraft protection plan. Do I still need to respond? Maybe. Your current overdraft protection plan will not change but you still need to respond if you would like to opt-in to our standard overdraft practice regarding ATM and debit cards. The standard overdraft practice would only be used if your selected overdraft protection plan were not available. For example, if you have your checking account linked to your savings account for overdraft protection and the funds were not available in either account then the standard overdraft practice could be used if you are opted-in.
What is the difference between a PIN-based (debit) and signature (credit) transaction? When you make a purchase there are two ways money can be taken from your account using your card; one is PIN-based (debit) and the other is signature-based (credit). They both take the money from the account however, they are pulled out differently. PIN-based (debit) requires you to enter your PIN and pulls the money out of the account balance right away. Signature-based puts the funds on hold, affecting your available balance, and typically won’t be deducted from your account balance for a few days.
Why is the authorized amount of my purchase different that my actual purchase amount? This situation typically occurs when you use your card for a signature-based (credit) transaction. For example, gas stations typically authorize your card for $1 and then process the transaction for the actual amount. This can also happen in the reverse. Hotels typically place a hold on your card for more than the amount of your room. For example, they may hold a deposit of $300 on your account and then process your transaction for $100. Authorization holds placed by vendors affect the available balance on your account and could cause you to overdraft your account.
I have a joint account. Does my choice affect everyone on the account? Yes. In fact, your choice affects all accounts under each member number.
What is the difference between my member number and my account number(s)? As a member owner of TOPCU, you are assigned a member number. Under each member number are account numbers that are distinguishable by the suffix. For example, your member number is 12345 and your checking account number is 12345 – S71.
Can I change my choice at any time? Yes. You can change your choice at any time by completing a standard overdraft protection opt-in form.
I have more questions. Where can I get answers? TOPCU has more information posted on our website, www.topcu.org, or you can call us at (520) 881-6262 ext. 702. You can also email questions to email@example.com. For your security, please do not include any personal account information in your e-mail.