Overdrafts and Overdraft Protection Options

What You’ll Learn  

• See the overdraft protection options available to you as a Salal member.
• Get more info about Salal’s overdraft procedures and policies. 

We know life gets busy—and your monthly finances can get complicated. Overdrafts can happen from time to time. That’s why we offer several overdraft protection options¹ to help you avoid the hassle of overdrafts and keep your payments or purchases from being declined or returned.

Courtesy Pay

Courtesy Pay Basic

Courtesy Pay Basic overdraft protection comes standard with all eligible accounts. It covers checks and recurring ACH transactions unless you opt out of the service. Your account must be in good standing to qualify. Pathway Checking accounts are ineligible. For more info on eligibility, see the FAQs below.

Courtesy Pay Plus

With Courtesy Pay Plus, you get the coverage of Courtesy Pay Basic, along with ATM and one-time debit card transactions. This can be useful in emergencies when you need to access cash or make a purchase. You need to opt in for Courtesy Pay Plus. Once opted in, you can opt out at any time.³

How to opt in or out of Courtesy Pay:

You can opt out of Courtesy Pay Basic at any time³. You can opt in or out of Courtesy Pay Basic or Plus in the following ways:

• In digital banking—find Courtesy Pay under the Self-Service menu. 

• • Send us a secure message in digital banking.
  • Call 800.562.5515.
  • Visit a Salal branch.
• By mail via this form. 

Overdraft Transfer Protection

You select another Salal account to be your overdraft backup. When a check, ATM withdrawal, or other electronic transaction comes through that will overdraft your account, funds are automatically transferred from your backup account. For your backup account, you can select another Salal checking, savings, or money market account⁴. You can also use your Salal EZ Line of Credit, credit card, or Custom Fit Home Equity as your overdraft transfer funding source⁵. 

How to opt in or out of Overdraft Transfer Protection:

You need to opt-in for this service. You can do so at the time of account opening. To opt in or out later, send us a secure message in digital banking, call 800.562.5515, or visit a Salal branch.

Overdrafts and Overdraft Protection FAQs

What is an overdraft?

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay the transaction for you. These transactions include checks, debit card purchases, or ATM withdrawals. See the beginning of this article for more details on the overdraft protection options available to you.

In what order are my transactions processed?

We usually process and post debits to your checking account throughout the day in the following order.

• PIN-based debit card transactions—posted in real-time (as the transaction occurs).
• Signature-based debit card transactions—posted daily in the order received from our network processor.
• ACH—posted daily from lowest to highest dollar amount.
• Checks—posted nightly from lowest to highest dollar amount.

What are the eligibility requirements for Courtesy Pay Basic and Courtesy Pay Plus?

To be eligible, you must be at least 18 years old and be a member in good standing. A member in good standing meets the following requirements:

• You don’t have a negative available balance in a Salal account for more than thirty (30) consecutive days.
• You aren’t more than 30 days delinquent on any Salal loan.
• You don’t have a modified loan with Salal.
• You’re not subject to any legal or administrative order on a Salal account.

Because Courtesy Pay Basic or Courtesy Pay Plus are discretionary services, we reserve the right not to pay your overdrafts. We typically do not pay overdrafts if your account is not in good standing. Pathway Checking is not eligible for Courtesy Pay Basic or Courtesy Pay Plus.

What happens if I have an overdraft, and what are my responsibilities?

You will get a notice if a payment isn’t made or if we cover a payment for you because your account doesn’t have enough money to cover the transaction. 

If you have opted into one of our overdraft protection options,  your transaction may be covered, and you will be charged the applicable fee. If you have opted out of any overdraft protection, your transaction will be declined. 

If we cover your overdraft through Courtesy Pay Basic or Courtesy Pay Plus, you will be expected to deposit funds as soon as possible to return your account to a positive balance. This includes the amount of the transaction(s) and any overdraft transfer, overdraft, or Courtesy Pay fees, all of which will be due and payable on demand or within 30 days of the overdraft occurrence. If you fail to make the needed deposit within the timeline we specify, we may close your checking account. Accounts closed because of a continued negative balance are reported to a consumer agency and might impact your chances of opening new accounts in the future.

How much will you charge me for an overdraft?

If we cover your overdraft transaction through Courtesy Pay Basic, Courtesy Pay Plus, or Overdraft Transfer Protection, you may be charged a fee.

• If your overdrafting transaction is over $5, you may be charged a $29 fee per overdraft.
• If you have one or more overdrafting transactions and your account’s available balance becomes overdrawn more than -$25, you may be charged a $29 fee per overdraft.
• If you have multiple overdrafts in one day, you will be charged no more than $116 total in overdraft fees per day.

You must bring a negative balance in your checking account to a positive balance within 30 days of the overdraft occurrence. For more info, refer to the Consumer Product & Fee Disclosure in our Forms and Disclosures Library.

What if I choose not to be covered by any of the overdraft protection options?

If you choose to opt out of all overdraft protection coverage:

• Your overdraft checks and ACH transactions will be returned and not paid.
• Your overdraft ATM and debit transactions will be declined with no additional fee.
• Merchants may assess returned item fees.

What are the standard overdraft practices that come with my account?

Courtesy Pay Basic comes standard with all eligible accounts unless you opt out. For more details on eligibility, see “What are the eligibility requirements for Courtesy Pay Basic and Courtesy Pay Plus?” in this FAQ section above. See the beginning of this article for more details on the overdraft protection options available to you and what transactions may be covered.

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transactions. If we do not authorize and pay an overdraft, your transaction will be declined.

How can I better monitor my account to avoid overdrafts?

We offer tools to help you keep tabs on your checking account and prevent unnecessary overdraft fees:

Mobile & Online Banking. Salal’s digital banking makes it easy to monitor your accounts as often as you like. Keeping a close eye on your available account balance can help you avoid overdrafts and declined transactions. Sign up for digital banking here or by calling us at 800.562.5515.

Alerts. Also available in digital banking, you can set up an alert to be notified when your account balance drops below an amount you’ve set. If you use Bill Pay, the “eNotifications” and “Reminders” features notify you of payments and transfers, so you are aware of how much money remains in your account.

BALANCE Financial Fitness. Salal has partnered with BALANCE to offer all members free, confidential counseling on money matters. Get help budgeting, understanding credit, saving for a down payment, or finding ways out of debt. Learn more about BALANCE Financial Fitness.

What other ways can I make purchases and payments besides using my checking account?

Money orders and cashier’s checks. Unlike regular checks, where the money is debited from your account when the check is deposited by the payee, money orders and cashier’s checks must be purchased from the credit union in the amount you need. This can reduce confusion over how much money is left in your account. While money orders and cashier’s checks come with a small fee, they are less expensive than overdraft fees. 

Savings account and ATM card. With a Salal savings account, you can earn interest while retaining access to your funds via Salal ATMs or making an in-branch withdrawal⁴. You can also use your savings account to purchase money orders and cashier’s checks.