Mistakes happen, and we're here to support you. At Family First Credit Union, we offer Overdraft Protection to provide you with peace of mind in case of any unexpected shortfalls. Our Overdraft Protection is a Line of Credit, available in increments of $100, up to a maximum of $600, to cover any checks presented for payment. Qualification is required to access this service.
We also offer Overdraft Privileges to eligible members.
An overdraft occurs when you don't have enough funds in your account to cover a transaction.
To assist our qualified members and help avoid declined or unpaid transactions, we can cover your overdrafts.
To take advantage of this service, if eligible, you'll need to sign an OPT-IN form.
It's important to note that there are two sides to our Overdraft Protection: Automated Clearing House (ACH) transactions, where you provide your checking account and routing number for a payment, and Point of Sale (POS) transactions, which involve using your debit card for payments.
You must choose to OPT IN or out of BOTH sections individually.
Overdraft Privilege (ODP) applies to debit card transactions, and Occasional Overdraft Privilege Service (OOPS) applies to ACH transactions. These services are available at our discretion, which means we don't guarantee authorization and/or payment for all transactions. If we do not authorize or pay an overdraft, your transaction will be declined or returned as unpaid.
You have the flexibility to change your preferences at any time by submitting an overdraft form through your online banking account.
Our Overdraft Line of Credit (LOC) helps protect you from unexpected overdrafts by providing a revolving line of credit linked to your checking account which helps against returned checks and declined transactions. If your account balance is insufficient to cover a transaction, available funds from your line of credit may be used to help avoid returned items and keep your payments moving smoothly.
Credit limits range from $300 to $600 based on credit qualifications, with flexible access through your checking account. Once activated, a $50 monthly payment is required on outstanding balances. Contact the credit union for more information on how to apply 989.759.1686.
It's important to understand the difference between your Actual Account Balance and your Available Account Balance. With ODP and OOPS, all transactions are based on your Available Account Balance.
For instance, let's say you have an Actual Balance of $100, but there's a pending debit card transaction for $20. In this case, your Available Balance, the amount you can spend, would be $80. This is because $20 has been "claimed" and is unavailable for purchases or payments. However, your Actual Balance will still show $100 until the debit card transaction is officially posted. If you then use your debit card or approve an ACH payment for a $100 transaction, your activity will trigger your ODP/OOPS, and you will be charged an ODP/OOPS Fee.
Please note that by opting into our ODP service, you will be charged an overdraft fee for EACH transaction that occurs when you have insufficient Available funds at the time of the transaction. However, this fee can save you the hassle of declined or returned transactions when using your debit card or processing ACH payments. It could also potentially save you from incurring interest or late fees with the recipient of the payment, which might have been accrued if the transaction had been declined or returned.
Please be aware that overdraft items will be posted in accordance with Family First Credit Union's existing Overdraft Policy.
Rest assured, we're here to assist you during unexpected financial challenges.
