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Frequently Asked Questions about the Opt-in Process
- What is changing?
- What is an everyday debit card transaction?
- What is overdraft protection?
- What is Courtesy Pay?
- What alternative ways does Interra offer to cover an overdraft?
- What transactions does Courtesy Pay cover?
- If I don’t qualify for Courtesy Pay, why should I opt-in
- If I don’t have a debit card, why should I opt-in?
- Does this affect me if I always keep enough money in my account to cover my transactions
- How do I opt-in?
- Why opt-in?
- What if I don’t complete the opt-in form?
- What other benefits does the credit union offer to help with avoiding overdrafts?
- If I opt-in now, may I opt-out in the future?
- May I then opt-in again in the future?
- What if I don’t want the Courtesy Pay service on my account (Courtesy Pay Waiver)?
- What is the difference between a recurring debit card transaction, an ACH transaction and a one-time debit card point of sale transaction?
What is changing?
New federal regulations give additional options regarding overdrafts. It is now necessary that you opt-in or opt-out of the payment of everyday debit card transactions in cases where such payment will result in your account being overdrafted. If you wish to continue authorizing the credit union to pay such transactions after August 15, 2010, you must opt-in. If you do not opt-in the credit union will deny everyday debit card transactions if you do not have sufficient funds to cover them.
What is an everyday debit card transaction?
Generally, an everyday debit transaction is when you use your debit card or card number to make a purchase at a gas station, store, restaurant, or other merchant, or by the phone or the internet. Using your debit card to authorize automatic payment of a recurring bill, such as a utility bill, is not considered an everyday debit card transaction.
What is overdraft protection?
If your checking account is linked to your savings or money market account, or line of credit, we will first attempt to automatically transfer funds from them into your checking account to avoid an overdraft situation.
In order to obtain or modify overdraft protection, contact an Interra representative at 574.534.2506 or 888.432.2848 or visit any Interra office to complete a simple form. It only takes a moment, and will remain in effect until you inform us otherwise.
What is Courtesy Pay?
When you don't have overdraft protection established, and there aren't enough funds available in your checking account to clear your paper checks or electronic transactions, Interra may cover your inadvertent overdrafts up to $500* for members who qualify. This is called Courtesy Pay, as it protects you from insufficient funds charges and returned checks/electronic debits, and can also help protect your good credit and save you from embarrassment and the possibility of additional fees.
Although there is no fee to enroll in our Courtesy Pay service, there is a $25 fee each time an overdraft occurs and we pay it instead of returning it for insufficient funds. This $25 fee avoids additional returned check/payment fees charged by merchants. Courtesy Pay is not a loan, and all fees and the overdraft amount (negative balance) are due and must be repaid to us in accordance to our Courtesy Pay Disclosure.
For members who qualify, Courtesy Pay is provided as a backup to the overdraft protection services mentioned herein. If an item is returned, not only are there usually NSF fees charged (whether it is paid or not), but there may also be expensive fees and other ramifications from the merchant. The Courtesy Pay program was intended to save you money and embarrassment in these situations.
*Courtesy Pay limits may be granted at our discretion. Courtesy Payment of an inadvertent overdraft is not guaranteed and is paid at the Credit Union's sole discretion. Please refer to our Courtesy Pay Disclosure for further information.
What alternative ways does Interra offer to cover an overdraft?
There are other less expensive overdraft options than Courtesy Pay that we offer. For example, we offer alternative options for setting up a link from your savings account(s). Some financial institutions may charge a fee for transferring funds from your savings to cover your checking account each time you overdraw your account, but Interra does not; this is a free service. Please remember that federal regulation requires Interra to limit automatic withdrawal to 6 transactions per month on savings accounts (Regulation D).
Another option would be to apply for an Interra checking line of credit. A line of credit comes with a low interest rate that you only pay on outstanding balances used. We encourage you to set up these services as the first and second options for overdraft protection as they will be less expensive than the Courtesy Pay service.
What transactions does Courtesy Pay cover?
Our standard courtesy pay service does authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account number, including checks cashed at a teller window
- Automatic bill payments
- Recurring debit card transactions
- Automated Clearinghouse (ACH) withdrawals – like a utility bill that is automatically paid from your checking account each month
We do not authorize and pay overdrafts for ATM transactions.
Effective August 15, 2010, we will not authorize and pay overdrafts for everyday debit card transactions unless you ask us to. Therefore, if you want your Courtesy Pay coverage to include protection from overdraft situations on everyday debit card transactions you MUST opt-in.
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.
If we do not authorize and pay an overdraft, your transaction will be declined.
If I don’t qualify for Courtesy Pay, why should I opt-in?
You may qualify in the future and this will ensure you may take advantage of that opportunity. You may call us periodically to determine if your status has changed.
If I don’t have a debit card, why should I opt-in?
You may wish to have a debit card in the future and by signing the opt-in now you would save time and you would conveniently have your debit card transactions covered by Courtesy Pay if you qualify.
Does this affect me if I always keep enough money in my account to cover my transactions?
It might. To understand how, you should know about debit holds. You may have experienced a debit hold without even knowing it. For instance, if you use your debit card at a gas station, the transaction will be authorized before you can start the pump. At the time of the authorization it is not known how much gas you will buy. So the gas station will obtain authorization for a selected amount, such as $50, and a debit hold will be placed on your account for that amount. Depending on the technology used, that debit hold may remain on your account for an extended period of time, even if your purchase was for a lesser amount. Because of this, you may have more money in your account than the records show, and we may have to deny a transaction even though you have sufficient money in your account.
How do I opt-in?
If you want us to also authorize and pay overdrafts on everyday debit card transactions, you must opt-in, using one of the options below.
- Submit your preference online
- Complete and return the form you received in the mail:
- To any Interra office
- By mail to PO Box 727, Goshen, IN 46527
- By fax to 574.975.3221
- Call the credit union and indicate your preference at 534.2506 or 888.432.2848
Why opt-in?
A natural question credit union members have is, “Why should I opt-in?”
Simply put, overdraft programs are designed for consumer protection and convenience. The vast majority of consumers do not incur overdraft fees; however, overdrafts do occur. Without an overdraft protection program, consumers who attempt to make transactions without sufficient money in their accounts to cover the purchase could have their debit cards rejected by the retailer.
Interra’s Courtesy Pay program is a valuable service designed to help you in case of financial emergencies and unexpected expenses. This service provides greater flexibility in managing your money. The only time you pay a fee for this service is when you use it.
You should opt-in to overdraft protection services to ensure that your credit union can continue providing the services and convenience you currently enjoy, and to avoid potential hardships in the event that overdrafts occur. There is no fee for opting-in, only a fee of $25 if and when you happen to overdraw the account.
Whatever your decision, the new overdraft rules give you flexibility. If you opt-in, you can cancel at any time. If you do not opt-in, you can do so later.
What if I don't complete the opt-in form?
We will not be able to pay debit card transactions for you when your account does not have sufficient funds to cover these types of transactions. For instance:
- When you are standing in line at the grocery store and your purchase exceeds your account balance, your debit card transaction will be refused.
- When you have the need to fill a prescription at the pharmacy before payday and do not have the funds, your debit card transaction will be refused.
- When your vehicle is on empty and you are at the gas station attempting to fill-up but your account does not have enough funds, your debit card transaction may be refused.
If you utilize our Courtesy Pay service, but do not opt-in, you will continue to receive the benefits of that service associated with written checks, bill pay, ACH transactions and recurring debit card payments. However, to retain the maximum protection and significantly reduce the chances of being declined at a purchase, it would be beneficial to "opt-in" for the additional coverage.
What other benefits does the credit union offer to help with avoiding overdrafts?
Interra will continue to pay items in the order they are received, unlike some financial institutions that pay the largest item first.
If I opt-in now, may I opt-out in the future?
Yes. You are free to opt-out at any time.
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May I then opt-in again in the future?
Yes. You may opt-in by completing our standard opt-in form or by contacting the credit union.
What if I don’t want the Courtesy Pay service on my account?
If you do not want the standard Courtesy Pay service or coverage for everyday debit card transactions, you may request a Courtesy Pay Waiver to have the service removed from your checking account altogether. Any joint owner of the account may authorize this. To request this waiver please provide notice to us in writing, and return it to us via fax at 574.975.2331, or mail to Interra Credit Union, PO Box 727, Goshen, IN 46527.
What is the difference between a recurring debit card transaction, an ACH transaction and a one-time debit card point of sale transaction?
A recurring debit card transaction is a transaction initiated with a debit card that recurs on a regular basis. Examples include a utility bill or gym membership automatically paid monthly with your debit card number.
An ACH transaction is one which you have pre-authorized to automatically come out of your checking account on a regular basis (i.e. monthly payment for gym membership). Courtesy Pay protection of these transactions is automatically provided for all qualifying members.
An everyday debit card point of sale transaction is a retail transaction initiated with a debit card. Courtesy Pay protection of these transactions requires members to opt-in, otherwise the transactions will be declined.
