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Overdraft Options

Overdraft Coverage Options 

The choice is yours. Consider these ways to cover overdrafts:

SERVICE COST
Overdraft Protection Link to Another Share Account you have at IBMSECU $7 Overdraft Protection Fee per transfer
Overdraft Protection Link to a Cash Advance on your IBMSECU Credit Card Subject to interest
Overdraft Protection on your existing Line of Credit Subject to interest
Overdraft Privilege (ODP) $32 Overdraft Privilege Fee per item.

Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another share account, cash advance, or existing line of credit you may have at IBMSECU for a fee or finance charge. Call us at 800.873.5100, email us at serviceplus@ibmsecu.org or visit your local branch to sign up or apply for these services. Please note that cash advances may be subject to credit approval.

Overdraft Privilege allows you to overdraw your account up to your disclosed limit for a fee in order to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege (ODP) is still available as secondary coverage if the other protection source is exhausted.

 

Transactions Covered with Overdraft Privilege Standard Coverage
(No action required)
Extended Coverage
(Your consent is required)*
If you would like to select Extended Coverage for future transactions:
 
  • Call us at 800.873.5100
  • Log in to Online Banking. Click on the “All Services” tab, choose “Overdraft Privilege,” and make your selection.
Checks X X
ACH – Automatic Debits X X
Recurring Debit Card Payments X X
Bill Pay Items X X
Teller Transactions X X
Everyday Debit Card Transactions X*

*If you choose Extended Coverage, everyday debit card transactions will be included with the transactions listed under Standard Coverage.

How To Get Extended Coverage

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

  • Call us at 800.873.5100;
  • Log into your account on Online Banking at ibmsecu.org. Click on the “All Services” tab, choose “ODP Privilege” and make your selection;
  • Visit any branch near you;
  • Email us at serviceplus@ibmsecu.org;
  • Complete an Overdraft Extended Coverage Consent Form and then return it to the Credit Union.

You can discontinue Overdraft Privilege in its entirety by contacting us at 800.873.5100 or sending us an email at serviceplus@ibmsecu.org.

What Else You Should Know

  • A link to another share account or a line of credit is a less expensive option than an ODP. A single larger ODP will result in just one fee, as opposed to multiple smaller ODPs. Good account management is the best way to avoid ODPs. Use Online Banking or Mobile Banking at ibmsecu.org to keep track of your balance.
  • The $32 Overdraft Privilege (ODP) Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate ODP Fee or a Returned Item Fee for Non-Sufficient Funds (NSF) of $32. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege (ODP) limit amount as a result of a fee.
  • There is a limit of 5 Overdraft Fees – $160 per day that we may charge.
  • We generally post items in the following order: 1) credits, 2) ATM, debit card transactions and ACH debits in the order received, 3) checks (check number order); however, exceptions may occur. Holds on funds described below and the order in which transactions are posted may impact the total amount of ODP Fees or Returned Item Fees assessed.
  • Although under payment system rules, IBMSECU may be obligated to pay some unauthorized debit card transactions, IBMSECU will not authorize debit card transactions unless there are available funds, including ODP coverage options, to cover the transactions and any fee(s).
  • Giving us your consent to pay every day debit card Overdrafts may result in you incurring ODP Fees for transactions that we would otherwise be required to pay without assessing an ODP Fee. However, this would allow us to authorize transactions up to the amount of your ODP limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
  • IBMSECU authorizes and pays transactions using the available balance in your account. The available balance is comprised of your actual balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. IBMSECU may place a hold on deposited funds in accordance with our Membership Disclosure. If the funds in the available balance are not sufficient to cover a transaction, any available Overdraft Protection and/or the amount of the ODP limit, may be used to authorize and pay a transaction.
  • IBMSECU 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, an ODP Fee may be assessed.
  • Except as described in this letter, IBMSECU will not pay items if your account does not contain available funds, including the ODP limit, to cover the item(s) and the amount of any fee(s).
  • We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any ODP limit.
  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that IBMSECU can revoke at any time without prior notice.
  • Overdraft Privilege may be discontinued 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 32 days for a minimum of one business day.
  • Each Member and Joint Owner will continue to be liable, jointly and severally, for all ODP and fee amounts, as described in the Membership Disclosure. The total negative balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 800.873.5100, email us at serviceplus@ibmsecu.org or visit a branch near you.

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