Frequently Asked Questions

• What is the Overdraft Protection?

  Overdraft Protection uses funds linked from a designated account you have chosen to cover a transaction if there are not enough funds in your Checking Account. When your checking account is linked to a designated share account or personal line of credit, HFS FCU will automatically transfer the amount needed to cover your transaction which is called an overdraft transfer.

• How do I sign up for Overdraft Protection?

  To sign up for this service to link your shares or personal line of credit as a designated account, you may call the Credit Union or visit any of our six locations. If you do not have a personal line of credit and would like to apply for one, you may submit an application online.

  *A Personal Line of Credit is a loan and you will pay interest on the number of days you use the loan. Making monthly or lump sum payments will free up your available credit for when you need it next.

• What is Courtesy Pay?

  Courtesy Pay allows HFS FCU to offer a discretionary service to qualified members so various transactions such as checks, debit card transactions, and electronic payments are paid if there are not enough funds in your account. With this service, you’ll pay an Overdraft Fee to HFS FCU for each item that overdraws your account but, you will avoid the merchant’s Returned Check or Non-Sufficient Funds fee and stay in good standing with the people you do business with.

  Member’s must opt-in for everyday debit card transactions to be covered under Courtesy Pay.

• Why opt in to Courtesy Pay for every day transactions?

  Courtesy Pay for everyday debit card transactions is an added level of protection that many members have for their Checking Accounts. This “just in case” service is often preferred by members over being declined a transaction at the cash register. Members should speak to a Member Service Representative to opt in.

  If you do not opt in, Courtesy Pay will not apply to your everyday debit card transactions. These transactions typically will be declined when you don’t have enough money in your account, and you will not be charged a fee.

• How much does Courtesy Pay cost?

  HFS FCU currently charges a $25 flat fee that may be charged each time an item is presented for payment and there are not enough funds in your Checking Account to cover the transaction. There are dollar limits to the total amount your account may be overdrawn at any one time. In addition, HFS FCU does not guarantee that your transactions will be paid.

• What do I need to know about Courtesy Pay?
  • Avoid using these services as a short-term loan – they are costly forms of credit. This is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • If you overdraw your account, you should deposit money back into your account as soon as possible. Remember that you need to put enough money back in your account to cover both the amount of your overdraft and any fees.
  • Even if you have one of these services, there is no guarantee that the Credit Union will cover your checks, debit card transactions, ATM withdrawals and other electronic payments that overdraw your account.
  • Good account management is the most cost-effective way to protect your hard-earned money. If you feel that these services would be beneficial, feel free to ask an HFS FCU representative which service would be the right choice for you.
• What types of transactions does Courtesy Pay Cover?

  At HFS FCU, Courtesy Pay is divided into two types:

  1. Protection for checks, recurring debit card transactions and automatic bill payments
  2. Protection for everyday debit card transactions (transactions used in store or online for a one-time purchase)

  HFS FCU always attempts to pay for checks and automatic bill payments. However, to have added protection for everyday debit card transactions, you must opt in (agree) to the additional coverage.

  	Standard Coverage (No opt-in required)	Opt-In Coverage (Your consent required)
  Share Drafts/Checks	X
  ACH Transactions	X
  Automatic bill payments	X
  Recurring debit card transactions	X
  Everyday debit card transactions		X

  Example: Suppose you had $20 in your checking account. You wrote a check for $30 and spent $50 at the store. These two transactions have overdrawn your account by $60 [$80 (transactions) – $20 (amount currently in your account) = $60].

  With Courtesy Pay, HFS FCU may cover both transactions however, the Overdraft Fee will be charged for each item presented for payment that has overdrawn your account. With the $25 fees being charged for both the check and debit card transactions, you will now owe HFS $110 [$60 (overdrawn amount in your account) + $50 (2x$25) = $110].

  Without Courtesy Pay or Overdraft Protection in place, in this example, the Credit Union would return your $30 check as non-sufficient funds and reject your $50 debit transaction. The $30 check that is returned will cause a $25.00 NFS Fee to be charged to your account. You may also be charged by the payee/merchant a fee based on their return check policy. Also, an NSF fee will be charged each time the unpaid item is presented for payment and there are not enough funds in your checking account to cover the transaction.

• How do overdrafts and bounced checks happen?

  When you write a check, use your debit card to make a purchase, make an automatic bill payment or withdraw more money from your account than is available, you overdraw your account.

  For Courtesy Pay which is a discretionary service, HFS FCU has the choice to either pay the amount or not. If we pay the amount even though you don’t have the money in your account, you may be charged an Overdraft Fee. If HFS FCU returns your check without paying it, you may be charged a Bounced Check or Nonsufficient Funds fee. The person or company that you wrote the check to may also charge a Returned Check Fee, in addition to the fee HFS FCU charges you.

• How can I avoid Overdraft and Bounced Check Fees?

  The best way to avoid Overdraft and Bounced Check Fees is to manage your account so that you don’t overdraw it.

  • Keep track of how much money you have in your Checking Account by keeping your check register up to date. Record all checks and other transactions when you make them. Don’t forget to subtract any fees.
  • Pay special attention to your electronic transactions. Record your ATM withdrawals and fees, debit card purchases and online payments.
  • Don’t forget about automatic bill payments you may have set up for utility, insurance or loan payments.
  • Keep an eye on your account balance, and review your statements each month. Remember that some checks and automatic payments may not have cleared yet. Between statements, you can find out which payments have cleared. You can also check your balance by calling HFS FCU, by logging onto your online banking account, or by checking your balances at an ATM. Be sure to find out the available balance amount in your account, which is your current account balance not including any pending transactions that have not cleared.
• If I don’t want Courtesy Pay, can I discontinue it?

  Yes, you can discontinue it at any time by calling HFS FCU at (808) 930-1400 or toll free at (800) 216-2666 or by visiting any of our branch offices.

• What should I do if I have a problem or complaint about Courtesy Pay?

  First, try to resolve the problem directly with HFS FCU. If you are unable to resolve the problem, you may want to file a complaint with the NCUA, a federal agency responsible for enforcing banking laws. You may submit your complaint online or send a letter to:

  National Credit Union Administration
  Consumer Assistance Center
  1775 Duke St., Alexandria, VA 22314
  Fax: (703) 518-6682
  Phone: 800-755-1030
  Website: mycreditunion.gov

• What else do I need to know?
  • • HFS FCU authorizes and pays transactions based on the available balance in your checking account. Your checking account has two kinds of balances: the “current balance” and the “available balance.”
    • Your current balance reflects the full amount of all settled deposits to your account as well as settled payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
    • The available balance is the amount of money in your account that is available for you to use. The available balance does not include holds placed on deposits, holds on debit card or other transactions that have been authorized but are not yet posted, and any other holds related to pledges of account funds and minimum balance requirements to comply with court orders.
    • Examples illustrating the difference between current balance and available balance:
      • Example 1: Debit Card Transaction

    If you have a $100 current balance but use your debit card to buy dinner for $40, then there is a pre-authorization hold on your account (at the request of the restaurant), and your available balance (the money you have left to use) is $60. In other words, the $40, which you just spent, is no longer available for use. Your current balance is still $100.00 until the restaurant charge is submitted and posted to your account.

    • Example 2: Check Deposit Transaction

    On the deposit side, if the Credit Union chooses to put a hold on a check, for example, an out-of-state check in the amount of $5,000, the hold will be placed on the entire amount of the check. In this example, your available balance is $0 and your current balance is $5,000.

    • Example 3: Debit Card and Check Clearing Transactions

    Assume your current and available balances are both $40, and you use your debit card at a restaurant to pay your bill totaling $30. If the restaurant requests authorization in the amount of $30, an authorization hold is placed on $30 in your account. Your available balance is only $10, but the current balance remains $40. Before the restaurant charge is sent to us for payment, a check that you wrote for $40 is presented for payment. Because your available balance is only $10 due to the $30 authorization hold, your account will be overdrawn by $30 when the check transaction is posted to your account even though your current balance is $40. In this example, if we pay the $40 check in accordance with our standard overdraft services, we will charge you a fee for overdrawing your account as disclosed in the Credit Union’s Schedule of Fees and Charges. The fee will also be deducted from your account, further increasing the overdrawn amount. In addition, when the restaurant charge is finally submitted to us for payment, we will release the authorization hold and pay the transaction amount to the restaurant. The transaction amount may be $30 or a different amount (for example, if you added a tip). Because the amount of the restaurant charge exceeds your available balance at the time the charge is settled (i.e., at the time the merchant or its financial institution requests payment or the transaction posts to your account), we will charge you another fee for overdrawing your account, even though you had a sufficient available balance in your account at the time the restaurant charge was authorized and approved.

    • Checks, transactions, and any other items may not be processed in the order that you make them or in the order that we receive them. HFS FCU may, at our discretion, pay a check, draft, or item, and execute any other transactions on your account in any order. The order in which we process these transactions may affect the total amount of overdraft fees that may be charged to your account. Please contact us if you have questions about how we pay checks or drafts and process transfers and withdrawals.
    • An overdraft fee will be charged for each transaction that overdraws your account. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts which will incur a fee for each transaction.
    • HFS FCU will place a hold on your account for any authorized debit card transaction until the transaction settles as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction (i.e., gas station transactions). When the hold ends, the funds will be added to your available balance in your account.
    • Refer to our Membership and Account Agreement for more information.

    Courtesy Pay 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.