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 does Overdraft Protection work?

  When you link your checking account to another designated share account or personal line of credit, we will automatically transfer the amount needed from your designated account to cover the transaction, up to your available balance.

• 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.

• Are there any fees for using Overdraft Protection?

  There are no overdraft fees charged when using this service.

• 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.

• How does Courtesy Pay work?

  If a member’s account is in good standing, HFS Federal Credit Union may pay the transaction if there are not enough funds in the checking account which will overdraw the account.

• Is this a guaranteed service that will always be used if there are not enough funds in my checking account?

  No.  The Credit Union at its discretion will determine payment of an overdraft based on several factors such as your account status and balances in your account.

• Are there any fees charged to me if Courtesy Pay is used?

  There is a $25.00 overdraft fee 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.

• How do I sign up for Courtesy Pay?

  To sign up for this service, you may call the Credit Union or visit any of our six locations.

• 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.

• 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. The available balance is the amount of money in your account that is available for you to use. The available balance does not include debit card holds or deposited funds on hold in your account. Refer to our Membership and Account Agreement for more information.
  • 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.
  • 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.