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How does Privilege Pay work?
If you are covered by Privilege Pay and overdraw your account, we may elect to cover your overdraft up to your disclosed Privilege Pay limit. You will need to stay in good standing and bring your account to a positive balance within 30 calendar days from the initial Privilege Pay use. You need to maintain that positive balance for a minimum of twenty four hours to continue to receive Privilege Pay.
What's so great about Privilege Pay?
If you make a mistake in your checkbook or have an unforeseen expense, Privilege Pay will save you the embarrassment, expense, and inconvenience of having a check returned to the merchant It helps protect your credit rating and reputation.
How can Privilege Pay protect my credit rating?
Nearly every institution reports repeat overdraft conduct. That can make it difficult to get credit or checking account privileges in the future. The merchant or payee may also report NSF activity to consumer reporting agencies. By covering the overdraft, Privilege Pay prevents the return of the check and reporting of it as an NSF item.
Will I be charged a fee for Privilege Pay?
Yes. Members will be charged the normal $30.00 fee for each paid item presented. Whether the item is paid or returned, the member will be assessed the same overdraft fee.
Quick Tip: One fee is better than two! If we did not cover your overdraft, you would pay twice - one fee from the credit union and one from the merchant. Merchants and retailers set their own fees for returned items, typically between $25 and $75 per item.
What is the difference between Privilege Pay and an overdraft loan?
An overdraft loan is a contractual agreement that pulls funds from another source to pay an item. Privilege Pay is not a contractual agreement. It does not pull funds from another source to pay an item but instead allows the member to take their account into the negative. We will continue to offer overdraft loans to those members who want them and qualify under current lending criteria.
Why are you adding Privilege Pay to my account? Aren't you encouraging me to incur overdraft charges?
No. We are trying to save you the embarrassment of having a check returned and help you avoid the additional fees that merchants may charge them for returned checks. You only incur charges when they use Privilege Pay.
How can Privilege Pay be accessed?
By writing a check, having a payment electronically deducted from your account or making a withdrawal at the teller window. Privilege Pay is also available through the ATM and for everyday debit withdrawals ONLY IF you complete the Opt-In form found here.
If I have reached my Privilege Pay limit, will additional checks be returned?
Yes. If the member is at or over their limit then Privilege Pay will not cover and all additional NSF items are returned with the NSF fee.
I have money in my savings, why was Privilege Pay used?
Federal regulations limit the number of transfers that can be made from a savings account each month. If there have already been 6 transfers from your savings for the month, we cannot transfer the money into your checking account.
Can my Privilege Pay limit be raised?
No.
How do I opt out Privilege Pay?
Please phone the CVFCU Call Center or speak with any Member Service Representative to opt out of Privilege Pay.
Privilege Pay is a great service if used correctly - as a "safety net" for unexpected expenses or simple mistakes. It should never be considered a substitute for balancing your checkbook, monitoring your account balances and spending within your means. If you aren't keeping good records of how much money you have available in your checking account, the next time you swipe your debit card for a $2 hamburger, it could cost you $32!
Fortunately, using Privilege Pay appropriately is as simple as paying attention to your checking account balance. Avoid fees by managing your account:
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Balance your checkbook
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Record all checks when you write them
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Record other transactions (using your debit card, online bill pay) when you make them
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Subtract any fees charged to your account
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Review your account statements frequently. Find out which items have cleared and check your balance
using CU-Online, Centraline or visiting an ATM.
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Know the available amount in your account your account balance not including any funds that have not yet been released
If you need help managing your checking account, please call 434/528-9016.
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