A Small Price for Peace of Mind
Anyone can make a mistake. If a check, debit card purchase, automatic payment, ATM withdrawal or some other transaction brings your checking account to a negative balance, the result is an overdraft. The good news is Ripco Credit Union offers overdraft protection services to ensure the money goes where it is supposed to go.
Overdraft Protection Services:
Standard Overdraft (Courtesy Pay)
When you initiate a transaction, such as writing a check or making an electronic payment, and your account balance is insufficient to cover it, a standard overdraft service provided by the credit union allows the transaction to be completed on your behalf. A fee is applied for this service. It acts as a safety net for your account, ensuring that crucial payments are honored even if you lack sufficient funds at that moment.
Debit Card Overdraft
With debit card overdraft, upon your authorization, the credit union permits you to make purchases using your debit card even if your account balance is insufficient. This means you can proceed with transactions even when your balance is low. However, a fee is charged for each transaction that results in an overdraft of your account.
Savings Account Transfer
In cases where your checking account lacks sufficient funds for a transaction, we will automatically check your linked savings account for available funds. If funds are available, we will transfer the required amount to cover the transaction, with a minimal transfer fee applied for this convenience.
Kwik Cash Line of Credit
For a more comprehensive safety net, our Kwik Cash Line of Credit provides a seamless solution. This line of credit is directly linked to your checking account, automatically covering overdrafts by transferring funds per your executed agreement. Application and credit approval are required to access this feature. A transfer fee is incurred for each use, and interest accrues on the borrowed amount until it is repaid in full.
Key Differences:
- Transaction Types: Standard overdraft covers various transaction types, including checks and electronic payments, while debit card overdraft specifically applies to one-time debit card and ATM transactions.
- Fees: All services entail fees, but the fee structure may vary. Please consult our Schedule of Fees and Service Charges for details.
- Opt-In Requirement: Debit card overdraft is an opt-in service, requiring your explicit agreement, whereas standard overdraft protection may be automatically provided by the credit union.
In summary, while all our overdraft protection programs provide a safety net when your account lacks sufficient funds, they differ in the types of transactions covered, fee structures, and the requirement for opting in. Understanding the terms and fees associated with each option is crucial for making informed decisions about effectively managing your finances.