OVERDRAFT COVERAGE OPTIONS:

Convenience Pay AND OVERDRAFT PROTECTION

Life happens! Alabama ONE Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

OVERDRAFT COVERAGE OPTIONS

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

Service	Cost
Overdraft Protection Link to Another Deposit Account you have at Alabama ONE Credit Union1	$5 fee per transfer
Line of Credit – Overdraft Protection1, 2	Subject to fees + interest
Convenience Pay	$35 Convenience Pay Fee per item.

 

Call us at (205) 759 – 1595, email us at ODP@alabamaone.org, or come by a branch to sign up or apply for these services; ²Subject to credit approval.

Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Alabama ONE Credit Union for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.

Convenience Pay allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction. Even if you have overdraft protection, Convenience Pay is still available as secondary coverage if the other protection source is exhausted.

Transactions Covered with Convenience Pay	Standard Coverage (No action required)	Extended Coverage (Your consent required on consumer accounts) *
Checks	X	X
ACH – Automatic Debits	X	X
Recurring Debit Card Payments	X	X
Online Bill Pay Items	X	X
Internet Banking Transfers	X	X
Telephone Banking	X	X
Teller Window Transactions	X	X
ATM Withdrawals		X*
Everyday Debit Card Transactions		X*

 

*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Convenience Pay coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

You can discontinue the Convenience Pay in its entirety by contacting us at (205) 759 – 1595 or sending us an e-mail at ODP@alabamaone.org.

WHAT ELSE YOU SHOULD KNOW

• A link to another account or line of credit may be less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, internet banking, and telephone banking services to keep track your balance. For additional financial education resources, please visit the Financial Wellness Resource and Tools link on our website at www.alabamaone.org, or you can view other resources at  www.alabamaone.org/financialwellness or call 844-588-0945.
• The $35.00 Convenience Pay Fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Convenience Pay Fee or a Return Item Fee of $35.00. All fees and charges will be included as part of the Convenience Pay limit amount. Your account may become overdrawn more than the Convenience Pay limit amount because of a fee.
• For consumer accounts, there is no limit on the total Convenience Pay Fee per day we will charge.
• Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Convenience Pay Fee from funds that you deposit or that are deposited into your account may call us at 205-759-1595 to discontinue Convenience Pay.
• If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Alabama One ("We") will charge a Return Item Fee each time we return the item because it exceeds the Available Balance in your account. Because we may charge a Return Item Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge a Return Item Fee , the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge a Convenience Pay Fee. We may use the terms "item" and "transaction" interchangeably.
• This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post ACH credits before debits. Paper checks, ATM, ACH and debit card transactions are posted in the order in which the items are received. however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Convenience Pay Fees or Return Item Fees assessed.
• Convenience Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Master Account Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.
• We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account's Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
• Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Convenience Pay Fees for transactions that we would otherwise be required to pay without assessing a Convenience Pay Fee. However, this would allow us to authorize transactions up to the amount of your Convenience Pay limit and may also help you avoid overdrafts in excess of your Available Balance. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.
• We authorize and pay transactions using the Available Balance.
• Your Ledger Balance reflects the full amount of all deposits to your account as well as 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.
• Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
• The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Convenience Pay limit and any available Overdraft Protection.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Convenience Pay limit.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Convenience Pay limit.
• Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Master Account Agreement, which will reduce the amount in your Available Balance.
• Please be aware that the Convenience Pay amount is not included in your Available Balance provided through online banking, mobile banking or Alabama One's ATMs.
 
• We 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, a Convenience Pay Fee may be assessed.
• Except as described herein, we will not pay items if the Available Balance in your account (including the Convenience Pay limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
• We may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Convenience Pay limit (as described in this letter). Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Convenience Pay limit, is positive and then you contact us.
• We may also suspend your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
• If your debit card is suspended, you will be unable to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s) at the ATM while your debit card is suspended. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).

Understanding Convenience Pay Limits
• A Convenience Pay limit of $500.00 will be granted to eligible consumer checking accounts opened at least 90 days in good standing.
• A Convenience Pay limit of $700.00 will be granted to eligible Business Checking accounts opened at least 90 days in good standing.
• Convenience Pay may be suspended 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. You must bring your account balance positive for at least one business day to have the full Convenience Pay limit reinstated.

If you have any questions about Overdraft Protection or Convenience Pay, please call us at 205-759-1595 or visit a branch.

 

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What You Need To Know about Overdrafts and Convenience Pay Fees

 An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

1. We have standard overdraft practices that come with your account.

2. We also offer overdraft protection plans, such as a link to another account or a line of credit, which may be less costly than our standard overdraft practices. To learn more, ask us about these plans.

This notice explains our standard overdraft practices.

 

What are the standard overdraft practices that come with my account?

We do authorize and pay overdrafts for the following types of transactions:

• Checks and other transactions made using your checking account number
• Automatic bill payments

We will not authorize and pay overdrafts for the following types of transactions without your consent.

• ATM transactions
• Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

 

What fees will I be charged if Alabama ONE Credit Union pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $35 each time we pay an overdraft

There is no limit per day on the total fees we can charge you for overdrawing your account

 

What if I want Alabama ONE Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call (205)759‐ 1595, visit our website at www.alabamaone.org/convenience-pay/, email us at odp@alabamaone.org, complete the form below and present it at a branch or mail it to: 1215 Veterans Memorial Pkwy Tuscaloosa, AL 35404. You can revoke your authorization for Alabama ONE Credit Union to pay these overdrafts at any time by any of the above methods. Your revocation must include both your name and your account number so that we can properly identify your account.