Types of Overdraft Protection

Overdraft protection acts as a “safety net” that covers your transactions and keeps you from incurring certain merchant fees should you exceed your available checking account balance. We provide three types of overdraft protection: from a personal Overdraft Protection Line-of-Credit, from your Regular Savings account and from our discretionary Courtesy Pay Service.

1. Overdraft Protection Line-of-Credit
This type of overdraft protection is a personal protection loan. When necessary, funds are automatically transferred from the line-of-credit to cover any overdrafts. There's no fee for the service, but as with any loan, an interest rate applies. You must apply and be approved for the Overdraft Protection Line-of-Credit for it to become effective.

2. Savings Overdraft
If you don't have an Overdraft Protection Line-of-Credit, or you've exhausted your line-of-credit, you automatically receive overdraft protection from your Regular Savings. Vantage Credit Union will transfer the necessary funds (the full overdraft amount, including any applicable fees) from your Regular Savings account to cover any overdrafts. Due to Federal Regulation D, the total number of pre-authorized transfers and/or withdrawals and overdraft transfers that can be completed from your Regular Savings account is limited to six each month.

3. Courtesy Pay
Courtesy Pay is a discretionary courtesy we extend to eligible members to pay their overdrafts. (See Overdraft Protection FAQs for Regulation E details.) In the event of an accidental overdraft when all other overdraft options have been exhausted, Courtesy Pay saves you fees normally charged by merchants for each returned item.

Please review the following important information:

  • Our standard NSF Fee of $30 will be charged for each overdraft item that is paid by Courtesy Pay. This includes overdrafts caused by checks, in-person withdrawals, automated payments (ACH), or by other electronic means. This is the same fee that we charge for items drawn against insufficient funds and returned to the payee.
  • If multiple items are presented against your account on the same day, each item will be assessed an appropriate NSF Fee of $30.
  • Vantage has the discretion, but is not agreeing and does not have an obligation, to pay your overdrafts, and we may remove this courtesy at any time. An overdrawn balance must be repaid within 35 days or your Courtesy Pay limit may be removed.
  • Vantage ordinarily will not pay an item above the Courtesy Pay limit and may return items if you do not maintain your account in good standing by bringing it to a positive balance within every 35-day period for a minimum of one business day; if you default on any loan or other obligation to Vantage; or if your account is subject to any legal or administrative order or levy.
  • Fees charged for covering overdrafts, as well as the amount of the overdrafts item, will be subtracted from this Courtesy Pay amount as items are paid. It may be possible that your account will become overdrawn in excess of the Courtesy Pay amount as a result of the assessment of a fee. Balances at an ATM or other point of inquiry will not include the Courtesy Pay limit; however, items may be paid in excess of the balance provided.
  • Transactions may not be processed in the order in which they occurred, and the order in which transactions are received and processed may impact the total amount of fees assessed.