What Is a Courtesy Pay Fee?
In the world of credit unions, courtesy pay fees are the equivalent of overdraft fees — when you attempt to make a purchase but don’t have enough money in your account to complete the transaction, the credit union will spot the transaction for you and issue you a fee for allowing your account balance to fall into the negative. Delta Community Credit Union accounts come with an automatic courtesy pay service that enables the financial institution to cover certain types of transactions, including:
- Checks or other transactions made using your checking account number
- ACH transactions
- Online or automatic bill payments (e.g. auto-pay utility bills, credit card payments)
- Recurring debit card transactions (e.g. gym memberships, streaming service subscriptions)
Delta Community can cover other types of overdraft transactions, such as one-time debit purchases and ATM transactions, but you first have to opt into Courtesy Pay Plus.
Financial institutions are not obligated to cover any transactions that overdraw your account, regardless of transaction type or overdraft protection status. The decision is ultimately at the credit union’s discretion.
How Much Does a Courtesy Pay Fee Cost at Delta Community Credit Union?
Delta Community Credit Union charges $35 per item that overdraws your account.
Related Fees
If you overdraw your account at Delta Community Credit Union, a number of scenarios could occur.
- Courtesy pay fee
- NSF fee
- Overdraft protection transfer fee
Courtesy pay fee
Courtesy pay fees most often occur when you are not opted into overdraft protection and the credit union allows you to overdraw your account on checks, ACH transactions, automatic bill payments, recurring debit transactions, and any other transaction made using your checking account number. You can also incur a courtesy pay fee on ATM transactions and one-time debit purchases if you’ve opted in.
NSF fee
A non-sufficient funds (NSF) fee — also called an insufficient funds fee or returned item fee — occurs when you make a purchase but there are not enough funds in your account to cover the transaction. Instead of covering for you, the bank will decline the transaction, or return the item unpaid. Delta Community charges $35 for each transaction that it returns unpaid. The bank will not charge you an NSF fee for ATM or debit card transactions unless you’ve opted in, but can charge you a fee for:
- Checks or other transactions made using your checking account number
- ACH transactions
- Online or automatic bill payments
- Recurring debit card transactions
Overdraft protection transfer fee
Overdraft protection transfer fees most often occur when you are opted into overdraft protection and the bank allows you to overdraw your account by transferring funds from a qualifying linked account. Rather than a $35 overdraft fee, Delta Community will charge a $3–$5 overdraft protection transfer fee if you are opted into the program.
To enable overdraft protection, you must link a qualified account so that the bank can transfer funds from one account to another in the event of an overdraft. Qualified accounts include:
- Savings or money market account
- Line of credit
- Credit card
Special Considerations
Delta Community Credit Union does not have a limit on the number of courtesy pay fees and NSF fees that you may be charged on a single day.
You will be automatically enrolled in Delta Community Courtesy Pay if:
- You have an active checking account open for more than 60 days with a positive balance
- Your accounts have not been restricted
- The primary account owner is 18 or over
By opting into overdraft protection, you’ll have peace of mind knowing that your transactions can be covered even if you don’t have sufficient funds in your account; however, you should consider a few things before opting in.
Overdraft protection is optional. In fact, your bank is legally required to ask whether or not you want to opt in. The service can unfortunately do more harm than good if you do not budget or use overdraft protection effectively. It could dig you into a deeper hole than had you allowed some applicable transactions to be declined.
According to a study by the Consumer Financial Protection Bureau, opted-in accounts typically pay more on bank fees than accounts that aren’t opted in, which is why you should consider your lifestyle, spending habits, and financial goals before opting into overdraft protection. When in doubt, know that you can opt into or out of overdraft protection at any time.
Learn more about what you should know before opting into overdraft protection.
How to Avoid a Courtesy Pay Fee
Overdraft fees are one of the most common charges detected on Cushion customers’ accounts, but there are small actions that you can take to avoid them:
- Keep an eye on your account balance and charges.
- Sign up for low-balance notifications.
- Carefully consider whether you should opt into overdraft protection.
Learn more about how to avoid an overdraft fee.
How to Get a Courtesy Pay Fee Refund
Courtesy pay fees can be a real pain in your side, but if you take a shot at negotiating them with your bank, you may be surprised at just how much money you can put back in your pocket.
Here’s how to prepare for your bank fee negotiation.
Prepare your information
Name, address, bank account number, the fees that you’d like to negotiate — have them ready for the customer service agent.
Introduce yourself
“Hello. My name is , and I recently received a courtesy pay fee. I’m contacting you to see if you would be willing to refund this fee.”
Have your points of leverage ready
Have you been financially affected by COVID-19? Is this overdraft a rare occurrence? Are you a loyal customer who has banked with Delta Community Credit Union for an extended period of time? Do you have multiple accounts with the bank? Do you make regular deposits?
Be patient, persistent, and prepared not to get a refund every time
A little kindness goes a long way. Remember: The representative that you’re speaking with on the phone likely didn’t write the rules on refunds. But also, don’t hesitate to press the issue if you initially hear “no” — that’s what your points of leverage are for. Sometimes, whether or not you’re successful depends on the agent that you speak with, so try calling back a few days later to speak with someone new.
Finally, you have to be willing to lose some negotiations. Try not to get discouraged, but do try to take the necessary steps to avoid a courtesy pay fee in the future.
Learn more about how to get a courtesy pay fee refund.
Find Delta Community Credit Union’s courtesy pay breakdown here.
