Overdraft Protection Services

Overdraft Protection Services

We understand you’ve got a busy life. It’s hard to keep track of all your finances when things are hectic. So what happens if you:

    •    Run short on cash between paydays?
    •    Have unplanned expenses?
    •    Make an honest mistake in your checkbook?
At First Imperial CU we are here to help you manage your checking account by offering the following overdraft options:

Automatic Savings Transfer

When your checking account doesn’t have sufficient funds, an automatic transfer from your share savings (or any other selected savings account) will take place to cover any items clearing your account. You are limited to six transfers per month per savings accounts.

Overdraft Privilege

What is Overdraft Privilege?
Overdraft privilege is an overdraft service we offer to pay items presented against your checking account when your account balance is not sufficient to do so. Instead of returning the transaction to the merchant for non-sufficient funds (NSF), we pay it and overdraw your account.
Overdraft privilege covers life’s unexpected emergencies and saves you from merchant NSF fees, interruption of services and the embarrassment and inconvenience associated with returned or declined items.

What is the difference between Overdraft Protection Transfer and Overdraft Privilege?
Overdraft Protection Transfer and Overdraft Privilege are two completely separate overdraft services offered by First Imperial CU.

Overdraft Protection Transfer allows funds to be transferred from a previously linked First Imperial CU sub-account, such as savings, money market or a line-of-credit, to pay an item. Overdraft Protection Transfer will NOT allow the account to overdraw (go into a negative balance) to pay an item. Overdraft Protection Transfers are subject to Federal Regulation D, meaning you can only have 6 electronic transfers from a savings or money market account per month for protection. Notify us which account(s) you wish to designate for Overdraft Protection Transfer.

Overdraft Privilege is a service which pays items which would otherwise be returned as NSF if the funds are not available in your account or overdraft protection transfer can no longer protect you. If you have established an Overdraft Protection Transfer source, we will attempt to pay an overdraft using this method before paying your overdraft utilizing Overdraft Privilege.

What is my Overdraft Privilege limit?
After your account is open for 60 days, we will review your account to determine if you are eligible for Overdraft Privilege.  If you are, your limit may be $300 on Regular Checking accounts and $500 on Loyalty Checking accounts (with direct deposit). This limit may be adjusted depending credit review and/or account history with First Imperial CU.

Is there a fee for Overdraft Privilege?
There is no cost for Overdraft Privilege unless you use it. There is a per item fee each time an item is paid through Overdraft Privilege. See our fee schedule.

What types of transactions are covered by or qualify for Overdraft Privilege?
Overdraft Privilege is automatically activated  60 days after your checking account (Regular & Loyalty) is opened for the following types of transactions:
   •    Checks and other transactions made using your checking account number
   •    Automatic bill payments
We do not authorize and pay overdrafts utilizing Overdraft Privilege for the following types of transactions unless you opt-in for this service:
   •    ATM transactions
   •    Everyday debit card transactions

Why does First Imperial CU provide this service?
We understand you may need to make a transaction that exceeds your balance in your checking account due to unforeseen circumstances or an unexpected emergency. While some financial institutions have decided to not allow anyone to opt-in to Overdraft Privilege for ATM and everyday debit card transactions, First Imperial CU firmly believes in giving our members a choice.

Why am I being asked to opt-in to Overdraft Privilege for ATM and everyday debit card transactions?
Regulations require members to opt-in to receive Overdraft Privilege overdraft protection services on ATM and everyday debit card transactions. Overdraft Privilege for other transactions, including check, Bill Pay and other transactions made using your checking account number, will not be affected.

Why should I opt-in to Overdraft Privilege for ATM and everyday debit card transactions?
There are many reasons why you might want to opt-in to Overdraft Privilege for ATM and everyday debit card transactions, including:
   •    In difficult times, your transaction may be approved when you need money to pay for unexpected expenses.
   •    Your purchase is approved when you have insufficient funds in your checking account, rather than denied.
   •    Eliminates Embarrassment. Avoid the awkwardness of a merchant declining your transaction.
   •    Nothing to Lose. There is no fee to opt-in and no fee if you never use the service, however all the protection remains.

If I opt-in to Overdraft Privilege for ATM and everyday debit card transactions, will my items always be paid?
We pay overdrafts at our discretion. This means we do not guarantee we will always authorize and pay any type of transaction when there is not enough money available in your checking or designated overdraft protection accounts to cover the item.

What if I never plan to use Overdraft Privilege?
We recommend that you still opt-in to Overdraft Privilege for ATM and everyday debit card transactions because you never know when an emergency will occur. Overdraft Privilege acts as a last line of defense, only after overdraft protection transfer sources have been exhausted. Overdraft Privilege offers you peace of mind and it does not cost you anything unless you use it.

How do I opt-in to Overdraft Privilege for ATM and everyday debit card transactions?
Complete and submit the ATM and Debit Card Overdraft Privilege Opt-In Form found in the forms page. Email to memberservice@ficu.com or drop it off with one of our friendly representatives at our branches.