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What Else You Should Know

Overdraft Protection and Overdraft Privilege

Life happens! Hershey Federal 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 Hershey FCU1

$0 Transfer Fee

Overdraft Protection Link to a Cash Advance on your Hershey FCU credit card1, 2

$0 Transfer Fee; Subject to interest; Subject to credit approval

Overdraft Protection Line of Credit1, 2

$0 Transfer Fee; Subject to interest; Subject to credit approval

Overdraft Privilege

$33.00 ODP Fee per item.

1Call us at (717) 533-9174, email us at [email protected], or come by a branch to sign up or apply for these services; 

2Subject to credit approval.

Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account, cash advance, or line of credit you may have at Hershey FCU for a fee or finance charge. Please note that cash advances and overdraft lines of credit are subject to credit approval.

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please review "What Else You Should Know" section for other important information.

Transactions Covered with Overdraft Privilege

Standard Coverage (No action required)

Extended Coverage (Your consent required)*

Checks

X

X

ACH - Automatic Debits

X

X

Recurring Debit Card Transactions

X

X

Online Bill Pay Items

X

X

Internet Banking Transfers

X

X

Telephone Banking

X

X

Teller Window Transactions

X

X

ATM Transactions

 

X*

Everyday Debit Card Transactions

 

X*

*If you choose Extended Coverage on your account, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Privilege Extended Coverage, it is not necessary to request it again.

You can discontinue Overdraft Privilege in its entirety by contacting us at (717) 533-9174 or sending us an e-mail at [email protected]

What Else You Should Know

  • A link to another account or a line of credit may be a 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 of your balance. For additional financial education resources, please visit www.mymoney.gov.
  • The $33 ODP Fee is the same fee amount 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 ODP Fee of $33. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
  • Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the ODP Fee from funds that you deposit or that are deposited into your account may call us at 717-533-9174.
  • If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, Hershey FCU will charge an NSF Fee each time it returns the item because it exceeds the available balance in your account. If, on representment of the item, the available balance in your account is sufficient to cover the item Hershey FCU may pay the item, and, if payment causes an overdraft, charge an ODP Fee.
  • There is no limit on the total ODP Fees per day we will charge.
  • We generally post items in the following order: 1) credits, 2) ATM and debit card transactions (in the order received), 3) ACH debits (in order received, credits first), 4) checks (low to high dollar amount); however, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of ODP Fees or NSF Fees assessed.
  • Although under payment system rules, Hershey FCU may be obligated to pay some unauthorized debit card transactions, Hershey FCU 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 account (Extended Coverage) may result in you incurring ODP Fees for transactions that we would otherwise be required to pay without assessing an ODP Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available balance that could result in suspension of your debit card. If you consent to Extended Coverage on your account, it will remain on your account until it is otherwise withdrawn.
  • Hershey FCU authorizes and pays transactions using the available balance in your account. Hershey FCU may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your available balance. The balance for authorizing checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Overdraft Privilege limit and any available Overdraft Protection. The balance for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Protection, but does NOT include the Overdraft Privilege Limit. For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the balance for authorizing ATM and everyday debit card transactions.
  • Please be aware that the Overdraft Privilege amount is not included in your available balance provided through mobile banking or Hershey FCU’s ATMs.
  • Hershey FCU 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, an ODP Fee may be assessed.
  • Except as described herein, Hershey FCU will not pay items if the available balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
  • Hershey FCU may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Overdraft Privilege limit (as described herein). Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Overdraft Privilege limit, is positive and then you contact us.
  • Hershey FCU 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.
  • Hershey FCU may also suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated.
  • 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).
  • An Overdraft Privilege limit of $500 will be granted to eligible consumer checking accounts opened at least 35 days in good standing.
  • An Overdraft Privilege limit of $500 will be granted to eligible business checking accounts opened at least 35 days in good standing.
  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Overdraft Privilege 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 Overdraft Privilege limit reinstated.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (717) 533-9174 or visit a branch.