What You Need to Know about Overdrafts and Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. ALEC can cover your overdrafts in three different ways:
- Overdraft Protection: This free service will automatically transfer funds from your linked savings account (s) to cover overdrafts for the following transactions: Paper Checks, Automatic Withdrawals (ACH and Bill Pay), Recurring Debit Transactions, Everyday Debit Transactions, ATM Transactions. This service will occur before Courtesy Pay if sufficient funds are available in your savings account to cover the overdraft.
- Courtesy Pay: This service will cover your transaction but will overdraw your checking account, take your balance into the negative and charge a fee. Courtesy Pay may cover overdrafts for the following transactions: Paper Checks, Automatic Withdrawals (ACH and Bill Pay), Recurring Debit Transactions. ALEC offers Basic Courtesy Pay and Rewards Checking Enhanced Courtesy Pay.
- ATM and Everyday Debit Card Transactions Overdraft Services: This optional service will cover your transaction but will overdraw your checking account, take your balance into the negative and charge a fee. This optional service includes the following transactions: Everyday Debit Transactions, ATM Transactions. To use this service you must give us your consent.
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.
How do I enroll my Debit Card for Courtesy Pay to cover my ATM and Everyday Debit Card Transactions?
If you want to use ATM/Debit card overdraft services, we need to receive your consent. Even in an emergency your transactions will be declined – unless you give us permission to pay everyday debit and ATM withdrawals using our Courtesy Pay Overdraft Services.
Click here to give us your consent.
Questions?
If you have questions, please visit our Help Center, or contact us for assistance.