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Does Vantage West offer Overdraft Protection options?

Yes. You can set up automatic transfers from another account or your Credit Union credit card or line or credit if you do not have sufficient funds in your account to cover a transaction. An overdraft transfer fee will apply to each transfer. If your transfer account or credit card does not have sufficient funds, the transaction may be covered by the Overdraft Privilege program.

Learn about Overdraft Protection.

What is Overdraft Privilege?

Overdraft Privilege is not a line of credit.  However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft, subject to the limit of your Overdraft Privilege, after first subtracting the amount of the overdraft fee(s).

What is an overdraft?

An overdraft occurs, and an overdraft fee is charged to you, when the available balance in your account is insufficient to cover transactions you have made, but we pay the transaction(s) on your behalf. Transactions could include ATM withdrawals, debit card purchases, in person withdrawals, checks, automated payments or other electronic transactions.

Why does Vantage West provide Overdraft Privilege?

We encourage responsible financial management, but we recognize there are times when you need some extra convenience and flexibility. Our Overdraft Privilege is designed to provide that convenience and flexibility in an affordable and responsible manner.

What is the difference between my “available” balance and my “actual balance”?

Your available balance is the amount of money in your account that is available to you to use without incurring an overdraft fee The available balance takes into account things like holds placed on deposits and pending transactions (such as pending debit card purchases) that the Credit Union has authorized but that have not yet posted to your account.

Your actual balance is the amount of money that is actually in your account at any given time. It reflects transactions that have “posted” to your account, but it does not include transactions that have been authorized and are pending. While it may seem that the actual balance is the most up-to-date display of the funds that you can spend from your account, this is not always the case. Your account may have purchases, holds, fees, other charges, or deposits made on your account that have not yet posted and, therefore, will not appear in your actual balance.

It is important to understand that you may still overdraw your account even though the available balance appears to show there are sufficient funds to cover a transaction that you want to make. This is because your available balance may not reflect all your outstanding checks and automatic bill payments that you have authorized (or other outstanding transactions) that have not yet posted to your account.

 

How are transactions posted?

Transactions will be processed against the available balance in the account at the time of processing and the available balance is used to determine when you are overdrawn.

There are two main types of transactions in your account: credits or deposits of money into your account, and debits or payments out of your account. It is important to understand how each transaction is handled so that you know how much money you have available for use in your checking account.

Credits.  Most deposits are added to your account when we receive them. For some checks you deposit, only $200 will be made available at the time of deposit and the remainder will be available two (2) business days later. Additionally, there may be extended holds on checks over $5,000. Thus, your available balance may not reflect the most recent deposits to your account. For additional information on when your deposited funds will be available for withdrawal, see the section of your Member Agreement entitled “Funds Availability Policy.”

Debits.  You can make several types of debit transactions from your account. Each type of debit transaction is described generally below. Keep in mind that there are many ways transactions are presented for payment by merchants and other financial institutions and we are not necessarily in control of when transactions are received and posted to your account.

Checks. When you write a check, it is processed through the Federal Reserve System. We receive data files of cashed checks from the Federal Reserve each day. The checks drawn on your account are compiled from these data files and paid each day.

ACH Payments. We receive data files every day from the Federal Reserve with Automated Clearing House or ACH transactions. These transactions include, for example, automatic bill payments that you have authorized. Each day, ACH transactions for your account are grouped together and paid in low to high dollar value.

Point of Sale (POS) Debit Card Transactions. A POS transaction is when you use your debit card and you enter your PIN number at the time of the transaction. A POS transaction is similar to ATM withdrawals because money is usually deducted from your account immediately at the time of the transaction. However, depending on the merchant, some POS transactions are not presented for payment immediately.

Signature Debit Card Transactions. A Signature transaction is where you make a purchase with your debit card and you do not enter your PIN but you are instead asked to sign for the purchase. Signature transactions also include online transactions and transactions where you select “Credit” rather than “Debit” when using your debit card. For Signature transactions, the merchant may seek prior authorization for the transaction. When this occurs, we generally place a temporary hold against the available funds in your account. We refer to this temporary hold as an “authorization hold,” and the amount of the authorization hold is subtracted from your available balance. Authorizations are deducted from your available balance but not your actual balance as they are received by us throughout each day. At some point after you sign for the transaction, it is processed by the merchant and submitted to us for payment. This can happen hours or sometimes days after you signed for it, depending on the merchant and its processing company. These payment requests are received in real time throughout the day and are posted to your account as they are received.

Authorized Amount versus Final Amount. The amount of an authorization hold may differ from the actual payment because the final transaction amount may not yet be known to the merchant when the authorization request is submitted. For example, if you use your card at a restaurant, a hold will be placed in the amount of the bill presented to you. But, when the transaction is processed and posted to your account it will include any tip that you may have added to the bill. This may also be the case where you swipe your debit card at gas stations, hotels, rental car agencies and other retail establishments. We cannot control how much a merchant asks us to authorize, or when a merchant submits a transaction for payment.

How do I opt in to Overdraft Privilege?

If you want Vantage West to authorize and pay overdrafts on Checks, ACH, ATM, and everyday debit card transactions, submit the Overdraft Privilege Opt-In Form or contact us at 520-298-7882 or 800.888.7882 (outside of Tucson).

How do I opt out of Overdraft Privilege?

If at any time you NO LONGER want Vantage West to pay overdrafts on checks, ACH, ATM, and everyday debit card transactions, submit the Overdraft Privilege Opt Out Form or contact us at 520-298-7882 or 800-888-7882 (outside of Tucson).

Can Vantage West revoke the Overdraft Privilege from my account?

Yes, you must bring your account balance to a positive balance within 30 days of the first overdraft resulting in the negative balance. If the account is not brought current in the allotted time frame, Vantage West may, in its sole discretion, revoke the Overdraft Privilege from the account.

Also, it is important to note that Vantage West reserves the right to revoke Overdraft Privilege at any time without prior notification and to deny the payment of any transaction. Overdraft Privilege is a discretionary courtesy and not a right of the member or an obligation of Vantage West.

If I opt In to Overdraft Privilege, will Vantage West guarantee payment of my overdrafts?

No, Vantage West has the discretion to pay overdrafts within the Overdraft Privilege limits, but payment by Vantage West is a discretionary courtesy and not a right of the member or an obligation of Vantage West.

Vantage West is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment by Vantage West of an overdraft item does not obligate Vantage West to pay any other overdraft item or to provide prior notice of its decision to refuse to pay such item.

What are the fees if I use my Overdraft Privilege?

Each item that overdraws your checking account will be charged an Overdraft Privilege Fee of $15.00 per item if the resulting negative account balance is $10.00 or less or your account will be charged $32.00 per item if the resulting negative account balance is more than $10.00. There is no limit to the total fees that we may charge you for overdrawing your account.

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 incurred.

How will I know if I am overdrawn?

We will mail you a letter to notify you each time there is an overdraft item processed on your account. If you have eStatements, you will receive an email notification.

How long do I have to pay back the Overdraft Privilege?

You must bring your account to a positive balance within 30 days of the first overdraft resulting in the negative balance. If the account is not brought current in the allotted time frame, Vantage West may, in its sole discretion, revoke the Overdraft Privilege from the account. Failure to pay can also result in checking account closure.

Your next deposit will be used to repay the amount of the overdraft and the overdraft fee(s).

If I have only a savings account, can I opt in to have Vantage West Credit Union pay ATM overdrafts from my savings account?

Members may opt in for checking accounts, but not savings accounts.

Savings account transactions will be declined if funds are not available.

What other options do I have to cover overdrafts?

Overdraft Protection is available through automatic overdraft transfers from accounts you designate, such as savings, Visa or a line of credit if you do not have sufficient available funds to cover a transaction. To help avoid overdrafts, use Online Banking to keep tabs on your account.

We are happy to help you set up Overdraft Protection from an existing share account or assist you with applying for a Visa credit card or line of credit if you do not already have one.  Contact us to learn more.

Can I have Overdraft Protection and Overdraft Privilege?

Yes, they are different services. Overdraft Protection transfers will occur first if funds are available. Overdraft Privilege will be used only if you do not have sufficient funds after the Overdraft Protection transfers.

What are my options if I need financial assistance?

We offer assistance so that together we can discuss ways to help you manage your finances. Visit one of our branches or call our Loss Mitigation Department at 520-751-7003 to see how we can help.

Updated: August 31, 2015