Overdraft Protection

When life happens, our Overdraft Coverage options will keep you covered.

Overdraft Coverage Options

Overdraft Protection and Overdraft Privilege

Life happens! The Southern Credit Union understands that unexpected overdrafts occur from time to time - Overdraft Coverage can help. The choice is yours. Consider these ways to cover overdrafts:

ServiceCost

Overdraft Protection (Link to Another Deposit Account you have at The Southern Credit Union)1

$5 per transfer

Overdraft Protection Line of Credit 1,2

Subject to fees + interest

Overdraft Privilege (OSP) Standard or Extended Coverage

$35 Overdraft Fee per item presented*

1 Call us at 770.719.1111 or 800.338.5882, email us at tscu@southernonline.org, or come by a branch to sign up or apply for these services.
2 Subject to credit approval.
* Per item presented means each time an item is presented, including re-presentment.

Overdraft Protection

Applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at The Southern for a fee or finance charge. Please note that 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 the “What Else You Should Know” section at the bottom of this page for other important information.

Transactions Covered with Overdraft PrivilegeStandard Coverage
(No action required)
Extended Coverage (Your consent required on consumer accounts)*

Checks

Yes

Yes

ACH - Automatic Debits

Yes

Yes

Recurring Debit Card Payments

Yes

Yes

Online Bill Pay Items

Yes

Yes

Internet Banking Transfers

Yes

Yes

Telephone Banking Transfers

Yes

Yes

Teller Window Transactions

No

Yes

ATM Transactions

No

Yes*

Everyday Debit Card Transactions

No

Yes*

If you would like to select Extended Coverage for future transactions, call us at 770.719.1111 or 800.338.5882, visit any branch, complete a consent form by clicking the link below and mail it to us at PO Box 1509, Fayetteville, GA 30214-6509, or email us at tscu@southernonline.org

Extended Coverage Consent Form

*If you choose Extended Coverage on your consumer account, ATM withdrawals 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 770.719.1111 or 800.338.5882 or sending us an email to tscu@southernonline.org.

What Else You Should Know

  • A link to another account or line of credit may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile, internet, and telephone banking services to track your balance. For financial education resources, please visit www.mymoney.gov.
  • The $35 Overdraft Fee that is charged if you overdraw your account is the same fee 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 Overdraft Fee or a Return Item Fee of $35. 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 Overdraft Fee from funds that you deposit or that are deposited into your account may call us at (770) 719-1111 to discontinue Overdraft Privilege.
  • If your account balance is overdrawn for fifteen (15) calendar days, we will charge your account a Negative Balance Fee of $15.00.
  • If your account balance is overdrawn for thirty (30) calendar days, we will charge your account a Collection Fee of $15.00.
  • If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, The Southern Credit Union (“We”) will charge a Return Item Fee each time it returns the item because it exceeds the Available Balance in your account. Because we may charge a Return Item Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge a Return Item Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an Overdraft Fee.
  • For consumer accounts, there is a limit of eight (8) Overdraft Fees ($280) per day. This does not apply to business accounts.
  • This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post credits before debits. Paper checks are posted in order of check number, lowest to highest ATM, ACH and debit card transactions are posted in the order in which the items are received. However, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Item Fees assessed.
  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • 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.
  • We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we 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 consumer account (Extended Coverage) may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
  • The Southern Credit Union may suspend your debit card if you: incur overdrafts in excess of the available balance in your account, including any OSP limit (as described herein). If your account is overdrawn more than thirty (30) consecutive calendar days. If we are unable to contact you due to an incorrect mailing address or phone number(s) Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Overdraft Security Privilege (OSP) limit, is positive.
  • If your debit card is suspended, you will be unable to use your debit card for purchases or to access your account at the ATM, and 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).

    Understanding your Available Balance:
    Your account has two kinds of balances: the Ledger Balance and the Available Balance.
  • We authorize and pay transactions using the Available Balance.
  • Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
  • Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
  • The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Protection.
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Privilege limit.
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Privilege limit.
  • Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we 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.
  • Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through online banking, mobile banking or The Southern Credit Union’s ATMs.
  • We 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 Overdraft Fee may be assessed.
  • Except as described herein, we 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).

    Understanding Overdraft Privilege Limits
  • An Overdraft Privilege limit of $200 will be granted to eligible Southern Way and Kia Way checking accounts opened at least 60 days in good standing.
  • An Overdraft Privilege limit of $500 will be granted to eligible Basic, Heritage, Checking Plus, Kia Premier and Business checking accounts opened at least 60 days in good standing.
  • Overdraft Privilege may be discontinued 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 30 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have Overdraft Privilege limit reinstated.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 770.719.1111 or 800.338.5882 or visit one of our branches.                                                                                                            
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