Courtesy Pay is a service that allows us to pay an item presented against your checking account even if it causes the account to become overdrawn.
Courtesy Pay may provide certain account holders in "good standing" with the ability to overdraw their checking account up to $1,000. The Courtesy Pay limit includes any overdraft fees assessed.
If the account has been open and maintained in good standing, defined as A) Making regular deposits sufficient to cover transactions; B) Bringing the account to a positive balance at least once every thirty days or less, and; C) There are no legal orders outstanding on your account, we may, at our sole discretion, pay overdrafts up to the limits mentioned above, including our normal Non-Sufficient Funds or Courtesy Pay charge(s). Whether we pay or return an item, your account will be assessed a fee, either as a Courtesy Pay charge or a Non-Sufficient Funds charge but you will not be charged both fees. Our current charge per item is $30 which may be changed with prior notice to you.
Courtesy Pay offers additional flexibility and convenience in managing account holder funds, and provides peace of mind knowing that items may be paid up to the authorized overdraft limit. Using Courtesy Pay may be more costly than other overdraft payment options we may offer. Speak to a representative to see if you qualify.
This non-contractual courtesy of paying overdrafts requires no account holder action. No additional agreements need to be signed, and it costs nothing unless the privilege is used - by initiating checks, electronic funds transfers, or other payment or withdrawal requests for more than is on deposit in the account. If you maintain the account in good standing and have need for this "courtesy," we may, at our sole discretion, pay the item(s) up to the authorized limit, and we will charge the account our normal Non Sufficient Funds or Courtesy Pay charge for each item that overdraws the account. You then have up to 30 days to bring the account current. We will send you a notice each time an overdraft occurs.
Although you are not charged for using Courtesy Pay unless you have an overdraft, you may opt-out of Courtesy Pay at any time. If you do not want us to pay your overdrafts, you must tell us ("opt-out"). If you receive a direct deposit social security or other federal benefit check, you must opt-out if you do not want us to apply those funds to repay an overdraft.
Courtesy Pay allows Merck Sharp & Dohme Federal Credit Union to provide a higher level of service to our account holders by helping to protect your account and reputation when an inadvertent overdraft occurs.
Additional information is found in your account agreement. If you have questions, do not hesitate to call Member Services at (215) 996-3700.