Overdraft Coverage

WHAT ARE MY OVERDRAFT COVERAGE OPTIONS?

Consider these ways to cover overdrafts:

¹Contact us at (800) 678-8765, emailus@chartway.com, or come by a branch to sign up for these services. ²Subject to interest. Subject to credit approval.

WHAT IS OVERDRAFT PROTECTION?

Overdraft Protection services apply to all types of transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from another account or line-of-credit you may have at Chartway, for a fee and/or finance charge. Please note that overdraft lines-of-credit are subject to credit approval. We also have mobile, online, and telephone banking services to help you keep track of your balance.

WHAT IS OVERDRAFT PRIVILEGE?

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a $30 fee per item in order to pay a transaction.

Chartway may provide you a specific Overdraft Privilege limit depending on whether you have direct deposit. You will receive a letter approximately sixty (60) days after account opening for consumer accounts, informing you that Overdraft Privilege has been activated on your account. You do not have Overdraft Privilege until you receive this notification.

Even if you have Overdraft Protection, such as a transfer from another account, Overdraft Privilege is still available as secondary coverage if the other protection sources are exhausted.

Please be aware that the Overdraft Privilege amount is not included in your available balance displayed through online banking, mobile banking, telephone banking or Chartway ATMs.

HOW MUCH DOES OVERDRAFT PRIVILEGE COST?

When Overdraft Privilege is used, the Overdraft Privilege Fee of $30 will be imposed for overdrafts created by checks, ACH, point-of-sale, in-person withdrawals, or by other electronic means. If multiple items overdraw your account on the same day, each item will be assessed the $30 fee. This is the same fee that Chartway charges for items returned to the payee due to insufficient funds.

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, Chartway will charge a Non-sufficient Funds 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 Chartway may pay the item, and, if payment causes an overdraft, charge an overdraft fee.

There is no limit to the number of Overdraft Privilege Fees that we will charge your consumer account per day. We will not charge an Overdraft Privilege Fee if your consumer account is overdrawn by $10 or less.

All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of the assessment of a fee. The total negative balance, including all fees and charges, is due and payable upon demand. Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Deposit Account and Disclosure Agreement.

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 $30 Non-Sufficient Funds Fee that is charged if you overdraw your account more than $10 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 Non-Sufficient Funds Fee or a Return Item Fee of $30. 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 as a result of a fee.
• 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, Chartway Federal Credit Union will charge a Return Item 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 Chartway Federal Credit Union may pay the item, and, if payment causes an overdraft, charge an Non-Sufficient Funds Fee.
• For LifePlus checking, CashBack checking and business accounts, there is no limit on the total Non-Sufficient Funds Fees per day we will charge. We will not charge an Non-Sufficient Funds Fee if a consumer account is overdrawn by $10 or less. This exception does not apply to business accounts. Livenow checking accounts are not subject to overdraft fees.
• 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. Credits post first, then force-paid items from prior day processing (as arrived), wire transfers, teller cash withdrawals, over the counter items (in serial number order), ATM, POS/debit card transactions (as arrived), ACH (as arrived), checks (in serial number order), automatic debit transactions and fees; 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 Non-Sufficient Funds Fees or Return Item Fees assessed.
• Although, under payment system rules, Chartway Federal Credit Union may be obligated to pay some unauthorized debit card transactions, Chartway Federal Credit Union 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 Non-Sufficient Funds Fees for transactions that we would otherwise be required to pay without assessing an Non-Sufficient Funds 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. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
• Chartway Federal Credit Union authorizes and pays transactions using the available balance in your account. Chartway Federal Credit Union may place a hold on deposited funds in accordance with the Membership and Account Agreement, which will reduce the amount in your available balance. The available balance for 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 available balance for 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 available 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 online banking, mobile banking or Chartway Federal Credit Union’s ATMs.
• Chartway Federal Credit Union 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 Non-Sufficient Funds Fee may be assessed.
• Except as described herein, Chartway Federal Credit Union 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).
• Overdraft Limits of up to $500, or $750 on accounts with active direct deposits, are available for eligible Personal Checking accounts opened at least 60 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. Overdraft Privilege may be reduced if you have a loan with us that is past due more than 30 days 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 Membership and Account Agreement. 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 (800)-678-8765 or visit a branch.

WHAT IF I WANT CHARTWAY TO PAY EVERYDAY DEBIT CARD OVERDRAFTS (EXTENDED COVERAGE)?

If you want us to authorize and pay overdrafts caused by everyday debit card transactions (Extended Coverage), tell us by using one of the methods below:

• Complete the online consent form at odp.chartway.com
• Log in to Online Banking
• Call us at (800) 678-8765
• Visit one of our convenient branch locations
• Complete the paper consent form and mail it to us at 5700 Cleveland St., Virginia Beach, VA 23462

WHAT IF I DON’T WANT OVERDRAFT PRIVILEGE?

You can request to discontinue the Overdraft Privilege service in its entirety at any time — call (800) 678-8765 or visit one of our convenient branch locations. Without Overdraft Privilege, your insufficient funds items will be returned to the payee and/or declined at the point of purchase, unless you have Overdraft Protection available to cover the item(s). You will be charged the standard Non-Sufficient Funds Fee of $30 for all returned items.

WE BELIEVE THAT GOOD ACCOUNT MANAGEMENT IS THE BEST WAY TO AVOID OVERDRAFTS.

Use our mobile, online, and telephone banking services, along with low balance alerts, to help you keep track of your balance. Call us at (800) 678-8765 to learn more.

WHAT TYPES OF TRANSACTIONS DOES OVERDRAFT PRIVILEGE COVER?

The types of transactions covered by Overdraft Privilege depend on the coverage selected. See the chart below for more information.

If you choose Extended Coverage, all the transaction types listed in Standard Coverage are included, along with ATM and everyday debit card transactions. Chartway will not authorize overdrafts for ATM and everyday debit card transactions on consumer accounts unless you give us your consent to pay these overdrafts by electing Extended Coverage.

OVERDRAFT PROTECTION AND OVERDRAFT PRIVILEGE SUMMARY

• Overdraft Protection services allow you to link other accounts or lines-of-credit you have with Chartway to your checking account in order to prevent overdrafts and may be less expensive than an overdraft.
• Overdraft Privilege limits of up to $500 or $750 with Direct Deposit are available for eligible Consumer Checking accounts opened at least sixty (60) days in good standing.
• Standard Overdraft Privilege covers checks, online bill payments, ACH transactions, Internet banking transactions, telephone banking transactions, teller window transactions, and recurring debit card transactions (automatic/pre-authorized debits that you establish i.e. insurance premiums, utility bills, etc.).
• Extended Overdraft Privilege covers ATM and everyday debit card transactions on your personal accounts with your prior consent, in addition to those transactions covered by Standard Overdraft Privilege.
• Both Overdraft Protection and Overdraft Privilege may enable you to avoid expensive merchant returned-check charges.
• Both Overdraft Protection and Overdraft Privilege may enable you to avoid having your debit card transactions declined due to insufficient funds.
• You must deposit the full amount of the overdraft within thirty-two (32) consecutive calendar days, including any fees assessed, and maintain a positive balance for at least one business day to continue to receive Overdraft Privilege.
• If your account remains overdrawn for thirty-two (32) consecutive days, the Overdraft Privilege will be removed and your debit card(s) will be suspended.

For additional financial education resources, visit mymoney.gov or our website at chartway.com.

If you have questions about Overdraft Protection or Overdraft Privilege, please call us at (800) 678-8765.