To opt-in or opt-out of debit card coverage, visit a Member Center or call our Member Help Center at (800) 762-0047, or read below to learn more.
Federal Regulation Changes to Your Debit Card
A new federal regulation went into effect on August 15, 2010 affecting members when they use their debit card and find out they don’t have enough money in their checking account to cover a purchase. The regulation changes how financial institutions are allowed to respond to everyday debit card transactions that cause a checking account balance to go negative.
You Have A Choice!
The new regulation gives you a choice on how you would like us to handle your debit card transactions that trigger non-sufficient funds (NSF) and cause your checking account balance to go negative. We agree you should have the choice to have your debit transaction either approved through our Debit Card Overdraft Coverage (even if it means drawing your account negative and resulting in a fee) or have it denied due to NSF to keep your account from becoming overdrawn.
Due to this change, Wright-Patt members has two new practices as of August 15th:
- We need your permission to cover any debit card transactions triggering your checking account to become negative and overdrawn due to NSF unless you have sufficient funds through Overdraft Protection and/or additional coverage through Overdraft Coverage.
- To help avoid accidental overdrafts, WPCU has also begun placing debit card transactions in a “pending” status. This is an instant hold on money used for a purchase.
We’ve provided the following information to help you better understand your debit card overdraft solutions and to learn how these changes may affect you.
Debit Card Pending Transactions/Holds - Effective August 15th!
The new regulation means WPCU can no longer allow even accidental overdrafts unless you give us your permission to do so. As a result, a new “Pending” transaction practice has begun as of August 15th. This is an instant hold on money in your account after it has been used to make a purchase.
As of August 15, when you use your debit card to make a purchase the funds will be immediately flagged as pending and considered spent and unavailable for future debit card swipes. This new practice is probably the biggest change members will notice. A benefit of this change is you'll be able to see pending debit transactions using WPCU’s Home Banking.
What's Different? show
In the past, members may have experienced a delay between their debit transaction and when the funds actually cleared their account. Because funds were still considered available during this processing delay, additional debit card purchases could be made and there was a possibility for accidental overdrafts. As a result, we would, at our discretion, process the overdrafts with associated NSF fees to your account.
Moving forward, when members do not have enough money in their account to cover a purchase made using a debit card, the purchase will be declined.
How Will It Work? show
When you use your debit card, the business will swipe your card and the computers will automatically begin checking to see if there is enough available money in your account to cover your purchase. The funds will be immediately flagged and considered spent and unavailable for future debit card swipes.
For example, if you have a current checking balance of $50 and spend $30 at the grocery store, WPCU will immediately consider the $30 as "pending." You would have $20 available to spend immediately after the grocery transaction.
When Could This Affect Me? show
In most cases this will not affect you unless you’re paying for a service already delivered, such as a restaurant tab, and you don’t have enough money in your account or enough available funds through Overdraft Protection to cover the transaction. If this happens, and you have not opted in to Debit Card Overdraft Coverage, then you’ll be required to provide an alternative form of payment before leaving. We don’t want anyone doing dishes!
Debit Card Overdraft Solution(s)
We don’t believe you should spend money you don’t have. We also know mistakes happen and you may find yourself in a situation where you make a purchase using your WPCU debit card and you don’t have enough money in your account.
You know best how to handle your account(s) and it is an individual decision. Some members may not want additional overdraft coverage. While others may want a backup plan for when their account is running low and they are willing to accept a possible fee for the service. Either way, we will handle your account according to your wishes.
What Types of Overdraft Solutions are Available? show
Wright-Patt Credit Union offers two types of debit card overdraft solutions: Overdraft Protection and Overdraft Coverage. You can choose to have both overdraft solutions. The funds linked to your Overdraft Protection accounts will be used first to cover an NSF. If you choose to opt-in to Overdraft Coverage, this will provide you with additional coverage above and beyond Overdraft Protection.
Overdraft Protection - How YOU Can Protect Your Account show
Overdraft Protection comes standard with your checking account and is set-up to automatically move (or link) money from an established line-of-credit or savings account into your checking account to cover an overdraft. This means we will automatically cover debit card and ATM overdrafts when money is available in your TrueSaver savings account and/or Readyline line-of-credit, unless you have asked us not to. There is no fee for transfers from a line-of-credit; however, a small $5.00 fee applies for each transfer from a savings account.
If you would like to adjust your Overdraft Protection to include another account, such as your money market or credit card account, you can visit your Member Center or call us at (937) 912-7000 or toll-free at (800) 762-0047 to sign-up.
Overdraft Coverage - How WE Can Protect Your Account show
To receive Overdraft Coverage you must permit us to do so by opting-in up front. Overdraft Coverage allows WPCU to cover, at our discretion, your debit card purchase when no money is available in either your checking account or through Overdraft Protection. A set fee of $19.00 applies for each transaction WPCU covers. This will cause your checking account to go negative until you make your next deposit.
You can opt-in to Overdraft Coverage by visiting a Member Center, or by contacting us at (937) 912-7000 or toll-free at (800) 762-0047.
For more information about these debit card changes, you can also read two articles in our June MemberMatters Newsletter: Debit Card Changes Coming WPCU Lowers Debit/ATM Overdraft Fees and The Way Your Debit Card Works is Changing!
Other Ways to Manage Your Account(s)
In addition to keeping careful track of your checking account balance and setting up Overdraft Protection and Overdraft Coverage, we offer a number of services to help you better manage your finances. show
Direct Deposit
Why race against time by driving to your local Member Center to deposit your check? Have it deposited automatically to your account. Save time and get your money into your account quicker.
Home Banking
Easy access to your Wright-Patt accounts! You’ll never be left wondering what’s pending and how much is left in your account.
Bill Pay
Keep your bills flowing and simplify your life — no more checks, stamps or envelopes when paying bills!
Mobile Banking
When you need to look at your account balance on the road — anytime, anywhere!
eAlerts
Get text or email reminders about your account activity. Set a minimum account balance alerting you to low funds.
eNotices
Extending the convenience of eAlerts, eNotices automatically notify you through email any time something important happens with your account.
Call-24
Check your checking account balance or transfer funds by accessing your account anytime by phone by calling (937) 912-8000 or (800) 336-7277.
Debt In Focus
Get a better understanding of your financial situation, completely free and anonymous. Answer a few questions, and we’ll provide you a customized action plan that is easy to understand and implement.
Financial Worksheets
Easy steps for managing your budget, setting goals, understanding your financial picture, and more — your plan for a brighter future.
GreenPath Debt Solutions
Free budgeting, credit counseling, and debt advice — money management for a better life.
Frequently Asked Questions:
Learn more about Regulation Changes, Overdraft Coverage, Overdraft Protection and Pending Transactions. show
Q: What Are Overdrafts?
A: An overdraft occurs when you don’t have enough money in your checking account to cover a transaction causing your balance to become negative, or overdrawn, but we pay the transaction for you.
Q: Why Are Debit Overdrafts Changing?
A: Due to changes made to Federal Regulation E, financial instituions are prohibited from charging overdraft fees for ATM and everyday (one-time) debit card transactions that overdraw your account, unless you permit us to do so by opting into Overdraft Coverage.
Q: What Will Change On My Debit Card?
A: Due to the new Regulation on how financial institutions can handle debit card transactions, WPCU is changing how debit card transactions are authorized on your account. To help avoid accidental overdrafts, WPCU will begin placing debit card transactions in a “pending” status. This is an instant hold on money used for a purchase before the funds “officially” clear from your account. This means the funds will be deducted immediately from your available balance and considered spent and unavailable for future debit card swipes. We can not cover debit card purchases when you do not have sufficient finds in your account unless you choose to opt-in to Debit Card Overdraft Coverage. A benefit of this change is you'll be able to see your pending debit transactions using home banking.
Q: What Is Debit Card Overdraft Coverage?
A: Debit Card Overdraft Coverage can prevent your card from being declined during the time of purchase, even if you do not have the funds in your account to cover the purchase. This coverage is at our discretion and we do not guarantee that every transaction will be approved.
Q: What Is WPCU’s Debit/ATM Overdraft Coverage Fee?
A: If an ATM/ Debit Card purchase clears your account and your balance is brought negative there is a $19 NSF fee. To provide members with a benefit, WPCU decided to lower the fee charged for accidental Debit/ATM overdrafts from $25 to $19.
Q: Is the NSF Fee for Checks also Changing?
A: This new regulation applies only to debit card transactions. This doesn't change how we handle overdrafts on checks you've written, or electronic transfers using your account and routing number (ACH debits). Those are still handled the same way they always have been, including the $25 fee.
Q: How Do I Opt-in To Overdraft Coverage?
A: There are several ways you can opt-in. You can reply back to mail or email notices asking you to opt-in or opt-out of Debit Card Overdraft Coverage. You be able to reply via email, inside at a Member Center, or contact us at (937) 912-7000 or toll-free at (800) 762-0047 to sign up.
Q: I Want to Opt-out Of Overdraft Coverage. How Do I Do That?
A: Nothing, if we don’t hear from you by August 15, 2010, you will be automatically opted out of Debit Card Overdraft Coverage.
Q: What Happens If I Have Overdraft Protection?
A: You can still count on the same linked Overdraft Protection you have always had from your line-of-credit or savings transfer. Available funds in your Overdraft Protection accounts will be taken into consideration for authorization purposes. There is no fee for transfers from your line-of-credit; however, a small $5.00 fee applies for each transfer from a savings account.
Q: What About My Checking Overdraft Coverage (Courtesy Pay)?
A: If you have additional overdraft coverage (also called Courtesy Pay) on your checking account, it will remain in effect for payments made by check and ACH. The new regulations only apply to everyday, one-time debit card transactions.
Q: Are There Other Ways to Cover Overdrafts?
A: The best way to avoid overdrafts is to keep track of your account balance and outstanding transactions. However, WPCU understands mistakes happen. That’s why we offer credit- based products such as lines-of-credit and credit cards as well as additional levels of Overdraft Protection. If you would like to discuss all of these options further, feel free to stop in to a Member Center or contact us at (937) 912-7000 or toll-free at (800) 762-0047.
Q: Can I Opt-in For My Business Account?
A: No. These regulation changes only apply to personal accounts. However, the fee for debit card overdrafts will be reduced to $19 for all accounts, including business accounts.
To download a script of Mr. Fecher's video, click here.