What you need to know about Overdrafts and Overdraft Fees

An overdraft occurs when your transaction amount exceeds the "Available Balance" in your account. [NOTE: There are many circumstances that will affect your access to the funds in your account(s). Many of these transactions are beyond the Credit Union's control as they are requirements of the payment networks that your transactions are processed through via the merchants with whom you choose to do business. Therefore, your account records may show an "Actual Balance" and an "Available Balance." The Actual Balance is the total amount of funds in your account(s). The Available Balance is the amount of the Actual Balance that is available for transactions (withdrawals, write checks, debit transactions, online banking or other authorized transactions.) You should take care to only make transactions against the Available Balance, as these are the only funds you may access for transactions. If you exceed the Available Balance (even though the Actual Balance may be greater) you may overdraw your account as new or additional transactions cannot be processed until funds are available for transactions.]   This service saves you the embarrassment and inconvenience of a returned item, a returned item fee, as well as a fee that merchants may charge you for items returned to them.

Our standard overdraft practices are outlined below. We also offer overdraft protection plans, such as a link to a savings account, and overdraft lines of credit, which may be less expensive than our standard overdraft practices. To learn more about these plans, please contact the credit union. 

Under our standard overdraft practices:

1) We automatically authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

2) After August 15, 2010, we will not authorize and pay overdrafts for the following types of transactions unless you authorize us to:

  • ATM transactions
  • Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. 

3) Below are the overdraft fees when the credit union pays for your overdraft:

  • We will charge you a fee of up to $29 each time we pay an overdraft.
  • A negative balance fee of $1.00 per day each open business day that the account remains negative will be assessed (for up to 45 open business days).
  • There is no limit on the total fees we can charge you for overdrawing your account. 

If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, you may complete the form here, mail it to Penobscot County FCU, 205 Main Street Old Town ME 04468, or present it at any Penobscot County FCU branch.