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Courtesy Pay for Point of Sale (POS) and
One-Time Check/Debit Card Transactions
Northeast Credit Union (NECU) would like to make all members aware that new federal regulations regarding overdraft protection went into effect on August 15, 2010. These new regulations require that financial institutions who offer courtesy pay give members an opportunity to opt in to such programs. For more information regarding these regulations click here to view a short video.
Courtesy Pay is a service that allows us to pay an item presented against your share draft (checking) account even if it causes the account to become overdrawn. Courtesy Pay may provide certain accountholders in “good standing” with the ability to overdraw their share draft (checking) account.
Members who joined after June 30, 2010, will not be eligible for courtesy pay until they meet the guidelines of NECU's courtesy pay policies.
What does that mean for members?
Even if you currently have Courtesy Pay, you will need to contact NECU and officially “opt in” in order to keep your Courtesy Pay privileges. The new regulations took effect on August 15, 2010, so if you have not contacted NECU stating your desire to retain Courtesy Pay you have been opted out. By being opted out, everyday debit card transactions will be declined if you do not have the funds in our account.
These regulatory changes will only affect Point-of-Sales (POS) transactions that you use your check/debit card to pay for everyday purchases such as groceries, gas or dinner at a restaurant.
If you choose to not opt in to Courtesy Pay and you don’t have sufficient funds in your account, your check/debit card will be denied under these circumstances (including your ATM withdrawals).
These changes do not apply to ACH transactions (automatic payment by direct debit from your NECU account, for example) or to checks--those will still be covered by other overdraft protection services you may already be using.
How do I opt in?
Members will be given several opportunities to opt in. You may express an interest in opting in now by completing an online form or by notifying a staff member at your NECU branch--but please remember that you must be eligible for Courtesy Pay. We will email or mail a confirmation letter to you confirming your decision. If you haven't opted in, your account will be opted out of Courtesy Pay and will be declined for point of sale transactions and one-time check/debit card transactions.
Please be careful. Identity thieves are already taking advantage of these regulation changes and running scams to elicit personal information from the public. Do not supply your member number to anyone unless you’re absolutely certain they are an authorized NECU staff member.
For Frequently Asked Questions (FAQ's) regarding this new government regulation and how it effects your accounts with NECU, click here.
You can read more about the federal government’s changes to these programs at the website of the Federal Reserve.
To learn more about Courtesy Pay and to notify NECU of your decision you can do so in the following ways:
Online: Complete the online form
Online Banking: Through your CyberTel account click here
Phone: 1.888.436.1847
Branch: Click here to find your local branch
Mail: Print out this form and mail it to:
Northeast Credit Union, PO Box 1240, Portsmouth, NH 03802 Attn: Contact Center
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