Overdraft Protection & Courtesy Pay

Unexpected overdrafts occur from time to time. Union Square Credit Union understands. Overdraft Protection can help. Choose the option that works best for you.


Overdraft Coverage Options

Service Fee
Overdraft Protection—Linked Union Square Credit Union Deposit Account $2 fee per transfer
Union Square FlexLine—Overdraft Protection Line of Credit* Subject to interest
Courtesy Pay $30 per item

*Subject to credit approval

Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds from a USCU linked account or line of credit to a member’s checking account for a fee or finance charge.

Courtesy Pay allows members to overdraw an account up to a disclosed limit for a fee for each transaction. Courtesy Pay is available as secondary coverage to members who choose Overdraft Protection but have exhausted that source of protection. Please review “Courtesy Pay—Additional Information” (see below) for more information regarding Courtesy Pay.

Transactions Covered with Courtesy Pay Standard Coverage
(No action required)
Extended Coverage
(Your consent required)*
Checks Yes Yes
ACH - Automatic Debits Yes Yes
Recurring Debit Card Transactions Yes Yes
Online Bill Pay Items Yes Yes
Internet Banking Transfers Yes Yes
Telephone Banking Yes Yes
Teller Window Transactions Yes Yes
ATM Transactions Yes*
Everyday Debit Card Transactions Yes*

*ATM and Everyday Debit Card Transactions are covered by Courtesy Pay when a member elects “Extended Coverage.” Business accounts automatically have “Extended Coverage."

To sign-up for Overdraft Protection, apply for a Union Square FlexLine of Credit, or request to discontinue Courtesy Pay, call (940) 720-8000, email info@unionsquare.org, or stop by any branch location. 

To elect Extended Coverage, call (940) 720-8000, email info@unionsquare.org, stop by any branch location, or download the consent form and mail it to: Union Square Credit Union, 1401 Holliday Street, Wichita Falls, TX 76301.

Courtesy Pay—Additional Information

  • 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 while several, smaller overdrafts will result in an overdraft fee for each transaction. Good account management is the best way to avoid overdrafts. Use Union Square’s mobile banking, internet banking, and telephone banking services to manage an account’s balance. For additional resources, please visit www.mymoney.gov.
  • The $30 Courtesy Pay fee charged for an overdraft is the same fee amount charged if an item is returned as unpaid. If multiple items overdraw an account on the same day, each item will be assessed a Courtesy Pay fee or an Insufficient Funds charge of $30. All fees and charges are included as part of a member’s Courtesy Pay limit amount. An account may become overdrawn more than the Courtesy Pay limit due to fees.
  • If an item is returned because a member’s available account balance is not sufficient to cover the item and then the item is presented for payment again, Union Square will charge an Insufficient Funds charge each time the item is presented and exceeds a member’s available account balance. If, upon representing the item, the available account balance is sufficient to cover the item, Union Square Credit Union may pay the item and, if payment causes an overdraft, charge a Courtesy Pay fee. 
  • There is a limit of 5 Courtesy Pay fees ($150) per day for all consumer accounts. There is no limit for business accounts.
  • Union Square Credit Union’s general policy is to post items throughout the day and to post ACH credits before debits. ATM and debit card transactions are posted in the order in which they are received. ACH items are presented throughout the day and post in the order in which they are received. Paper checks are posted in check number order. However, because of the many ways in which a member may access his/her 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 Courtesy Pay fees or Insufficient Funds charges assessed.
  • Although under payment system rules Union Square Credit Union may be obligated to pay some unauthorized debit card transactions, Union Square Credit Union will not authorize debit card or ATM transactions unless an account’s available balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
  • Authorizing consent to pay everyday debit card and ATM overdrafts on a consumer account (Extended Coverage) may result in a member incurring Courtesy Pay fees for transactions that Union Square would otherwise be required to pay without assessing a Courtesy Pay fee. However, this consent allows Union Square Credit Union to authorize transactions up to the amount of a member’s Courtesy Pay limit and may help members avoid overdrafts in excess of an available balance. Consent to Extended Coverage on a consumer account remains in place until it is otherwise withdrawn.
  • Union Square Credit Union authorizes and pays transactions using the available balance in a member’s account. USCU may place a hold on deposited funds in accordance with the Terms and Conditions provided with the Union Square Member Account Agreement, which will reduce the amount of an 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 Courtesy Pay limit and any available Overdraft Protection. The available balance for authorizing 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 Courtesy Pay limit. For accounts with Extended Coverage, the Courtesy Pay limit is included in the available balance for authorizing ATM and everyday debit card transactions.
  • Please be aware that the Courtesy Pay amount is not included in a member’s available balance provided through online banking, mobile banking, or Union Square Credit Union’s ATMs.
  • Union Square Credit Union will place a hold on an 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 a member’s account. If an account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, a Courtesy Pay fee may be assessed.
  • Except as described herein, Union Square Credit Union will not pay items if the available balance in an account (including the Courtesy Pay limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
  • New consumer and business checking accounts will receive a $100 introductory Courtesy Pay limit at account opening that will be increased to $500 after 30 days in good standing for consumer accounts or $750 after 60 days in good standing for business accounts.
  • Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Courtesy Pay may be suspended if a member defaults on any loan or other obligation to Union Square Credit Union, if an account becomes subject to any legal or administrative order or levy, or if a member fails to maintain an account in good standing by not bringing an account to a positive balance within 32 days for a minimum of one business day. Members must bring an account balance positive for at least one business day to have the full Courtesy Pay 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 Terms and Conditions provided with our Union Square Member Account Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.

For questions about Overdraft Protection or Courtesy Pay, please call Union Square Credit Union at 940-720-8080 or visit any branch.