A small mistake shouldn't turn into a big deal.
A paycheck arrives late. A stack of bills come due. Or you get too busy to balance your checkbook. The bottom line? You spend more money than you actually have in your account. At Blackhawk Community Credit Union, we don't want anyone to be embarrassed by a small mistake. That's why we offer several ways to protect your account and provide you with peace of mind.
How Overdraft Protection Works
Let's use a real example. You have $50 in your checking account.
Without Overdraft Protection
- You use your debit card or write a check at a store for $55.
- Without overdraft protection, the check would be sent to the store as "insufficient funds."
- We would charge you a fee for processing the check and the merchant would charge you a fee for writing a bad check.
With Overdraft Protection
- We see if you have money in your savings first and transfer the funds for a $4 transfer fee.
- If not, we cover the $55 from your reserve Kwik Cash loan for a $4 transfer fee.
- If there is no loan set up, you pay a $30 overdraft fee.
- The merchant is paid without knowing the checking account did not have sufficient funds.
If you used your debit card to make the purchase, you wouldn't have a return check fee by the merchant because your card would tell the store clerk that it was declined. With overdraft protection, it would send an approval message without the merchant knowing the account was negative.
Choose Your Overdraft Protection
Transfer from Savings
If there is not enough money in your checking account to clear the checks you’ve written, we can look to your savings account.
- We’ll transfer the money from savings automatically
- A $4 fee may be charged each time a transfer is made
- This is a great option, but it requires you to keep extra money in your savings for emergencies
Overdraft Protection Line of Credit
An overdraft line of credit is a loan linked to your checking account. If you overspend your account:
- We’ll transfer the money from the line of credit automatically
- A $4 fee may be charged each time a transfer is made
- You pay interest on the loan until you repay it in full
- Members must complete a loan application and meet credit standards to qualify
Overdraft Privilege™
Overdraft Privilege™ permits you to withdraw more than the account balance for a short period (up to 30 days) to cover unexpected emergencies.
- We’ll automatically pay for the purchase or approve the withdrawal
- A $30 fee is charged each time you use it
- This program does have some coverage limits based upon the type of withdrawal you are making
Automatic Coverage
Not every transaction is covered by every overdraft protection program. The transactions that are automatically covered are:
- Checks you wrote
- Purchases made with your debit card that happen periodically, like online subscriptions
- Pre-authorized withdrawals where you gave your checking account information to set up, like the health club or utility payments
Complete Coverage with Overdraft Privilege™
Other transactions can be covered by signing an "opt-in" agreement. The agreement allows us to help you out in other situations, including:
- ATM transactions
- Debit card purchases at the merchant
- You can opt-in by calling us at 800.779.5555, visiting any branch, or completing our opt-in form
*Overdraft Privilege is available for eligible checking account holders. Overdraft Privilege will cover checks, drafts, electronic funds transfer, debit card transactions, ATM withdrawals, and other withdrawal requests for a fee of $30 each time you use it. The overdraft must be paid within 30 days and the checking account must have a positive balance for a minimum of 24 hours. We may refuse to pay an overdraft at any time, even though your account is in good standing and we may have paid overdrafts in the past. You will be notified of any returned items by mail.
