Business Overdraft Protection & Privilege Pay
Running a business can be hectic. It’s easy enough to make a mistake or miscalculation and before you realize it, you have insufficient funds in your account to cover your remaining transactions. That's why it’s important to arrange for overdraft protection for your checking account to keep items from being returned.
Business Overdraft Options
Overdraft Protection
Optional service to enroll a business savings account1, or Overdraft Line of Credit as backup to your business checking account.
What’s covered?
Checks, ACH debits, and debit card transactions.
Costs:
No transaction fee when made from a Business Line of Credit. $5.00 fee when made from a savings account.
Please note: an outstanding balance on a Business Line of Credit is subject to a finance charge.
Business Privilege Pay
Automatic discretionary overdraft service that covers your transactions in the event that your overdraft sources unintentionally have insufficient funds; up to $1,500.
What’s covered?
Checks, ACH debits, and debit card transactions.
Costs:
$40 per item.
How to Avoid Overdrafts
Even with overdraft options in place, overdraft fees may still occur. The best way to reduce or even eliminate overdraft fees altogether is to avoid overdrawing your checking account. Monitoring is the key to keeping your checking account balance in check and overdrafts non-existent.
Keep Track of Your Available Balance
Your available account balance is the amount you can use without incurring an overdraft (and possible fee). The balance shown may not always reflect what’s actually available for withdrawal. Pending transactions, e.g., deposits on hold, debit card purchases not yet posted to your account, and checks not yet cleared, all factor into your available balance. To determine how much is available; subtract all pending and outstanding items from the balance shown on your account. The remainder is what is available. View the Your Checking Account Balance section of our Overdraft Notice for further explanation.
Balance Your Account
A check register makes keeping track of ATM withdrawals, purchases, etc., easier. If you need help balancing your account, use our checkbook balancing tool.
Use Account Monitoring Services
Take advantage of HVCU’s many free account monitoring options to keep daily tabs on your account balance and activity, including Business Internet Banking, Business Mobile Banking and CUAlerts.
Additional Information About Overdraft Coverage
Please refer to our Overdraft Notice for additional information about the circumstances when we pay overdrafts from your checking account and charge you a fee.
If you do not have sufficient funds available in your business checking account to cover items, they may be paid pursuant to HVCU’s Business Privilege Pay or Overdraft Protection program.
Business Privilege Pay covers the overdrafts for eligible business accounts2 for up to one business checking account. It is a courtesy service covering expenses that can’t be paid when you unintentionally do not have enough funds in either your checking account or other overdraft protection sources.3
After 60 days of membership, you will be automatically enrolled into our Privilege Pay program for your primary business checking account. In the event that funds are exhausted from your checking and your assigned overdraft sources, Privilege Pay provides peace of mind by paying overdrafts for checks, Visa Debit Card transactions, automatic bill payments, and other transactions made using your checking account number up to a maximum coverage of up to $1,500 in total items, including any Business Privilege Pay item fees. Please note that debit cards for authorized users will also be opted in for this service. You have the option to opt-out of this service at any time by calling us at 845.463.3011, visiting any of our branches, emailing us on our secure email form, or mailing your request.
How to Avoid Fees
- Balance your accounts – Overdrafts often occur due to automatic withdrawals or debit card purchases that haven’t been immediately reconciled. Accounting software like Quicken or Quickbooks can help track withdrawals, providing ample time to adjust spending accordingly.
- Use account monitoring services – Take advantage of Business Internet Banking and/or our Business Mobile Banking app to check your account activity regularly. You can also sign up to receive text or email notifications through CUAlerts when your account balance goes above or falls below an amount you specify.
Establish a Secondary Overdraft Source
In addition to a business savings account, business members can apply for and establish a Business Line of Credit as a secondary overdraft source if they choose. Lines of credit are subject to finance charges in accordance with your business line of credit agreement.
Business Privilege Pay FAQs
Business members in good standing are eligible to have up to one (1) business checking account covered 60-days after membership has been established.
No. A business member can only have Privilege Pay on one business checking account per member account number.
Yes. Each time your account goes into overdrawn status, you’ll receive an overdraft notice informing you of the overdraft condition and the fee(s) assessed.
If you go beyond the $1,500 limit, items are returned for Non-Sufficient Funds and your account is charged a returned item fee of $40.00.
You have 30 days to repay the negative balance, however we will sweep other accounts as soon as the next day if there are funds available to bring the negative balance current. If your account remains negative for more than 30 days, Privilege Pay will be suspended or revoked until your account returns to good standing.
You can opt-out by calling us at 845.463.3011, visiting any of our branches, emailing us on our secure email form, or mailing your request.
After 60 days of membership, you will be automatically enrolled into our Privilege Pay program for your primary business checking account.
We offer a few options, including designating a savings account as an overdraft source as well as applying for and establishing a Business Line of Credit. Both options can provide peace of mind and save you money on Privilege Pay and returned item fees.
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Important Legal Disclosures & Information
1 Overdraft protection from a business savings account is subject to a fee in accordance with the Fee Schedule for Business Accounts and to the maximum number of transactions described in the transaction limitations section in HVCU’s Business Account Agreement.
2 Business Privilege Pay is not available for estate, organizational, custodial, infant compromise, memorial, or guardian/conservator accounts. Eligibility for Business Privilege Pay is based on multiple factors which include but are not limited to, age of your Business Membership, the standing of your Business Account, and status of your loans, among other factors.
3 A fee is assessed for each Business Privilege Pay item paid (maximum coverage of up to $1,500, including Business Privilege Pay item fees) as set forth in the Fee Schedule for Business Accounts. You have 30 days to repay the negative balance; however, we will withdraw funds from other business accounts as early as the following day if funds are available to bring the negative balance current.