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What is overdraft protection?

At STCU, overdraft protection is called Privilege Pay. The service covers your accidental overdrafts, so that merchants — and credit bureaus who calculate your credit score — never know about your overdrafts.

STCU members in good standing automatically get Privilege Pay for checks and Automated Clearing House (ACH) payments up to $1,000, including fees, that may have overdrawn your personal checking or money market accounts.

For every check or other item that STCU covers, we charge a $29 overdraft fee. That's far less than traditional nonsufficient funds (NSF) fees charged by most stores for an overdraft. If we cover an overdraft, we notify you by mail that Privilege Pay was activated.

If you have questions about your account, please review your account history in online banking, then contact us directly if needed.

What does Privilege Pay cost? And how quickly must I repay?

Good questions! As stated above, there is a $29 overdraft fee for each check or other overdraft item we cover for you. You have 30 days to repay your overdraft and the fee. We will not pay an overdraft for you in excess of any limit we have established for your account type.

What about debit card transactions?

Debit card overdrafts can add up fast. That's why STCU invites you to opt-in for Privilege Pay on your STCU debit card. With your prior approval, we will cover debit card transactions that may overdraw your personal checking account.

Opt-in by completing and returning the Privilege Pay-debit card form to STCU.

Which accounts are eligible?

All STCU checking and money market accounts are eligible for Privilege Pay, provided the account owners meet the eligibility requirements described below.

STCU will also cover debit card transactions that overdraw your checking account after you have completed and returned the Privilege Pay-debit card form to STCU.

Which payments are eligible?

Privilege Pay may be extended for checks presented at any STCU branch location, checks clearing through the Federal Reserve System, and payments clearing through Automated Clearing House (ACH). It cannot be used to cover overdrafts that result from an automatic transfer between accounts at STCU or for any mortgage payments on a home loan.

Privilege Pay can also protect debit card transactions once you have completed and returned the Privilege Pay-debit card form to STCU.

Who is eligible for Privilege Pay?

STCU members eligible for Privilege Pay overdraft protection must:

  • Be 18 or older, with an STCU checking or money market account.
  • Have been an individual member for 90 days or more.
  • Have no past due loan payments at STCU.
  • Have not caused a financial loss (charge off) to STCU.
  • Not be currently enrolled in a debt management program.

How do I sign up?

There is no need to sign up for Privilege Pay! Your checks and Automated Clearinghouse (ACH) transactions are automatically covered as a service to qualified members of STCU.

However, to add Privilege Pay for debit card transactions, you must first complete and return the Privilege Pay-debit card form to STCU.

Can I opt out?

Yes, if you want to opt out of Privilege Pay on your checks and ACH transactions, you must first complete and return the option to waive or reinstate Privilege Pay form to STCU.