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Overdraft Privilege

Life happens! Belco Community Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Privilege can help. An overdraft occurs when you do not have enough available money in your account to cover a transaction, but we pay it anyway.

Overdraft  Privilege
Overdraft Protection
Overdraft Privilege allows you to overdraw your account up to the overdraft limit for a fee in order to pay a transaction. Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.
Overdraft Protection services apply to all types of transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from a savings account or line of credit (finance charges may apply) you may have at Belco. Please note that overdraft lines of credit are subject to credit approval.


Accounts will be charged the standard overdraft fee of $35 for handling each overdraft created by check, ACH, Point-of-Sale, ATM withdrawal, or other electronic item that is paid, and $38 for items returned. There is no limit per day on the total fees we can charge you for overdrawing your account. An overdrawn account balance must be repaid within thirty (30) days. We may not pay items under your overdraft privilege if you do not maintain your account in good standing by bringing your account to a positive balance within every thirty (30) day period for a minimum of 24 hours; if you default on any loan or other obligation to Belco Community CU; or if your account is subject to any legal or administrative order or levy.

We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We will NOT authorize and pay overdrafts for the following types of transactions without your consent:

  • ATM transactions
  • Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What else you should know about Overdraft Privilege:

  • Good account management is the best way to avoid overdrafts. Use our mobile banking, Internet banking, and telephone banking services to keep track of your balance.
  • A link to a savings account or line of credit is a less expensive option than an overdraft.
  • Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account and Disclosure Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.
  • We post items in the following order: 1) ACH credits, 2) ACH Debits (in the order received), 3) Checks, 4) ACH transfers, 5) ATM and Debit Card transactions (in the order received), 6) Bill Payer debits; however, exceptions will occur. The order in which transactions are posted may impact the total amount of the overdraft or return fees assessed.
  • A single, larger overdraft will result in just one fee, as opposed to multiple, smaller overdrafts.
  • Belco Community Credit Union authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. Belco Community Credit Union may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction.
  • Belco Community Credit Union will place a hold on your 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 our account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.

Sign up for Overdraft Privilege today with these forms

Overdraft Privilege Consent Form

Discretionary Overdraft Privilege Disclosure