Overdraft Programs

What is Virginia Beach Schools Federal Credit Union’s Privilege Pay?

Privilege Pay is an overdraft protection service for consumer checking accounts.  Our Privilege Pay is offered to add an extra layer of protection and safety net to your checking account.

If you don’t have enough money in your account’s available balance to cover a transaction, we may cover the transaction and overdrawn balance up to an approved limit.

Our Privilege Pay eliminates the embarrassment and expense of returned checks/items and protects your credit rating.

There is no fee for Privilege Pay unless you use the service.

Is this a line of credit?

Privilege Pay is not a line-of-credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

How do I avoid Non-sufficient funds (NSF) incidents?

VVBSFCU provides many ways to help you avoid NSF incidents.

We offer free SmartLink Internet banking, Mobile Banking with e-Alerts and Infoline phone banking so you can check your account’s available balance every day in real-time.

You also can review payments made, view paid checks you’ve written, transfer funds between your accounts, and receive updates when your balances drop below your pre-determined level.

Nevertheless, NSFs do occur, and when they do, we offer additional protection and options to help ensure that your payments go through as you intended.

What is my available balance?

Your account has two kinds of balances: the actual balance and the available balance.

Your actual balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account.

It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.

Your available balance is the amount available for withdrawal and includes:

  • all transactions performed but which may not yet be posted,
  • any uncollected funds and holds that may have been temporarily placed on your account for recently deposited items.

For more detailed information on available and actual balances review the Membership and Account Agreement available at either branch free of charge.

How does Virginia Beach Schools Federal Credit Union’s Privilege Pay work?

If you overdraw your account by a check, ACH electronic payment, bill pay, ATM or point-of-sale debit card transaction, Privilege Pay may cover your transaction even though you do not have enough money in your account’s available balance.

If you use Privilege Pay, your account will have a negative available balance.  You will incur a $19.99 overdraft fee; however, you will not incur any merchant fees.

What other types of overdraft protection are available?

If your established overdraft protection to cover a negative available balance through an automatic transfer from a savings account or approved line of credit, the Credit Union will access funds from these sources before using your Privilege Pay limit.

How do I sign up for Privilege Pay?

You do not have to sign up for Virginia Beach Schools Federal Credit Union’s Privilege Pay to work for your paper checks, bill pay or electronic (ACH) items you originated from your checking account.

However, you do have to “Opt-In” if you want the protection of VBSFCU’s Privilege Pay to apply to your everyday debit card and ATM transactions by completing an  Opt-In Form.

Can I opt-out of Privilege Pay?

You may opt-out of VBSFCU’s Privilege Pay for all transaction types and choose to have any item presented for payment without sufficient funds in your available balance returned NSF by calling 757-463-3650.

If you do not want us to pay your overdrafts, you must tell us (“opt-out”).

If you receive a direct deposit social security or other federal benefit checks, you must opt-out if you do not want us to apply those funds to repay an overdraft.

What does it cost to cover an overdraft?

We encourage you to maintain accurate records and practice good account management.

This will help you avoid writing checks or drafts without sufficient funds and incurring the resulting fees:

Ways to Cover Overdrafts? Fees (4/1/19)
Good Account Management $0.00
NSF Item (non-sufficient funds) $35.50 per item
Privilege Pay $19.99 per item
Overdraft Deposit Transfer (Automated) $5.00
Overdraft Line of Credit Transfer (Automated) No fee.  Interest may apply

Virginia Beach Schools Federal Credit Union Privilege Pay Guidelines

As a service to members in good standing and to help you avoid the fees that may be charged by third parties for “bad” checks, we may, at our sole discretion, approve your reasonable overdrafts up to a dollar amount (inclusive of fees).

A fee will be charged for each overdraft item or non-sufficient fund (NSF) item as outlined in our fee schedule.

There is no limit to the number of Privilege Pay, NSF or Overdraft Deposit Transfer fees that may be charged per day.

Returned items that are presented again may incur additional fees.  A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts.

Does everyone qualify for Privilege Pay?

VBSFCU’s Privilege Pay is extended to all account holders with checking accounts in good standing, defined as:

  1. Making regular deposits sufficient to cover transactions;
  2. Bringing the account to a positive available balance when overdrawn;
  3. There are no legal orders outstanding on your account;
  4. There is no negative check reporting history or financial history with the consumer reporting agencies, and:
  5. You are not in default on any loan or other obligation to us.
  6. We may, at our sole discretion, pay overdrafts up to the limits mentioned below, including our normal Non-Sufficient Funds or Privilege Pay overdraft charge(s).

How long do I have to make a deposit to cover my overdraft(s)?

You must deposit the full amount of the overdraft within twenty (20) consecutive calendar days, including any fees assessed, and maintain a positive available balance for at least one business day to continue to receive Privilege Pay.

Will I be notified if an overdraft occurs?

You may or may not be notified if an overdraft occurs, and you are expected to bring your account to a positive available balance as soon as possible.

The total fees you have paid for NSF items (both paid and returned, for the current month and year-to-date) will be on your monthly statement.

How much of a limit can I expect?

The Privilege Pay limit we offer ranges from $250 to $1,200 for personal checking accounts. The limit may vary depending upon your account status and financial history.

If you have multiple checking accounts, your limit will be applied to your primary checking account only.

Is my limit always the same?

Limits are subject to change daily without notification.  Therefore, just because we may pay your overdraft transaction today, does not guarantee that we will always pay your transaction when you do not have enough money in your account’s available balance to cover the payment.

Your Privilege Pay limit is not reflected in your available balance provided at the ATM, SmartLink Internet banking, mobile banking or phone banking.

As always, we encourage you to manage your finances responsibly; however, as long as you maintain your account in good standing, we may, as a courtesy, approve your overdrafts within your current available overdraft limit.

However, we reserve the right to pay overdrafts at our discretion.

If you do not have sufficient funds, and we return the item non-sufficient funds (NSF), you will be assessed the $35.50 NSF Fee.

Where do I go for additional information?

This is only a summary of our Privilege Pay overdraft service.

For more details on all our overdraft services to include transfers from another account and overdraft lines-of-credit call us or stop by one of our branches.

For additional information on payment of overdrafts, how transactions are posted to your account, and understanding your account balance call us or stop by one of our branches and request a copy of our Membership and Account Agreement.

Debit Opt-Out Form
Privilege Pay Waiver Form

If you are unsure of which option you use, please contact a Member Service Specialist.

What is the difference between my balance and my available balance? 

*Interest may apply.