1. What is Courtesy Pay overdraft protection?
The Courtesy Pay overdraft protection you may already have on your checking account allows us to cover your insufficient funds items on debit card purchases, point-of-sale (POS) transactions, ATM withdrawals, checks and ACH transactions, up to your approved limit. You will be charged $28 per covered overdraft transaction. This means that instead of returning a check to the merchant because of insufficient funds, the credit union may pay your item, saving you additional charges from the merchant. After 8/15/2010 you must tell us if you wish to have Courtesy Pay overdraft protection for one-time debit card purchases made in person, by telephone or online; POS transactions, and ATM withdrawals. Your recurring debit card purchases (such as monthly gym memberships), checks, and ACH transactions will continue to be covered by Courtesy Pay and will be charged a fee if we pay these transactions when they overdraw your account. You may opt out of Courtesy Pay at any time by asking us to remove the service from your account(s).

3. Who is eligible for Courtesy Pay overdraft protection?
You must have a checking account and be a member in good standing to be covered by Courtesy Pay overdraft protection. To have your ATM/POS transactions and one-time debit card purchases covered, you must opt in for Courtesy Pay overdraft coverage.

4. If I have another form of overdraft protection set up for my checking account, do I still need Courtesy Pay overdraft protection?
We will first attempt to clear the transaction by using other overdraft protection you may have set up, including transferring any available funds from your savings account or line of credit.

Depending on how the overdraft protection is set up, you may choose your savings account or your line of credit to cover the overdraft. If there are no funds available in any of these overdraft protection options, your one-time debit card purchases and ATM/POS transactions will be denied. That’s where Courtesy Pay overdraft coverage can help. It may allow your debit card to keep working if you’re not signed up for overdraft protection from your other accounts. This can help when you are facing an unexpected emergency.

5. Are there fees?
There is no charge if you don’t use the service. But you will be charged a $28 fee for each item that brings your account balance to a negative status, regardless of the amount of the transaction.

6. When do I have to make my deposit to avoid a Courtesy Pay overdraft fee?
You must make a deposit prior to any transaction posting to your account to be covered without a fee.

7. If I sign up for Courtesy Pay overdraft protection, will my debit card charges always go through?
No. Whether or not a transaction will be paid is discretionary and we reserve the right not to pay. Most overdrafts are paid, but there is no guarantee.

8. How much time do I have to cover an overdraft paid by Courtesy Pay?
You have up to 20 days to cover the overdraft, either through a direct deposit, transfer of funds or a deposit at one of our branches, shared branches, or at an ATM or you will lose your Courtesy Pay privileges. If your account remains overdrawn after 35 days, CUNJ will close your checking account, report it to ChexSystems, and refer it to a collection agency for follow-up.

9. If I don’t sign up for Courtesy Pay overdraft protection, when will you stop covering my ATM withdrawals and one-time debit card purchases?
If we do not receive an opt-in authorization from you, we will stop paying your one-time debit card purchases (made in person, by telephone, or online) and ATM/POS transactions beginning 8/15/2010.

10. What about my automatic debit card payments that I’ve set up with a merchant?
Debit card purchases that are set up to bill automatically (like a gym membership) may continue to be authorized at our discretion even though you do not sign up for Courtesy Pay overdraft protection. If this type of recurring debit card transaction overdraws your account and we pay the overdraft, a fee will be assessed.

11. What does Courtesy Pay overdraft protection cover?
Courtesy Pay overdraft protection may cover the following types of transactions:

• Checks
• ACH transactions
• One-time debit card transactions made in person, by telephone, or online*
• ATM/point of sale transactions*

*After August 15, 2010 these types of overdraft coverage will require you to opt in.

12. What if I decide I don’t want Courtesy Pay overdraft protection?
We’re happy to talk with you about other options for managing your account. Call 1-800-538-4061 x3410 and if you’re certain you don’t want your debit card overdrafts authorized when you don’t have sufficient funds in your account, we can remove this service. But try to talk with us before 8/15/2010 so that you can keep your account working as conveniently as it does now.

13. What if I change my mind and opt to have Courtesy Pay overdraft protection for my account?
You will need to complete an opt-in form at any of our branches, or call us at 1-800-538-4061 x3410 and tell us that you want to opt-in. Once we’ve sent you a confirmation of your request, it may take up to 30 days to reinstate Courtesy Pay protection on your checking account.

14. Can I opt in by phone to keep my Courtesy Pay coverage?

Yes, you can easily opt in by calling our member services department during business hours toll-free line, 1-800-538-4061 x3410.

This document is for information only. You are under no obligation to sign up for Courtesy Pay. For free financial information on how to balance your checkbook you can contact our BALANCE^SM Financial Fitness Program at 1-888-456-2227.