Mazuma Credit Union
Overdraft Selection Options

Overdraft transactions are those transactions that you make (and we pay) that cause your account balance to become negative/overdrawn, or that cause your account to be further overdrawn if a negative balance already exists. For your convenience, we offer an Overdraft Transfer Protection Service and three Overdraft Coverage Program Options:

Overdraft Transfer Protection Service:

With the Overdraft Transfer Protection Service, you can link your other Mazuma accounts and/or Visa line of credit to your checking account. This service will transfer available funds from another share or Visa line of credit to help cover an overdraft. This service can be setup upon request, and is distinct from our Overdraft Coverage Program. However, you may request to have your account covered by both our Overdraft Transfer Protection Service and our Overdraft Coverage Program. A $3 fee is assessed for each Overdraft Transfer. This Service is often less expensive than the Overdraft Coverage Program as funds transferred from another account or a Visa line of credit could help you avoid incurring Overdraft Fees or Returned Item Fees.

The primary owner of the account must make the overdraft transfer set up request. Your account must be in good standing at the time of the transfer in order for the transfer to take place.

No form is required to be signed to opt into this coverage; it may be selected over the phone or in-branch. It may also be requested through a secure email via online banking. To request overdraft transfer protection please give us a call at 913-574-5000.

Overdraft Coverage Program Options:

There are times you may not have available funds to use or may not elect the Overdraft Transfer Protection option. The credit union also offers the option of Overdraft Privilege for the times you may not have available funds to use. Overdraft Privilege is extended to eligible Members with accounts in good standing.

If you have selected both Overdraft Transfer Protection and Overdraft Privilege, the Overdraft Transfer Protection option will be utilized prior to the Overdraft Privilege.

Overdraft Privilege is a privilege and can be removed at any time at the discretion of Mazuma. Likewise, you may opt in or out of Overdraft coverage at any time by calling 913-574-5000.

Overdraft Privilege assists Members with short-term financial payment needs, provides Members with convenience, and affords Members with a less expensive alternative to check cashing and payday loan establishments.

You have the option to choose from two different coverage plans, or you can opt to have no coverage at all, which is also known as opting out. The two plans that Mazuma offers are Standard Coverage and Extended Coverage. Although there are similarities between the two plans, you can only be enrolled in one plan at any given time. You can change plans at any time.

Standard Coverage: With this option, which is our default option unless you choose another, we may authorize and pay checks, ACH payments, automatic bill payments, and in-person transactions that overdraw your account (or are received on an already overdrawn account). However, we will usually not authorize and pay ATM or everyday debit card transactions that would overdraw your account if you select Standard Coverage.

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

Standard Coverage will NOT cover ATM or everyday debit card transactions. If the amount of an ATM or everyday debit exceeds your available balance, the transaction could be declined. The card will be available for use again when funds are available.

A $28 fee applies for each of these covered transactions which creates an overdraft (or is paid on an already overdrawn account). There is no limit to the number of fees that can be posted to your account each day.

Extended Coverage: In addition to covering the transactions stated for Standard Coverage above, Extended Coverage also covers ATM and everyday debit card transactions that would overdraw your account (or are received on an already overdrawn account). We do not authorize and pay overdrafts for ATM and everyday debit card transactions unless you elect the Extended Coverage option.

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

A $28 fee applies for each of these transactions that we pay that creates an overdraft (or that is paid on an already overdrawn account). There is no limit to the number of fees that can be posted to your account each day.

No Coverage: You can elect to remove Overdraft Coverage from your account. This means that we will usually not authorize or pay any transactions that would overdraw your account (or that would further overdraw an already negative account). These transactions may be returned to the payee, and will result in a $28 Returned Item Fee.

You can choose to opt out of Overdraft Privilege completely. You will have to tell Mazuma to remove the coverage, and this can be requested at any time either in person or via the phone.

What this means to you: This means that if any transaction (check, debit card authorization, ACH, etc) is presented and it exceeds the balance in the account, the transaction may be declined and or returned unpaid, and you may receive an NSF fee in addition to any fee that may be charged by the merchant for a transaction that is returned as insufficient. If you use your VISA debit card and the amount of the purchase exceeds the available balance, the transaction could be declined.

Selection of the No Coverage option does not guarantee that the account will not go into a negative balance status. As transactions can be authorized by merchants for amounts less than the final posting amount, there may be situations where you use your debit card and their account becomes negative by the time the transaction posts. In these cases, and when you have selected No Coverage, Mazuma does not assess a fee.

Additional Notes

We pay overdrafts at our discretion, which means that we do not guarantee that we will authorize or pay any type of transaction. A $28 overdraft fee will be assessed for each covered overdraft transaction that we pay. There is no maximum or daily limit on the number or total amount of fees you can be charged for overdrafts.

If we do not pay an overdraft transaction for any reason, the transaction will be declined or the item will be returned. A $28 returned item fee will be assessed for all transactions drawn on your account that we return for non-sufficient funds. The merchant or other payee, with whom you conducted the transaction, may also charge you a fee for each item returned for non-sufficient funds.

You may change or revoke your Overdraft Coverage Option and signup or withdraw from our Overdraft Transfer Protection Service at any time. For more information about our Overdraft Coverage Program or to change or revoke your Overdraft Coverage, please call Mazuma at 913-574-5000, visit one of our branches, or mail this signed form to Mazuma Credit Union at 7260 West 135th Street, Overland Park, KS 66223. Please call or visit a branch to request Overdraft Transfer Protection. (Note: Our fees are subject to change at any time. You will receive advance notice of fee changes when required.)

Which option is best for you?

Mazuma is happy to review coverages with you at any time either in-branch or over the phone. However, ultimately the decision is up to you. Every Member situation is unique, and Mazuma is here to assist you with any questions. You may change your selection at anytime by visiting one of our branches or by calling us at 913-574-5000.

For additional information, please review the following resources:

Overdraft Privilege Disclosure
Selection Form
Glossary
Payment of Overdraft Items
Understanding your account balance and transaction posting

Glossary

Financial Institutions use a lot of terms when talking about overdrafts on accounts. Below is a list of the most commonly used terms and the meanings as they relate to accounts at Mazuma.

Available Balance: All the money in a share account with deductions for specific holds and all known pending authorizations.

Automated Clearing House (ACH): An electronic network which processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposits while ACH direct debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills.

Authorization: As it relates to debit or credit card transactions, a hold placed on an account when a purchase is made using a debit or credit card. This hold can expire in as little as 30 seconds or as long as 3 days.

Coverage Limit: This is the amount of coverage, either $500 or $750, an account has qualified for under the ODP program.

Current Balance: All money in an account without any deductions for any sort of holds or pending authorizations.

Collected Balance: All money in an account with deductions for specific holds, such as general purpose holds, Regulation CC holds, or pledge holds.

Debit Card: The access device granted that can be used to electronically access funds in either a checking or savings account. It is owned by the named cardholder and can be used for both Signature and PIN transactions.

Member in good standing: As it relates to Overdraft Coverage, are those account meeting all four of the following conditions: making deposits sufficient to cover transactions and bringing their accounts current at least once every 30 days; those not having caused the credit union a loss, are not in serious delinquency or default greater than 30 days and; those with no legal orders against their account.

Non-Sufficient Funds (NSF): Instances when a transaction attempts to post to the account (any share type), but due to a lack of funds was unable to post.

Opt-In: The affirmative consent given by a Member to elect coverage.

Overdraft: Transactions which takes the collected balance into the negative will be considered an overdraft. When the item posts to the account, a fee may be assessed.

Overdraft Privilege (ODP): A non-contractual elected courtesy service available for checking accounts which allows an account to be overdrawn. The account must be brought to a positive balance within 30 days.

Overdraft Transfer Protection: The option to avoid a negative balance by having alternate shares or loans linked together to cover transactions. There is a fee for this transfer. An account can have both overdraft transfer as well as overdraft privilege. Examples of linked accounts can include primary shares, special shares, and Visa lines of credit.

Overdrawn: When the collected balance in the account is in a negative status.

Payment of Overdrafted Items

An overdrafted item is a transaction that, when posts, causes you to have a negative collected balance in your account. The collected balance is all money in the account with deductions for specific holds such as general purpose holds, Regulation CC check holds, or pledge holds. Mazuma can choose to pay overdrafted items through the Overdraft Privilege program. To be clear, Mazuma doesn't have to pay; this isn't a right of the consumer or an obligation on the part of Mazuma. Mazuma can stop paying overdrafts at any time and without giving any kind of prior notice.

Your checking account current balance can be viewed at the ATM, both your current and available balance can be viewed in online banking, and is also available for review over the phone or in the branch.

Make sure that your account is restored to a positive balance within thirty days, and for at least 24 hours, to maintain good standing. If your account is not repaid within 45 days, the credit union may pursue collection action.

Mazuma will not pay overdrafts for ATM or everyday debit card transactions unless you have opted in. If you would like to opt out of the Overdraft Privilege services for check, ACH, and debit card bill payment transactions, contact our Member Relationship Center at 913-574-5000.

Understanding your account balance and transaction posting

Your checking account current balance can be viewed at the ATM, both your current and available balance can be viewed in online banking, and is also available for review over the phone or in the branch.

Below, you will find examples of how Mazuma handles debits and credits to your account. Each debit and credit will create a change to your account balance.

CREDITS

Credits presented by ACH are posted twice a day, while credits presented through other electronic methods are usually posted as soon as Mazuma receives them. Checks presented by Mobile Deposit are posted in the afternoon of every business day. Cash presented during business hours is posted and available for immediate use. Checks presented in person and through the ATM are posted immediately, although they may be subject to a hold. When a hold is placed on a check, in most cases, $200 is available for immediate use. In most cases, the remainder of the funds are available in two business days. Your available balance may not reflect the most recent deposits to your account. For more information, check out the Mazuma Funds Availability Policy


DEBITS

There are many ways a debit can be presented on your account. Mazuma is not in control of how a merchant presents debit items for payment. A general description of the types of debits and how they are handled can be found below.

ACH Debits ACH debits are posted to your account after the ACH credits are posted. ACH debits are processed in the order in which they are received.
Checks It is important to know checks can clear your account in various ways and at various times throughout the day. Besides the traditional method of checks being sent from the receiving account to Mazuma in batches, merchants can also submit the checks electronically, creating an immediate clearing. The person you wrote the check to can also come into any of our Mazuma locations and the check will clear manually when presented. When checks are received in a large batch, checks are cleared by check number, from smallest to largest.
Point of Sale (POS) Debit Transaction Most POS transactions are transactions in which you either entered your PIN number or the transaction was for $50.00 or less. In most cases, the authorization and posting of POS transactions occur within a few minutes of each other. It can take up to three business days for the transaction to post to the account and the authorization to be released.
Signature Debit Transactions Sometimes referred to as a "credit" transaction, Signature transactions do not require a PIN to be entered; instead your signature is used to complete the transaction. Transactions made over the phone or online are also considered Signature transactions. Signature transactions may be processed the same day or can take several days to process depending on how the merchant chooses to submit the transaction for payment. When Mazuma receives an authorization, we create a hold on the account and reduce your available balance. The authorization hold does not affect the current balance of the account, only the available balance. Authorizations made by your debit card expire from your account automatically in 3 days; however, a merchant may take up to 6 months to present the item for final payment. These authorizations and final payment requests are received throughout the day and are posted to your account as they are received.
For both POS and Signature transactions Authorization holds and final payment requests are received throughout the day and are posted to your account as they are received. Mazuma cannot control the amount of an authorization hold (some gas stations request $1 while others request $75) OR when a merchant will submit a transaction for payment. The amount of the authorization may not match the final amount presented for payment by a merchant. For example, at the gas pump the merchant may only request an authorization of $1.00 as they do not know how much gas you will need. The actual total amount of your purchase will be submitted for payment. Examples of other places where this occurs include restaurants, hotels, or rental car agencies.

Your Account Balance

Your account at Mazuma has three types of balances:

Available Balance All the money in a share account with deductions for specific holds and all known pending authorizations.
Collected Balance All money in an account with deductions for specific holds, such as general purpose holds, Regulation CC holds, or pledge holds.
Current Balance All money in an account without any deductions for any sort of holds or pending authorizations.

Your current balance reflects the funds that are in your account, but does not account for any pending holds or authorization. Therefore, when checking your account balance, it is always a best practice to use the Available balance to determine your available funds.

Your available and current checking account balance can be viewed at the ATM, in online banking, and is also available for review over the phone or in the branch. Text alerts for balance updates are also available. Mazuma uses the collected balance to determine if an Overdraft or NSF fee should be charged. Mazuma uses the available balance to determine if an electronic transaction (like a debit card transaction) can be approved for authorization.

You may change or revoke your Overdraft Coverage Option and signup or withdraw from our Overdraft Transfer Protection Service at any time. For more information about our Overdraft Coverage Program or to change or revoke your Overdraft Coverage, please call Mazuma at 913-574-5000, visit one of our branches, or mail this signed form to Mazuma Credit Union at 7260 West 135th Street, Overland Park, KS 66223. Please call or visit a branch to request Overdraft Transfer Protection. (Note: Our fees are subject to change at any time. You will receive advance notice of fee changes when required.)

Examples of Account Balances:

At the beginning of the day you check your account balance and see that you have $100 as your current and available balance.

You then head to work, and stop for gas. A $1.00 authorization is given when you swipe your debit card and engage in a signature debit transaction. You actually spend $20.00. Your current balance is now $100 and your available balance is now $99.

You go out with friends for lunch. You pay with a signature debit transaction. The restaurant requests a $15.00 authorization. You spend $10.00 on food plus leave a $2.00 tip. Your current balance is still $100 and your available balance is now $84.

A check is cleared on your account for $75.00. The gas authorization has also expired; however, the actual amount of your purchase ($20) has not yet posted. Your current balance has been reduced to $25.00 and your available balance is now $10.00 ($100 less $15 less $75).

Two days later the transactions for the gas and for lunch post to your account. Your current balance and your available balance are now -$7.00 ($100 less $75 less $20 less $12).

Depending on your overdraft selection you may be charged an Overdraft fee of $28.00 for each item that drew the account negative.