What Is Overdraft Protection?

Overdraft protection is a program or solution a financial institution might offer to allow transactions to be completed even when the member doesn't have enough in their account to cover the transaction. This can keep checks from bouncing or debit card transactions from being rejected at the point of sale. At First Service, we offer a few overdraft protection options to help ensure your peace of mind. These include a Courtesy Pay program that can cover checks, electronic payments, debit card purchases, and transfers, as well as our Overdraft Transfer program, which automatically transfers funds from a First Service savings account, money market account, or personal line of credit to your checking account to cover overdrafts.

Compare Overdraft Protection Options

All eligible accounts are automatically opted in to Courtesy Pay for checks, electronic payments, and transactions processed through the Automatic Clearing House (ACH). If you would like Courtesy Pay to also pay one-time debit and ATM transactions, all you have to do is opt in.

Select and combine one or more Overdraft Protection programs to ensure adequate coverage and peace of mind. If you have Overdraft Transfer combined with Courtesy Pay, we will always pay the overdraft by transfer method before using Courtesy Pay. Courtesy Pay fees are waived on all transactions of $5.00 or less.

Overdraft TransferCourtesy PayCourtesy Pay Plus
DescriptionIf your account is overdrawn, we’ll automatically transfer funds from your savings account or line of credit to pay checks, online bill payments, debit card purchases and ATM withdrawalsThis option is included with your account if you meet certain criteria. We generally let your online bill payments and checks go through, but decline debit card transactions and ATM withdrawals.If you select this option, we may authorize debit card transactions and ATM withdrawals that overdraw your account.
ATM OverdraftsCovered for $5.00DeclinedCovered for $30.00
Debit Card OverdraftsCovered for $5.00DeclinedCovered for $30.00
Online Bill Payment OverdraftsCovered for $5.00Covered for $30.00Covered for $30.00
Check OverdraftsCovered for $5.00Covered for $30.00Covered for $30.00
ACH Transaction OverdraftsCovered for $5.00Covered for $30.00Covered for $30.00

Requirements for Courtesy Pay

To take advantage of our Courtesy Pay program, members must meet the following criteria:

  • Age 18 or older

  • Qualifying checking account in good standing (excludes Fresh Start Checking)

  • No delinquent loans

  • No tax levies

  • Account must be at a positive balance at least once every thirty days

Overdraft Protection FAQs

Yes. You can combine Overdraft Protection programs to ensure adequate coverage and peace of mind. If you have Overdraft Transfer protection combined with Courtesy Pay, we will always pay the overdraft by transfer method before using Courtesy Pay.

Courtesy Pay is a service offered to checking account members and provides a limited level of protection from non-sufficient fund (NSF) service charges for returned checks and declined ATM or debit card transactions. Members must opt in to extend Courtesy Pay coverage to include ATM or debit card transactions that overdraw the account. It is not a loan – it is a courtesy extended to qualified members in good standing to cover items, up to your eligible limit. We pay overdrafts at our discretion, which means that we do not guarantee that we will always authorize and pay any type of transactions.

You can change your Courtesy Pay preferences by logging in to First Service Digital Banking and following these steps:

  1. Click on Additional Services in the menu under Settings.
  2. Click Courtesy Pay to see an explanation of the service, and a list of any accounts eligible for Courtesy Pay with an on/off switch to the right of each one. The toggle will be gray if the account has not “Opted In.”
  3. Click on the accounts that you want to “Opt In” and the toggles will turn green.
  4. After you’ve made your selections, check the box to agree to the terms and click Save Changes to enroll the account(s) into Courtesy Pay.

  1. Once you’ve logged in to digital banking, navigate to Overdraft Transfer Protection under Accounts.
  2. You will see a dropdown menu that shows all of your accounts that are eligible for overdraft protection.
  3. Select the account for which you'd like to set up overdraft protection.
  4. Once you've selected an account, you can Add, Delete, or Arrange the overdraft settings by following the prompts on screen.

We provide 24/7 access to your accounts through First Service Digital Banking, as well as monthly statements to let you know your available account balance. You can also set up free Alerts within digital banking to notify you immediately of account activity including overdrafts. Once your account has been overdrawn for 5 days, we will also send you periodic reminder notices advising you of your overdrawn account until you bring your account to a positive balance.

This is how Courtesy Pay will work:

  1. You use your debit card, conduct a transfer, or write a check from your checking account.
  2. If funds are not available, and you have exhausted your other overdraft resources, Courtesy Pay will allow transactions to clear your account up to your eligible amount based on the Courtesy Pay coverage on your account. Checks, electronic transactions, and recurring debits are included in the standard Courtesy Pay program. Members must opt in for extended coverage that includes one-time debit card and ATM transactions.
  3. We will assess a $30.00 service charge for each transaction over $5.00 that is covered by your selected Courtesy Pay option. You will not be assessed a Courtesy Pay service charge for transactions of $5.00 or less.

Courtesy Pay will save you non-sufficient fund (NSF) service charges and embarrassment from merchants when you make a mistake in your checkbook, have an unplanned expense, or run short on cash between paydays. Instead of returning transactions unpaid, First Service automatically pay them if you qualify.

Members over the age of 18 with accounts in good standing may qualify for Courtesy Pay when the account is opened for at least thirty days. Good standing means that there are no First Service loan obligations in default, there are no liens for any legal or administrative order, and the checking account balance is positive for at least 24 hours in any 30-day period.

The total amount you can overdraw using Courtesy Pay will depend on how long you have been a member and whether you have a direct deposit set up on your checking account.

Account Type

Length of Membership

Direct Deposit

Courtesy Pay Limit

Checking Account

Less than 30 Days



Less than 1 Year





More than 1 Year





With Courtesy Pay, you can avoid any inconvenience or fees from merchants when you make a mistake in your checkbook, have an unplanned expense, or run short on cash between paydays. Instead of returning transactions unpaid, First Service may automatically pay them and assess a $30.00 Courtesy Pay service charge for charges of $5.00 or more. If you do not opt in to Courtesy Pay or do not qualify, First Service will return any transactions unpaid and assess a $30.00 NSF service charge.

The Courtesy Pay service charge will not be applied to transactions of $5.00 or less that overdraw your account.

If you have established Overdraft Transfer to transfer funds from your savings or line of credit, we will always pay the overdraft by this method before using Courtesy Pay.

No. The credit union is allowing you to overdraw your account to your Courtesy Pay limit as a non-contractual courtesy. This discretionary service can be withdrawn at any time by First Service.

A $30.00 Courtesy Pay service charge will be assessed for each transaction over $5.00 that overdraws your account.

Checks and other transactions on a checking account with us are paid based on your available balance, and not the actual balance.

Your actual balance is the actual amount of funds in the account (based on credits and debits posted to the account at that time).

Your available balance is generally equal to the actual balance, less the amount of any holds placed on recent deposits, holds placed for other reasons, and holds for pending transactions (such as debit card purchases) that we have authorized but that have not yet posted to the account.

If an item presented for payment against your account exceeds the available balance, we will treat it as an overdraft even if the actual balance exceeds the amount of the item.

You have up to 30 days to pay any overdrawn amount, including Courtesy Pay service charges. However, depending on the situation, we can ask for repayment at any time. Any deposits you make will be applied to the overdrawn balance first.

This has no effect on your credit rating if you bring your overdrawn account to a positive balance in a timely manner, which we ask you to do within the required 30 days.

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