Caro understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.
Overdraft Coverage Options
The choice is yours. Consider these ways to cover overdrafts:
Overdraft Protect Link to Another Deposit Account you have at Caro
$2 fee per transfer after 2 system-generated transfers per month1
Overdraft Protection Line of Credit
$2 fee per transfer after 2 system-generated transfers per month + interest1,2
$35 Overdraft Fee per item. Daily fees may apply.
1 Call us at 803.227.5555, send a secure Online Banking message, or come by a branch to sign up or apply for these services; 2 Subject to credit approval.
Services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Caro for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.
Allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction. Even if you have overdraft protection, Courtesy Pay is still available as secondary coverage if the other protection source is exhausted.
Transactions Covered with Courtesy Pay
Standard Coverage (no action required)
Extended Coverage (your consent required on consumer accounts)*
ACH - Automatic Debits
Recurring Debit Card Payments
Online Bill Payment Items
Internet Banking Transfers
Teller Window Transactions
Everyday Debit Card Transactions
*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Courtesy Pay coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.
What Else You Should Know
- Services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at Caro FCU for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.
- The $35 Overdraft Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Fee of $35. All fees and charges will be included as part of the Courtesy Pay limit amount. Your account may become overdrawn in excess of the Courtesy Pay limit amount as a result of a fee.
- If your account balance remains overdrawn for longer than 5 calendar days, we will charge your account a Negative Balance Fee of $5 every fifth day, beginning on day five, while the account remains overdrawn.
- The law permits us to pay items (such as checks or drafts) drawn on your account in any order. To assist you in handling your account with us, we are providing you with the following information regarding how we process the items that you write. When processing items drawn on your account, our general policy is to post items throughout the day and to post credits before debits. Our policy is to pay paper checks according to the dollar amount. We pay the smallest items first. ACH, ATM and debit card transactions are posted in the order received. However, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. Our payment policy minimizes the number of items that may result in an overdraft or NSF fee. If an item is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item (NSF). The amounts of the overdraft and NSF fees are disclosed elsewhere. We encourage you to make careful records and practice good account management. This will help you to avoid writing checks or drafts without sufficient funds and incurring the resulting fees. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Fees assessed.
- Although under payment system rules, Caro may be obligated to pay some unauthorized debit card transactions, Caro will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
- Giving us your consent to pay every day debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Courtesy Pay limit and may also help you avoid overdrafts in excess of your available balance that could result in suspension of your debit card. If you consent to Extended Coverage on your consumer account, it will remain on your account until you otherwise withdraw it.
- Caro authorizes and pays transactions using the available balance in your account. Caro may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Courtesy Pay limit and any available overdraft protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available overdraft protection, but does NOT include the Courtesy Pay Limit. For accounts with Extended Coverage, the Courtesy Pay Limit is included in the available balance for authorizing ATM and everyday debit card transactions. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Courtesy Pay limit may be used to authorize and pay a transaction.
- Please be aware that the Courtesy Pay amount is not included in your available balance provided through online banking, mobile banking or Caro’s ATMs.
- We may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Courtesy Pay limit (as described in this disclosure). Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Courtesy Pay limit, is positive and then you contact us.
- We may also suspend your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you contact us and you make sufficient deposits so that your account balance is positive.
- If your debit card is suspended, you will be unable to use your debit card for purchases or to access your account at the ATM, and if you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
- Courtesy Pay limits of up to $500, or $1000 with minimum recurring monthly direct deposits of $500 are available for eligible Personal Checking accounts opened at least 35 days in good standing and $500, or $1000 with minimum recurring monthly direct deposits of $500, for eligible Business Checking accounts opened at least 35 days in good standing.
- Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- Courtesy Pay may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have Courtesy Pay reinstated.
- 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 Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand. If you have any questions about Overdraft Protection or Courtesy Pay, please call us at 803.227.5555 or visit a branch.