Defense against overdrafts
Flat Rate Courtesy Pay
Courtesy Pay covers overdrafts, up to an approved limit, in exchange for a flat fee per overdraft transaction. Instead of returning a check because of insufficient funds, you pay your member’s check, saving them charges from the merchant, in addition to your insufficient funds fee. This saves the member the embarrassment an inadvertent overdrawn check can cause while helping to protect their credit rating.
Tiered Rate Courtesy Pay
Under a tiered approach to courtesy pay, most credit unions see a significant boost to their monthly income compared to the traditional flat rate approach. Offering all the benefits of its flat rate predecessor, Tiered Rate Courtesy Pay is highly recommended by industry leaders over the traditional Flat Rate Courtesy Pay program – and a significant percentage of your members will actually pay lower fees.
Case Study: Tiered Courtesy Pay Increases Credit Union Income 11%