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Disclosure - Overdraft Protection Options

Available with Essential Checking, Enhanced Checking, & Elevated Checking Accounts



Overdraft Protection Automatic Transfer from Another Deposit Account you have at MSCU1


Courtesy Pay

$37.50 Courtesy Pay Fee per item

1Call us at 203-402-7400, email us at info@mscu.net, or come by a branch to sign up or apply for these services

Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at Mutual Security Credit Union. 

Courtesy Pay 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.

Courtesy Pay does not apply to Freedom Checking Accounts. For Freedom Checking Accounts, we may decline or return transactions that would result in an overdraft. Transactions that you make may cause your account to overdraw but we will not assess an overdraft or NSF fee. For example, preauthorized transactions and other transactions may post to your account even when the balance in your account is not sufficient to pay the transaction.

Transactions Covered with Courtesy Pay

Standard Coverage
(No action required)

Extended Coverage
(Your consent is required on consumer accounts.
Extended Coverage is the only option for Business Accounts)*


ACH - Automatic Debits

Recurring Debit Card Payments

Online Bill Pay Items

Teller Window Transactions

ATM Transactions



Everyday Debit Card Transactions



If you would like to select Extended Coverage for future transactions:

*If you have a consumer account, you have the option to request “Standard Coverage,” which includes all of the transactions listed above, except ATM and everyday debit card transactions. Both consumer and business accounts can discontinue Courtesy Pay in its entirety by contacting us at 203-402-7400 or by sending us an e-mail at info@mscu.net.


What Else You Should Know

A link to another account may be a less expensive option than Courtesy Pay. A single larger overdraft will result in just one (1) Courtesy Pay Fee; as opposed to multiple smaller overdrafts which will result in several Courtesy Pay fees. Good account management is the best way to avoid overdrafts. Use our internet/online, mobile, and telephone banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.

The $37.50 Courtesy Pay fee is the same fee amount that is charged if a check or other transaction is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Courtesy Pay fee or a NSF fee of $37.50. 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.

We will limit the total number of Courtesy Pay fees and NSF fees to four (4) per day. We will not charge a Courtesy Pay fee if the resulting change in the negative balance is less than $5.

Our general policy is to post items throughout the day and to post credits before debits. Paper checks are posted from lowest check number to highest check number, while ACH debits are posted from lowest dollar amount to highest dollar amount. ATM and debit card transactions are posted in the order in which the items are 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. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of Courtesy Pay fees or NSF fees assessed.

Although under payment system rules, Mutual Security Credit Union may be obligated to pay some unauthorized debit card transactions (transactions in which the merchant did not verify if funds were available to pay the transaction prior to processing the transaction, and the transaction overdraws your account), Mutual Security Credit Union 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 everyday debit card and ATM overdrafts on your consumer account may result in you incurring Courtesy Pay fees for transactions that we would otherwise be required to pay without assessing a Courtesy Pay 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.

Understanding your Available Balance:

Your account has two kinds of balances: The Ledger Balance and the Available Balance.

Mutual Security Credit Union authorizes and pays transactions using the available balance in your account. Mutual Security Credit Union may place a hold on deposited funds in accordance with our Member Contract and Share Deposit Agreement, which will reduce the amount of 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 Mutual Security Credit Union’s ATMs.

Mutual Security Credit Union will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two (2) business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, a Courtesy Pay fee may be assessed.

Except as described in this disclosure, Mutual Security Credit Union is not obligated to pay items if your account does not contain available funds (including the Courtesy Pay limit) to cover the item(s) and the amount of any fee(s).

Understanding Courtesy Pay Limits:

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 thirty-one (31) days for a minimum of one (1) business day. You must bring your account balance positive for at least one (1) 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 Member Contract and Share Deposit Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.

Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

If you have any questions about Overdraft Protection or Courtesy Pay, please call us at 203-402-7400 or visit one of our convenient locations.