Courtesy Overdraft Protection
Life happens! Desert Financial understands that unexpected overdrafts occur from time to time — overdraft coverage can help.
What are my overdraft coverage options?
The choice is yours. Consider these ways to cover overdrafts:
|Link to a deposit account you have at Desert Financial1||$5 fee per transfer|
|Overdraft Protection Line of Credit1, 2||$5 transfer fee + interest|
|Privilege Pay Standard or Full Coverage||$35 Paid NSF fee per item presented3|
1Contact our Desert Financial Member Experience Center at 602-433-7000, or come by a branch to sign up or apply for these services.
2Subject to credit approval.
3Per item presented means each time an item is presented, including representment.
What is Overdraft Protection?
Overdraft Protection services apply to all types of transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from another account or line of credit you may have at Desert Financial; a fee or finance charge will be applied. Please note that overdraft lines of credit are subject to credit approval.
What is Privilege Pay?
Privilege Pay allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction.
Desert Financial may provide you a specific Privilege Pay limit depending on the type of account you have. You will receive a letter informing you that Privilege Pay has been activated on your account -- if you have opened a consumer account, you will receive this letter after 30 days, and if you have opened a business account, you will receive this letter after 60 days. You do not have Privilege Pay until you receive this notification.
Even if you have Overdraft Protection as described above, Privilege Pay is still available as secondary coverage if the other protection sources are exhausted.
Please be aware that the Privilege Pay amount is not included in your balance provided through online banking, mobile banking, telephone banking, or Desert Financial ATMs.
What types of transactions does Privilege Pay cover?
The types of transactions covered by Privilege Pay depend on the coverage selected. See the chart below for more information.
If you choose Full Coverage, all the transaction types listed in Standard Coverage are included, along with ATM withdrawals and every day debit card transactions. Desert Financial will not authorize overdrafts for ATM withdrawals and everyday debit card transactions on consumer accounts unless you give us your consent to pay these overdrafts by electing Full Coverage.* Business accounts automatically have Full Coverage.*
||Standard Coverage (No action required)||Full Coverage (Your consent required*)|
|ACH – Automatic Debits||X||X|
|Recurring Debit Card Payments||X||X|
|Online Bill Pay Items||X||X|
|On-us Checks cashed at our teller windows||X||X|
|Everyday Debit Card Purchases||X*|
How much does Privilege Pay cost?
A link to another account or line of credit may be less expensive than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts.
The Paid NSF Fee of $35 per transaction will be imposed for overdrafts created by checks, ACH, point- of-sale, ATM withdrawals or by other electronic means. If multiple items overdraw your account on the same day, each item will be assessed the appropriate fee. This is the same fee that Desert Financial charges for items returned to the payee due to insufficient funds.
For consumer accounts, there is a maximum of four (4) Paid NSF Fees or Unpaid NSF Fees ($140) per processing day that will be charged. Desert Financial will not charge a Paid NSF Fee if a consumer account is overdrawn by $5 or less. These exceptions do not apply to business accounts.
All fees and charges will be included as part of the Privilege Pay limit amount. Your account may become overdrawn in excess of the Privilege Pay limit amount as a result of the assessment of a fee. The total negative balance, including all fees and charges, is due and payable upon demand. All owners of an account will be jointly and severally liable for all such amounts as described in the Statements of Terms, Conditions and Disclosures.
What if I don't want Privilege Pay?
You can request to discontinue the Privilege Pay service in its entirety at any time by contacting our Desert Financial Member Experience Center at 602-433-7000. Without Privilege Pay, your insufficient funds items will be returned to the payee and/or declined at the point of purchase, unless you have Overdraft Protection available to cover the item(s). You will be charged the standard Unpaid NSF Fee of $35 for all returned items.
What if I want Desert Financial to pay my ATM withdrawals and everyday debit card overdrafts (full coverage)?
If you want Desert Financial to authorize and pay overdrafts caused by ATM withdrawals and everyday debit card transactions (Full Coverage), tell Desert Financial by using one of the following methods:
- Call our Desert Financial Member Experience Center at 602-433-7000
- Log into your account through Online Banking at DesertFinancial.com
- Visit one of our convenient Desert Financial branch locations
- Complete the Consent Form (which was previously provided to you and is available at any branch) and mail it to Desert Financial at Attn: Member Experience Center, P.O. Box 2945, Phoenix, AZ 85062-2945
NOTE: Business accounts automatically have access to Privilege Pay for ATM withdrawals and everyday debit card transactions (Full Coverage).
What else do I need to know?
- A link to another account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft, instead of multiple smaller overdrafts will result in fewer fees. Good account management is the best way to avoid overdrafts. Use our mobile banking, internet banking and telephone banking services to keep track of your balance. For financial education resources, please visit www.mymoney.gov.
- The $35 Paid NSF Fee that is charged if you overdraw your account is the same fee amount that is charged if a check or item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Paid NSF Fee or an Unpaid NSF Fee of $35. All fees and charges will be included as part of the Privilege Pay limit amount. Your account may become overdrawn more than the Privilege Pay limit amount because of a fee.
- If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Desert Financial will charge an Unpaid NSF Fee each time it returns the item because it exceeds the Available Balance in your account. Because we may charge an Unpaid NSF Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge an Unpaid NSF Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge a Paid NSF Fee.
- Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Paid NSF Fee from funds that you deposit or that are deposited into your account may call us at 602-433-7000 to discontinue Privilege Pay.
- For consumer accounts, there is a limit of four (4) Paid NSF Fees and Unpaid NSF Fees ($140) per day we will charge. We will not charge a Paid NSF Fee or an Unpaid NSF Fee if a consumer account’s available balance, not including overdraft coverage options, is overdrawn by $5 or less. These exceptions do not apply to business accounts.
- This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post credits before debits. The following transactions post in the order in which they are received: teller transactions and other force post items, recurring Non-PIN Point of Sale transactions, ATM transactions, Non-PIN Point of Sale transactions, PIN Point of Sale transactions, ACH Credits, ACH debits, External Transfers, Scheduled Disbursements, Automatic Loan Payments and ONUS Check Clearing. However, because of the many ways Desert Financial allows you to access your account, the posting order of individual items may differ from this general policy. Holds on funds, as described herein, and the order in which transactions are posted may impact the total amount of Paid NSF Fees or Unpaid NSF Fees assessed.
- Privilege Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Statement of Terms, Conditions and Disclosures. The total (negative) balance, including all fees and charges, is due and payable upon demand.
- Desert Financial may be obligated to pay some debit card transactions that are not authorized through the payment system but which Desert Financial is required to pay due to the payment system rules, and as a result, you may incur fees if such transactions overdraw your account. However, Desert Financial will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
- Giving Desert Financial your consent to pay everyday debit cards and ATM overdrafts may result in you incurring Paid NSF Fees for transactions that Desert Financial would otherwise be required to pay without assessing a Paid NSF Fee. However, this may allow Desert Financial to authorize transactions up to the amount of your Privilege Pay limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until your consent is otherwise withdrawn.
Understanding your Available Balance: Your account has two kinds of balances – the Ledger Balance and the Available Balance.
- Desert Financial authorizes and pays transactions using the Available Balance in your account.
- Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
- Your Available Balance is the amount available to you to use for purchases, withdrawals or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
- The balance used for authorizing checks, ACH items and recurring debit card transactions is your Available Balance plus the amount of the Privilege Pay limit and any available Overdraft Protection.
- The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Privilege Pay limit.
- The balance used for authorizing ATM and everyday debit card transactions on accounts with Full Coverage is your Available Balance plus any available Overdraft Protection and includes the Privilege Pay limit.
- Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement, it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that Desert Financial may place a hold on deposited funds in accordance with the Funds Availability Policy as stated in the most recent Statements of Terms, Conditions and Disclosures, which will reduce the amount in your Available Balance.
- Please be aware that the Privilege Pay limit amount is not included in your Available Balance provided through online banking, mobile banking or Desert Financial ATMs.
- Desert Financial will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two 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 are released and returned 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 Paid NSF Fee may be assessed.
- Except as described herein, Desert Financial will not pay items if the Available Balance in your account and other sources (including the Privilege Pay limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
Understanding Privilege Pay Limits
- A Privilege Pay limit up to $800 will be granted to eligible consumer checking accounts opened at least 30 days in good standing and eligible Business Checking Accounts opened at least 60 days in good standing.
- Privilege Pay may be suspended if you default on any loan or other obligation to Desert Financial, 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 (30) days of the initial overdraft date for a minimum of one business day, or for any reason within our discretion at any time without prior notice.
Overdraft Protection and Privilege Pay Summary
- Overdraft Protection services allow you to link other sources you have with Desert Financial to your checking account in order to prevent overdrafts and are less expensive options than an overdraft.
- Privilege Pay allows you to overdraw your account for a Paid NSF Fee of $35 per transaction in order to pay a transaction.
- Privilege Pay limits of up to $800 are available for eligible personal checking accounts opened at least 30 days in good standing.
- Privilege Pay limits of up to $800 are available for eligible business checking accounts opened at least 60 days in good standing.
- Standard Coverage covers checks, online bill payments, ACH transactions, and automatic/preauthorized debits that you establish (insurance premiums, utility bills, etc.).
- Full Coverage covers the Standard Coverage transactions above along with ATM withdrawals and everyday debit card transactions on your personal accounts with your prior consent. Business accounts automatically have Full Coverage.
- Both Overdraft Protection and Privilege Pay may enable you to avoid expensive merchant returned-check charges.
- Both Overdraft Protection and Privilege Pay may enable you to avoid having your ATM withdrawals or debit card transactions declined due to insufficient funds.
- You must deposit the full amount of the overdraft within thirty (30) days from the initial overdraft date, including any fees assessed to continue to receive Privilege Pay.
- Good account management is the best way to avoid overdrafts. Use Desert Financial mobile banking, online banking, and telephone banking services to help keep track of your balance.
- For additional money management tips, visit the Desert Financial website at DesertFinancial.com.
If you have questions about Overdraft Protection or Privilege Pay, please call our Desert Financial Member Experience Center at 602-433-7000.