Overdraft Protection

Sometimes miscalculations happen. An overdraft occurs when you do not have enough money in your account to cover a transaction that has come into your share draft account for payment. We can cover standard overdrafts through our overdraft protection plans, such as a link to a savings account, courtesy pay or through our overdraft loan protection.


What are standard overdraft practices that come with my account?

  • Courtesy Pay: offered with checking accounts (except Restart Checking) at no cost to you unless you use it.
  • Overdraft Protection Transfer: Transfers from Savings or Money Market any available funds ($5 per transfer fee) (needs to be requested on your account)

We do authorize and pay overdrafts for the following types of transactions: 

  • Checks and other transactions made using your checking account #
  • Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below): 

  • ATM transactions
  • Everyday debit card transactions

What fees will I be charged if New York University Federal Credit Union pays my overdraft?

Under our standard overdraft practices:

  • We will charge you a fee of $25.00 each time we pay an overdraft. 
  • There is no limit on the total fees we can charge you for overdrawing your account.

How Courtesy Pay Helps You:

  • Convenience: When you are short on funds, Courtesy Pay covers your transaction on the spot.
  • Peace of Mind: Courtesy Pay can prove vital in urgent circumstances 
  • Privacy: Courtesy Pay safeguards you from the potential embarrassment of bouncing a check with a merchant or having your debit card declined when taking a friend to dinner. Neither the merchant nor other patrons will be aware of the status of your account.  
  • Courtesy Pay may cover items that exceed the balance of your account up to $300 (including fees).
  • If you have overdraft protection on your checking from your savings or money market accounts, all available funds will be transferred first before courtesy pay.
  • There is no fee to have Courtesy Pay. You are only charged a fee if you overdraw your account and Courtesy Pay is used. Each time Courtesy Pay is used, a fee of $25 per transaction is assessed.

What if I want New York University Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call 212-995-3392, complete the form here. You are required to opt in to receive this coverage – you may do so by completing a paper form and emailing, mailing, faxing at 212-995-4582 or bringing it into a branch. If you have previously completed an overdraft protection on debit card form, you will be automatically opted in or out based on this form.


Opt Out

Every checking account (except restart) comes with Courtesy Pay unless you opt out. If you wish to opt out from courtesy pay service, you may do so by completing this opt-out form and emailing, mailing, faxing at 212-995-4582 or bringing it into a branch. or send a secure message through online banking with your request.


If you wish to opt in/out of Overdraft Protection Transfers, please send a message through online banking.


Requirements for Courtesy Pay:

Whether or not a transaction is covered by Courtesy Pay is discretionary and NYU FCU reserves the right not to pay. The following is a list of account characteristics that NYU Credit Union requires in order to pay an item under Courtesy Pay:

  • Your account is in good standing
  • You are making regular payments via direct deposits or monthly deposits
  • You have not had excessive overdrafts or overdrawn accounts
  • Your account has been open for at least 30 days
  • You don’t have delinquent loan with NYUFCU. 

What are additional ways to secure your account from overdrafts?

Apply for an overdraft line of credit. Please contact Member Services to request Overdraft Line of Credit. Rate is 12.5%. Credit and income restrictions apply.