COURTESY PAY FEE is used when a member's Share Draft account is allowed to be drawn to a specified negative balance, if overdraft protection funds are not available thru share or line of credit loan advance.  Often an outside vendor provides software that is used to manage this service, altho it is not necessary for the program features to function.

You must first set up the program parameters in Program 47 Option A.  (See SYSTEM AUTOMATIC FEE SETUP below).  Each individual member who is elegible for this service must be flagged in Program #3.  (See MEMBER COURTESY PAY FEE INDICATOR below.)

Using this feature, a member's share draft account will first try normal overdraft transfers and/or loan advances set up in Program #5 Option E.

If sufficient funds are not available, the account is allowed to be drawn to a specified negative balance (see setup procedure below).  A Courtesy Pay Fee is charged to the member's account and the share draft is not returned by the credit union.

If a share draft draws the member's account to a negative balance that exceeds the specified negative balance, a normal Overdraft (NSF) fee is charged to the member's account, and the share draft is returned by the credit union.

SYSTEM AUTOMATIC FEE SETUP

Go to Program #47 Option A and enter the amount of the Courtesy Pay Fee and the Negative Balance limit.

NOTE:  Negative Balance Limit does NOT include the Courtesy Pay Fee.  In our example below a check would be covered up to a balance of $-500 and then a fee of $5.00 charged, drawing the balance to $-505.00.  You may want to reduce the amount in the Negative Limit field by the amount of your fee to prevent this situation ($495 in this example).

COURTESY PAY ON THE SHARE EXCEPTIONS LIST (PROGRAM #24 OPT B)

If a Courtesy Pay Fee is charged a Z will appear in the far right hand field.

If the account is set up for Courtesy Pay, but the negative balance exceeds the specified limit, a z appears in the far right field.

SETTING UP COURTESY PAY NOTICES

Go to Program #47 Option I Option P to set up test to appear on notices.

PRINTING COURTESY PAY NOTICES

When printing share draft notices in Program #24 Option J, include G to print Courtesy Pay notices.

MEMBER COURTESY PAY FEE INDICATOR

In Program #3 Special Indicator Flags use the Page Down key and the Down Arrow to change the Courtesy Pay (ODP) Flag to Y

ACH & ATM COURTESY PAY

Automatic overdraft transfer is not available in the ACH and ATM posting routines at this time.  To post a courtesy pay fee in either instance, use Program #2 Share Withdrawals/Fees and choose Transaction code #430 YF  Courtesy Pay Fee.  

YTD COURTESY PAY TOTAL

When each automatic or manual Courtesy Pay Fee is posted to a member's account a line is added below the fee in the member's history to indicate the YTD total of all Courtesy Pay Fees posted to this member's account.  This will appear on the member's statement exactly as you see it in history.  

NEW DRAFT EXCEPTION REPORT

To view overdraft exceptions with greater detail than Program #24, Option B, use the following report:

Program #33

Daily Reports

Draft Exception Report

example:

EXPORT REPORTS TO OUTSIDE VENDER

By going into Program #24 Option B and viewing the exceptions list all the way to the end, you cause 2 files to be created.........return.fil and bounce.no

return.fil lists all share drafts that were not covered by overdraft protections or courtesy pay, and should be returned.  

bounce.no lists all share drafts that were covered by Courtesy Pay.

Typically, both of these files are exported to your 3rd party software on a daily basis and used to generate reports and letters.