Life can happen — no matter how careful you are.

We’ve got your back for those unexpected times when you don’t have enough funds in your checking account. Whether it’s a bill, a surprise expense, or an everyday purchase with your debit card, we have options to help you!

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 deposit account for a fee or line of credit you may have at Service One Credit Union, for a fee and finance charge. Please note that overdraft lines of credit are subject to credit approval.

What Is Overdraft Privilege?

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction.

Service One Credit Union may provide you a specific Overdraft Privilege limit depending on the type of account you have. You will receive a letter approximately 30 days after account opening for consumer accounts (90 days for student accounts), or after 60 days for business accounts, notifying you whether Overdraft Privilege is available on your account. You do not have Overdraft Privilege until you receive the letter.

Please be aware that the Overdraft Privilege amount is not included in your balance provided through online banking, telephone banking, or Service One Credit Union ATMs.

How Much Does Overdraft Privilege Cost?

There is no fee for having Overdraft Privilege unless you use it. The Overdraft Fee of $28.95 will be imposed for overdrafts created by checks, ACH, point-of-sale, ATM withdrawals, in-person 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 Service One Credit Union charges for items returned to the payee due to insufficient funds.

All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege 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. Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Deposit Account and Disclosure Agreement.

What if I want Service One to pay my ATM and everyday debit card overdrafts (Extended Coverage)?

If you want us to authorize and pay overdrafts caused by ATM and everyday debit card transactions (Extended Coverage), tell us by using one of the methods below:

What Are My Overdraft Coverage Options?    



Overdraft Protection Linked to Another Deposit Account at Service One Credit Union1

  $10.00 fee per transfer

Overdraft Protection Line of Credit2

Subject to $10.00 fee per transfer + finance charge

Overdraft Privilege2

$28.95 fee per item

       1Contact us at 270-796-8500 or, or stop by a branch to sign up or apply for these services.

        2Subject to credit approval.

What Types of Transactions Does Overdraft Privilege Cover?

The types of transactions covered by Overdraft Privilege depend on the coverage selected. See the chart below for more information.


Standard Coverage

(No action required)

Extended Coverage

(Your consent required)* 

Checks X X
ACH -Automatic Debits X X
Recurring Debit Card Payments X X
Online Bill Pay Items X X
Interest Banking Transfers X X
Telephone Banking X X
At the Teller Window X X
ATM Transactions     X*
Everyday Debit Card Transactions     X*


If you choose Extended Coverage, all the transaction types listed in Standard Coverage are included, along with ATM withdrawals and everyday debit card transactions. Service One Credit Union will not authorize overdrafts for everyday debit card and ATM transactions on consumer accounts unless you give us your consent to pay these overdrafts by electing Extended Coverage. Business accounts automatically have Extended Coverage.

Even if you have overdraft protection, such as a transfer from another account, Overdraft Privilege is still available as secondary coverage if the other protection sources are exhausted.

What If I Don't Want Overdraft Privilege?

You can request to discontinue the Overdraft Privilege service at any time by contacting us at 270-796-8500 or at Without Overdraft Privilege, insufficient funds items will be returned to the payee and/or declined at the point of purchase. You will be charged $28.95 for all returned items.

What You Need to Know About Overdraft Privilege Opt-In

Federal Regulations require members who are eligible for overdraft protection, Service One Overdraft Privilege program, to opt-in to have their ATM and everyday debit card transactions covered. Below are answers to frequently asked questions.

What Else Do I Need to Know?

We generally post items in the following order:

 1) credits, 2) ATM and debit card transactions (as presented), 3) ACH debits (low to high by dollar amount), 4) checks (by low to high dollar amount); however, exceptions will occur. Holds on funds(described below) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Fees assessed.

A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts.

 Although under payment system rules, Service One Credit Union may be obligated to pay some unauthorized debit card transactions, Service One will not authorize debit card or ATM transactions unless there are sufficient available funds (including overdraft coverage) to cover the transactions and the amount of any fee(s).

 Giving us your consent on your consumer account to pay everyday debit card and ATM overdrafts may result in you incurring overdraft fees for transactions that we would otherwise be required to pay without assessing an overdraft fee. However, this may allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.

 Service One authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds, and does not include any deposited funds on hold. Service One Credit Union may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/ or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction.

 Service One 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 will be added to the available balance in your account. 

 We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account including any Overdraft Privilege limit. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s) if your debit card is ever suspended.

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

 Overdraft Privilege 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-two (32) days for a minimum of one business day.

Overdraft Protection and Overdraft Privilege Summary


 Overdraft Protection services allow you to link other sources you have with Service One Credit Union to your checking account in order to prevent overdrafts and are less expensive options than an overdraft.

 Overdraft Privilege allows you to overdraw your account for a fee of $28.95 in order to pay a transaction.

 Overdraft Privilege limits of up to $500 are available for eligible Personal Checking accounts opened at least 30 days/90 days (student) in good standing.

 Overdraft Privilege limits of up to $500 are available for eligible Business Checking accounts opened at least 60 days in good standing.

 Standard Overdraft Privilege covers checks, online bill payments, ACH transactions, or automatic/pre-authorized debits that you establish (payment protection premiums, utility bills, etc.)

 Extended Overdraft Privilege covers ATM withdrawals and everyday debit card transactions on your personal accounts with your prior consent, in addition to those transactions covered by Standard Overdraft Privilege.

 Business accounts automatically have Extended Coverage.

 Both Overdraft Protection and Overdraft Privilege may enable you to avoid expensive merchant returned-check charges.

 Both Overdraft Protection and Overdraft Privilege may enable you to avoid having your ATM or debit card transactions declined due to insufficient funds.

 You must deposit the full amount of the overdraft (within 32 days), including any fees assessed, and maintain a positive balance for at least one business day to continue to receive Overdraft Privilege.

Good account management is the best way to avoid overdrafts. Use our mobile banking, internet banking, and telephone banking services to help keep track of your balance. 

Want to talk to us about your Overdraft protection options?

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