Using Courtesy Pay

Also known as Overdraft Privilege, Overdraft Courtesy, and Bounce Protection, Courtesy Pay lets you automatically post share draft items and ACH debit items to a share draft account up to a credit union-defined negative available balance limit. You can use Courtesy Pay in combination with current overdraft protection options from a share or loan and/or in combination with the uncollected funds share draft and/or ACH posting options. Plus, you can use the Courtesy Pay share draft negative available balance limit to post Bill Pay, ATM, and/or Debit Card share draft transactions.

You activate Courtesy Pay by defining a negative available balance limit on all share draft products, specific share draft products, and/or at the member share draft level. Courtesy Pay lets you temporarily exclude new members from Courtesy Pay during the new account period as defined by your credit union.

You can automatically charge off and close a negative balance Courtesy Pay share draft account at a credit union-defined number of days. Courtesy Pay also lets you flag a negative Courtesy Pay share draft account to automatically create a loan in the next back-office cycle using credit union-defined default values. The Courtesy Pay loan brings the share draft account balance to zero and Portico disables Courtesy Pay on the account.

Courtesy Pay lets you easily identify if a negative balance share draft account is negative due to Courtesy Pay processing and create non-return notices and charge fees for items posted using Courtesy Pay. You can also track and identify Courtesy Pay negative balance share draft accounts using Collections.

Debit card, ATM, ACH, share draft clearings and over-the-counter withdrawals are settled using the following order:

1. Share Account Available Balance
2. Overdraft Protection
3. Grace Amount Processing
4. Uncollected Funds
5. Courtesy Pay

Fee Processing:

Portico's fee processing ensures that members will not be assessed fees on a previously-authorized POS transaction. The Charge OD POS Fee Override check box on the Credit Union Profile – Self Service tab allows you to override this fee restriction, and continue assessing overdraft fees for prior-authorized POS transaction. The following table describes if a fee will be assessed and the type of fee. Portico will use this table and the following conditions to determine when a fee will be assessed.

• If a fee amount is defined in the Portico Help Desk for the fee type, the fee can be assessed.
• Overdraft protection fees and courtesy pay fees are not charged unless the member has opted into the service offering.
• If the transaction was authorized on a positive account balance, but settled with a negative balance, a fee will not be charged.
• If the POS transaction is presented through ACH processing, where authorization could not be considered, a fee will not be charged. Portico will process the transaction using normal posting logic: 1) available balance, 2) overdraft protection, and 3) Courtesy Pay. If the ACH item still cannot be posted, Portico will exception the item and display it on the ACH Exceptions window for your credit union to review, approve, and assess a fee and/or generate a notice.
• If the authorized balance is UNKNOWN, a fee will not be charged.
• If the transaction was authorized with stand-in limits, a fee will not be charged.
• Any fees that are assessed are credited to the fee general ledger account in the ATM branch defined on the EFT Network Cross Reference table in the Portico Help Desk.

Funds Authorized With	Funds Used At Settlement	Fee charged if Charge OD POS Fee Override check box is selected ü	Fee charged if Charge OD POS Fee Override check box is NOT selected ☐
Funds Available	Positive Balance Available	No Fee	No Fee
Funds Available	Overdraft Transfer Required	Overdraft Transfer Fee	No Fee
Funds Available	Uncollected Funds	Uncollected Funds Fee	No Fee
Funds Available	Courtesy Pay Funds	Courtesy Pay Fee	No Fee
Funds Available	Negative	Negative Fee	No Fee
Funds Available	Partial Overdraft /Remainder Courtesy Pay	Overdraft Transfer Fee	No Fee
Grace Amount	Grace Amount	No Fee	No Fee
Grace Amount	Overdraft Transfer Required	No Fee	No Fee
Grace Amount	Uncollected Funds	No Fee	No Fee
Grace Amount	Courtesy Pay Funds	No Fee	No Fee
Grace Amount	Negative	No Fee	No Fee
Grace Amount	Partial Overdraft /Remainder Courtesy Pay	No Fee	No Fee
Overdraft Transfer Funds	Positive Balance Available	No Fee	No Fee
Overdraft Transfer Funds	Overdraft Transfer Required	Overdraft Transfer Fee	Overdraft Transfer Fee
Overdraft Transfer Funds	Uncollected Funds	Overdraft Transfer Fee	Overdraft Transfer Fee
Overdraft Transfer Funds	Courtesy Pay Funds	Overdraft Transfer Fee	Overdraft Transfer Fee
Overdraft Transfer Funds	Negative	Negative Fee	Negative Fee
Overdraft Transfer Funds	Partial Overdraft /Remainder Courtesy Pay	Overdraft Transfer Fee	Overdraft Transfer Fee
Uncollected Funds	Positive Balance Available	No Fee	No Fee
Uncollected Funds	Overdraft Transfer Required	Overdraft Transfer Fee	Overdraft Transfer Fee
Uncollected Funds	Uncollected Funds	Uncollected Funds Fee	Uncollected Funds Fee
Uncollected Funds	Courtesy Pay Funds	Courtesy Pay Fee	Courtesy Pay Fee
Uncollected Funds	Negative	Negative Fee	Negative Fee
Uncollected Funds	Partial Overdraft /Remainder Courtesy Pay	Uncollected Funds Fee	Uncollected Funds Fee
Courtesy Pay Funds	Positive Balance Available	No Fee	No Fee
Courtesy Pay Funds	Overdraft Transfer Required	Overdraft Transfer Fee	Overdraft Transfer Fee
Courtesy Pay Funds	Uncollected Funds	Uncollected Funds Fee	Uncollected Funds Fee
Courtesy Pay Funds	Courtesy Pay Funds	Courtesy Pay Fee	Courtesy Pay Fee
Courtesy Pay Funds	Negative	Negative Fee	Negative Fee
Courtesy Pay Funds	Partial Overdraft /Remainder Courtesy Pay	Courtesy Pay Fee	Courtesy Pay Fee
Negative	Positive Balance Available	No Fee	No Fee
Negative	Overdraft Transfer Required	Overdraft Transfer Fee	Overdraft Transfer Fee
Negative	Uncollected Funds	Uncollected Funds Fee	Uncollected Funds Fee
Negative	Courtesy Pay Funds	Courtesy Pay Fee	Courtesy Pay Fee
Negative	Negative	Negative Fee	Negative Fee
Negative	Partial Overdraft/Remainder Courtesy Pay	Overdraft Transfer Fee	Overdraft Transfer Fee