Overdraft Privilege


Honest mistakes happen from time to time. That’s why we offer Overdraft Privilege (ODP) – to save you the embarrassment of an NSF check, and the aggravation of dealing with additional fees and charge for returned checks.

How does ODP work?

ODP is activated after other methods of overdraft protection – such as transferring funds from your savings account – have been exhausted. You’ll pay for ODP only when you use it. While our standard NSF fee applies to checks covered by ODP, we will honor or pay the overdraft if you are enrolled in the ODP program, and as long as the check amount and fee does not exceed the ODP limit and balance, if any. If you should exhaust the ODP limit, checks will be returned as NSF.

Overdraft Privilege is not a contractual agreement. Honoring or paying checks or transactions using ODP is at the sole discretion of the Credit Union and may be withdrawn at any time. Call or email us for more details. If you email us, please do not include sensitive information (Account Numbers, Social Security numbers, etc.) in the email.

Frequently Asked Questions

Q: If I don’t have Overdraft Privilege, how can I get it?

A: New checking accounts are reviewed after 90 days and are enrolled if eligible at that time. Those accounts receive notification of enrollment, along with a disclosure, at the time of eligibility.

Existing checking account holders who did not qualify at 90 days after opening, may call the credit union and request Overdraft Privilege at any time.

Q: I thought you would just take funds from the Primary Shares and cover the debit for a $2 fee.  What is this about a $25 fee?

A: Dort Federal has always provided Overdraft PROTECTION on your checking account. Our first attempt to process your transaction is always to check the availability of Overdraft Protection. This means that IF you have adequate funds available in your SAVINGS account, we will automatically transfer the funds from savings to checking to cover your debit for a $2 fee*.

If you do not have enough available funds in your savings account, Overdraft PRIVILEGE may cover the debit (up to a total of $500) and you will be charged a $25 Overdraft Privilege fee.

*Regulation D dictates that electronic transfers from Savings are limited to six per month. Overdraft Protection is an automated electronic transfer that is subject to Regulation D rules.

Q: Will this allow an authorization on my debit card for $500 more than what I have available?

A: Yes. Total available is dependent upon other transactions made using ODP.

Q: It says that you will only pay out at Dort’s discretion.  Why would you NOT pay it for me?

A: If an authorization is given for a debit card transaction, we are required to post the debit to your checking account. This means that if you swipe your debit card and it is approved, it will be paid.

For share drafts or ACH transactions, Dort Federal may authorize Overdraft Privilege payment up to a $500 cumulative limit. The $500 cumulative limit also includes any fees incurred for overdrafts. Example, you have a $0 balance in your checking account, you write a check for $475, you have now taken your account negative $500. This includes the $475 check plus the $25 Overdraft Privilege fee.

Q: I would like to keep the Overdraft Privilege for checks and electronic debits, but I do not want it for ATM and debit card purchases.

A: If you do not want Overdraft Privilege on ATM and one-time debit card purchases, opt-out of Overdraft Privilege coverage. At this time, under the current regulations, opting-out will continue your share draft (paper checks) and ACH Overdraft Privilege.

Q: What will happen if I opt-out? Will I be charged a fee if I overdraft my account?

A: At this time you will not be charged a fee, but you will not be able to use your debit card until your account is brought positive, or pending deposits are available.