Privacy & Disclosures
This statement discloses your ability to withdraw funds from transaction accounts, subject to Regulation CC. It identifies categories of deposited or cashed checks for which we will delay availability (hold) for a specified period, to assure they will clear.
In general, we make funds from your deposits available to you on the same day we receive your deposit. At that time, you can withdraw the funds in cash, and we will use the funds to pay debits. After we have made funds available to you, and you have withdrawn the funds, you are still responsible for deposits that are returned to us unpaid and for any other problems involving your deposit.
For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before closing on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after closing or on a day we are not open, we will consider the deposit was made on the next business day we are open. Transactions may not be processed in the order in which they occurred.
1. Longer Delays May Apply
In some cases, we will not make all funds you deposit by check available to you immediately. Depending on the type of check you deposit, funds may not be available until the fifth business day after the day of your deposit. The first $225.00 of your deposits, however, may be available on the first business day.
If we are not going to make all funds from your deposit available on the first business day, we will notify you at the time you make your deposit, including when funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will notify you by the day after we receive your deposit. If you will need the funds from a deposit right away, ask us when the funds will be available.
In addition, funds you deposit may be delayed under the following circumstances:
- We believe a check you deposit will not be paid.
- You deposit checks totaling more than $5,525.00 on any one day.
- You deposit a check that has been returned unpaid.
- You have overdrawn your account repeatedly.
- There is an emergency, such as failure of computer or communications equipment.
- We will notify you if we delay your ability to withdraw funds for any of these reasons.
- In addition to the exceptions listed above, from time to time, we may delay the availability of funds on a case-by-case basis. You will be notified if availability is delayed.
In addition to the exceptions listed above, from time to time, we may delay the availability of funds on a case-by-case basis. You will be notified if availability is delayed.
2. Special Rules for New Accounts
The following special rules will apply during the first 30 days your account is open. Funds from electronic deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,525.00 of a day’s total deposits of cashiers, certified, teller’s, and federal, state and local government checks will be available on the day of your deposit if the deposit meets certain conditions. For example, the checks must be made payable to you. The excess over $5,525.00 will be available on the ninth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,525.00 will not be available until the second business day after the day of your deposit. Funds from all other check deposits may be delayed for longer periods at our discretion but will generally be available by the ninth business day after your deposit.
3. Holds on Other Funds
If we cash a check for you that is drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.
If we accept a check for deposit that is drawn on another financial institution, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.
4. Deposits at Automated Teller Machines (ATMs)
Funds from any deposits (cash or checks) made at ATMs we do not own or operate may not be available until the fifth business day after the day of your deposit. Funds from any deposits (cash or checks) made at ATMs we own or operate may not be available until the second business day after the day of your deposit. Contact us to verify when funds will be available, or if you need funds released.
5. Deposits at Shared Branches
Funds from any deposit made at shared branches may not be available right away. Contact us to verify when funds will be available, or if you need funds released.
6. Foreign checks
Checks drawn on financial institutions located outside the U.S. (foreign checks) cannot be processed the same as checks drawn on U.S. financial institutions. Foreign checks are exempt from the policies outlined in this disclosure. Generally, the availability of funds for deposits of foreign checks will be delayed for the time it takes us to collect the funds from the financial institution upon which it is drawn.
An overdraft occurs when you do not have available funds in your checking account to cover a transaction, but we pay it anyway.
Overdraft payments. If, on any day, there is not available funds in your account to pay the full amount of a check, draft, transaction, or other item, plus any applicable fee, that is posted to your account, we may return the item or pay it. Our determination of an insufficient account balance may be made at any time between presentment or posting of a transaction. We do not have to notify you if your account does not have available funds in order to pay an item. Your account may be subject to a charge for each item regardless of whether we pay or return the item and you may be charged for the same item if it is presented for payment multiple times.
If we offer Standard Overdraft Privilege, this service allows us to authorize payment for the following types of transactions regardless of whether your share or deposit account has sufficient funds: (1) share drafts/checks and other transactions made using your checking account, except as otherwise described below; (2) automatic bill payments; (3) and ACH transactions. For ATM and everyday debit card transactions, you must consent to extended coverage. Without your consent, we may not authorize ATM or everyday debit card transaction that may result in insufficient funds in your account. Services and fees for these transactions are stated in the consent form and Service Pricing Fee Schedule.
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. If we pay these items or impose a fee that results in insufficient funds in your account, you agree to pay the insufficient amount, including the fee(s) assessed by us.
Account balances. Your checking account has two kinds of balances: the “ledger” balance (also called the “current” balance) and the “available” balance. Both may be verified through some electronic services, but the best way to verify these balances is by calling during regular business hours or stopping by one of our branch locations. It is important to understand how the two balances work so that you know how much money is in your account at any given time.
Your ledger/current balance is the total amount of money that is in your account at any given time. It reflects the full amount of all deposits to your account, even though some portion of a deposit may not be available to you or may be pending receipt of funds from a third party, less payment transactions that have posted to your account. It does not, however, include preauthorized funds to pay merchants that are pending settlement (i.e., have not yet been paid or posted to your account), nor checks or other payments that have not yet posted. Thus, while the term “ledger/current” may sound as though the amount you see is an up-to-date display of what is in your account that you can spend, that is not always the case. For example, if you have a $50.00 ledger balance, but you just wrote a check for $40.00, your ledger balance is $50.00 but it does not reflect the pending $40.00 check transaction. At that point, you actually have $50.00 in your ledger balance, but you have already spent $40.00.
Your available balance is the amount of money in your account that is immediately available for use. It is the ledger balance less holds placed on deposits and less debit card payment pre-authorizations that have not yet posted to your account. For example, assume you have a ledger balance of $50.00 and an available balance of $50.00. If you were to swipe your debit card at a merchant to buy groceries for $20.00, that merchant could ask us to authorize the payment. In that case, we are obligated to pay the merchant, even if your balances are negative at the time the debit card payment is presented to us by the merchant, so we will reduce your available balance by the amount of the pre-authorization, which is $20.00. Your ledger balance would still be $5.000 because this transaction has not yet posted, but your available balance would be $30.00 because you have an authorization to pay the merchant $20.00. When the merchant submits its bill for payment (which could be several days later), your ledger balance will be reduced by the amount of the posted transaction (in this example, $20.00) and both your ledger and available balance will be $30.00.
Overdrawn account. Ledger balance less any holds at the time transactions are posted (not when they are authorized) is used to determine when your account is overdrawn. The following example illustrates how this works. Assume your ledger balance and available balance are both $50.00, and you use your debit card at a merchant for $20.00. The merchant requests a preauthorization and we reduce your available balance to $30.00. Your ledger balance is still $50.00. Before the $20.00 merchant transaction is sent to us for payment, a check that you wrote for $40.00 is presented for payment. Because you have only $30.00 available (you have an authorization to pay the merchant $20.00), your account will be overdrawn by $10.00, even though your ledger balance is $50.00. In this case, as your ledger balance is $50.00, we may pay the $40.00 check, and you will not be charged an Overdraft Fee for the $40.00 transaction. Your ledger balance is now $10.00. When the merchant requests payment for the $20.00 transaction, your ledger and available balance will be insufficient to cover the $20.00 transaction. This will result in an Overdraft Fee for the $20.00 transaction (only if opted-in to ATM and everyday debit card transactions), even though your available balance was sufficient at the time the pre-authorization for the transaction was approved.
It is very important to understand that you may still overdraw your account even though the available balance and ledger balance appear to show there are sufficient funds to cover a transaction that you want to make. Your available balance may not reflect your outstanding checks, automatic bill payments that you have authorized, or other outstanding transactions that have not been paid from your account. In the example above, the outstanding check will not be reflected in your available balance until it is presented to us and paid from your account. Your available balance also may not reflect recent deposits to your account that are subject to holds as described in our Funds Availability disclosure.
In addition, your available balance may not reflect all pending debit card or ATM card transactions. For example, if a merchant obtains a preauthorization but does not submit an everyday debit card transaction for payment within three (3) business days after preauthorization, we may increase your available balance by the amount of the preauthorization. This means that your available balance will not reflect the pending transaction until the transaction has been received by us and paid from or posted to your account. This commonly happens with certain types of preauthorized transactions, such as car rentals and international purchases, depending on the merchant. Even though we may increase your available balance when a merchant does not submit the transaction for payment in a timely manner, the obligation to the merchant still applies. The time period for the preauthorization may be different for certain types of merchants such as gas stations that may have a preauthorization time period of several hours, or for transactions or accounts that involve suspicious or unusual activity.
- Posting order. We generally post items in the following order however exceptions may occur:
- Credits and deposits
- ATM and debit card transactions in the order received
- Checks (low to high by dollar amount)
We may receive multiple credit and debit transactions on your account in many different forms throughout the day. Due to the many ways we allow you to access your account, the posting order of individual items may differ from these practices. Holds on funds and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Fees assessed. These practices may change, and we reserve the right to pay items in any order we choose as permitted by law.
Some items are received by us individually and others are received in batches. Items that we receive individually, electronically or in person, may be posted to your account immediately upon receipt, in the order received. Items received by mail may not processed on weekends or holidays and may be processed in random order. Items that we often receive individually include ATM withdrawals and in-person teller transactions. Individual debits that we receive electronically are generally posted 24 hours a day, 7 days a week. Items that we receive by batch are aggregated and processed throughout the day, first by processing all batched credits; then by processing all batched debits, generally from low to high dollar value. Examples of items that we often receive in batches include checks drawn on your account presented by other financial institutions and ACH transactions. We may receive debits for purchase transactions made with your debit card or ATM card individually or in batches, depending on the merchant. You may contact us to confirm whether a debit or deposit has been posted, to determine availability of deposited funds, and to determine your available balance. It is important to understand how we post transactions to your account so that you know how much money you have and how much is available to you at any given time.
Checks, drafts, and other payment items may not be processed in the order that you make them or in the order that we receive them. We may, at our discretion, pay a check, draft, or item, and execute other transactions on your account in any order we choose.
Credits. We reserve the right to refuse any item for deposit into your account. Your available balance may not reflect the most recent deposits to your account. For details on the availability of funds that are deposited, see our Funds Availability disclosure. ACH credits are posted on the settlement date.
Debits. Various types of debit transactions can be presented for payment by merchants, and we are not necessarily in control of when transactions are received. Common types include:
- ACH Debits. Multiple Automated Clearing House (ACH) transactions are sent to us by the Federal Reserve Bank in a batched data file. An example of an ACH debit include an automatic bill payment that you have authorized. ACH debits may be arranged by you with a payee (such as your utility company or insurance company), online via bill pay service, or in branch. ACH debits are posted on the settlement date.
- Withdrawals via ATM and In-Person, or Transfers via Online, Mobile, and Phone. When you make a withdrawal using these methods, it is processed individually and deducted from your account immediately.
- Checks. Checks may be processed through a clearing unit, such as a Federal Reserve Bank, which sends us multiple checks in a clearing file or batch. Checks you write on your account that are cashed at any of our branches are processed individually and may be deducted from your account immediately.
- PIN-Based Purchase Transactions. A Personal Identification Number (PIN)-based purchase transaction occurs when your debit card is used to make a purchase and the merchant processes the transaction through a PIN debit network. A purchase transaction may be a PIN-based transaction even if the merchant does not require you to enter your PIN. A PIN-based purchase transaction is similar to an ATM withdrawal because money is typically deducted from your account immediately at the time of the transaction.
- Signature-Based Purchase Transactions. A signature-based purchase transaction occurs when your debit card is used to make a purchase and the merchant processes the transaction through a signature-based network, such as Visa or Mastercard. The merchant may require you to sign for the purchase instead of entering a PIN. In some situations, the merchant may not require a signature, such as for an internet purchase or for a purchase below a certain dollar amount. Signature-based purchase transactions may be processed individually or batched, depending on the merchant.
Preauthorizations. A merchant may seek preauthorization to guarantee that it will be paid for a purchase transaction made with a debit card. When this happens, we generally reduce your available balance by the amount of the preauthorization. We reduce your available balance as we receive and accept the preauthorization request, but your ledger balance is not affected until the transaction is processed by the merchant and submitted to us for payment. This can happen instantly or sometimes days after the transaction, depending on the merchant. These payment requests generally are received in real time throughout the day and are immediately posted to your account.
The amount of a preauthorization may differ from the actual payment because the final transaction amount may not be known to the merchant when the merchant submits a preauthorization request. For example, a restaurant may request a preauthorization on your account for the amount of your bill, but when the transaction posts it may be for an amount that includes a tip that you authorized. A difference in amount may also happen when you use your debit card at gas stations, hotels, car rental companies, and other establishments. We cannot control how much a merchant asks us to preauthorize, or how long a merchant takes to submit a transaction for payment.
Returned items. If a check or ACH transaction is presented for payment and your ledger balance less deposit holds is not sufficient to cover it, then we may, at our discretion, return the item rather than pay it. If we return an item, we will assess a returned item fee. If an item is presented for payment again, after it is rejected, we may reject it again and charge another returned item fee. You may be charged more than one returned item fee if multiple transactions are submitted for payment and returned, or the same transaction is submitted multiple times.
Overdraft Coverage program. If you have Overdraft Coverage on your checking account, we may honor debit transactions when your ledger balance less any deposit holds is insufficient by:
- Overdraft Protection - transfer funds from another account or a Kwik Cash line of credit for a fee or finance charge
- Overdraft Privilege - overdraw your account up to the disclosed limit for a fee in order to pay a transaction
Funds transferred from your savings account or money market accounts are subject to the transaction limitations described in the Truth in Savings Disclosure. We will charge you an Overdraft Protection fee only if the funds transferred are sufficient to cover the overdraft. Funds transferred from your Kwik Cash line of credit will be subject to finance charges. The fee for Overdraft Protection transfers is listed on the Service Pricing Fee Schedule. In accordance with federal regulations, savings accounts are limited to six (6) preauthorized, automatic, telephone, or audio response transfers (including Overdraft Protection transfers) to another account for which you are the accountholder. Transfers beyond the six may incur a fee or may not be processed.
Fees and repayment. Accounts will be charged the standard $30.00 fee for overdrafts created by checks, Automated Clearing House (ACH), Point of Sale, ATM withdrawals, debit card purchases, in-person withdrawals, or by other electronic means, including a $30.00 fee for returned items. An overdrawn balance must be repaid within 32 days. We may not pay items under your overdraft privilege if: you do not maintain your account in good standing by bringing your account to a positive balance within every 32 day period for a minimum of 24 hours; if you default on any loan or other obligation to DCCU; or if your account is subject to any legal or administrative order or levy.
Minimizing fees. The best way to know the amount of your available balance and to avoid paying Overdraft or Returned Fees is to record and track all of your transactions, including preauthorization transactions, outstanding checks, ACH debits, bill payments, online and mobile banking transfers, phone transactions, deposit holds, levies, garnishments and other items that reduce your available balance. When in doubt as to the amount of a preauthorization, ask the merchant how long it generally takes for the transaction to be submitted for payment.
Revised: April 2020