Understanding NSF Fees and Courtesy Pay Fees
January 8, 2025
If you’ve ever tried to spend more money than what’s available in your account balance, then you’ve probably come across an NSF or Courtesy Pay fee. Many banks and credit unions established these fees to protect themselves and their member’s transactions. Understanding NSF fees and Courtesy Pay fees is helpful for managing your money better and avoiding these fees altogether.
What is an NSF fee?
NSF is short for non-sufficient funds, and this fee is charged when a transaction is declined due to not having enough funds in your account. According to U.S. News & World Report, NSF fees typically range from $10 to $50. Over time, these fees can be especially frustrating for people who are struggling financially. Starting in 2025, TVFCU will no longer charge NSF fees. This change is made to eliminate confusion associated with the fee, help members who may be struggling financially, and reduce financial repercussions for those trying to get back on track.
What is a Courtesy Pay fee?
Courtesy Pay is an optional service that allows your account to go negative so a transaction can be completed. TVFCU charges a $9 Courtesy Pay fee to accommodate the risk of allowing the transaction to go through. At most institutions, including TVFCU, when you begin your checking account you are automatically opted-in for Courtesy Pay Service on checks and ACH items, and you may choose to opt-in for debit card transactions.
What are the key differences?
1. NSF declines the transaction, while Courtesy Pay allows it to go through
2. Courtesy pay is an optional service, while NSF is not
How can I avoid these fees?
To avoid courtesy pay, choose to not opt-in for that service. To avoid an NSF fee, there are a few different things you could do:
1. Bank with TVFCU to eliminate NSF fees completely! Visit the related links section below to contact us and learn more.
2. Sign up for overdraft protection. Overdraft protection is a service that allows transactions to go through by designating a backup bank account (checking, savings, or line of credit) to cover the remaining balance of a transaction on the main bank account.
3. Keep an eye on your account balances. Checking even just once at the beginning of each day can help to avoid overspending. The TVFCU YOUR$ Mobile app makes it easy to check account balances, transaction history, receive alerts, and so much more. Check the related links section for instructions on how to download the YOUR$ app.
Related Links:
Contact us here: https://www.tvfcu.com/about-us/contact-us.html
Compare TVFCU checking accounts: https://www.tvfcu.com/personal/personal-checking/compare-accounts.html
U.S. News article: https://www.usnews.com/banking/articles/how-overdraft-fees-and-nsf-fees-compare#:~:text=This%20list%20includes%20Chase%2C%20Bank,range%20from%20%2410%20to%20%2450.
YOUR$ app download instructions: https://www.tvfcu.com/services-tools/eservices/mobile-banking.html