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Courtesy Coverage

What You Need To Know About Overdrafts and Overdraft Fees

It is the policy of the Vanderbilt Credit Union to return unpaid transactions drawn on an account with insufficient funds.

However, we offer Courtesy Coverage Overdraft Protection in the amount of $600.00 for your account subject to certain terms and conditions.

An overdraft occurs when you do not have enough in your account to cover a transaction, but we pay it anyway.  We can cover your overdraft in two different ways:

1. We have standard overdraft practices that come with your account.
2. We also offer overdraft sweep protection such as a link to your savings account.


The Courtesy Coverage is not a line of credit. Cheaper alternatives to ODP include a line of credit or a linked Savings Account. To prevent nonsufficient funds (NSF) and Overdraft fees, we recommend you maintain all account activity in a check register and regularly reconcile your account to the balance reported by our credit union.

We will charge your account for each overdraft no matter how the overdraft happens. Covered transactions include: checks, drafts, in-person withdrawals, ACH or debit card transactions, pre-authorized automatic debits, withdrawals or transfers made by phone, internet or ATM, transfers initiated through Online banking, as well as payment of an item under the ODP Program.

Covered transactions for ODP do not include ATM card and one-time debit card transactions, unless you consent on a separate disclosure to have the bank authorize and pay overdrafts for these types of transactions. If you choose not to consent to this service, it will have no adverse effect on your ODP for checks, automatic bill payments, and other transactions made using your checking account number.

You may opt in or out at any time of the bank paying your ATM & one-time Debit Card transactions by: contacting a member service representative or by completing the Reg E Opt-In/Opt-Out Form below.

What are the standard overdraft practices that come with my account?

We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments


We do not authorize and pay overdrafts for the following types of transactions unless you ask us to do so:

  • ATM transactions
  • Everyday debit card transactions

We will provide up to a $600 overdraft limit to all consumer transaction accounts; which means we authorize and pay any type of transaction up to that limit including ATM and debit card transactions.  If we do not authorize and pay an overdraft, your transaction will be declined. Misuse of the account or accounts overdrawn over 65 days, are circumstances under which your account may be closed at the credit union’s discretion.

What fees will I be charged if the Vanderbilt Credit Union pays my overdraft?

  • We charge you a fee of $30 per item each time we pay an overdraft.
  • There is no limit on the total fees we can charge you for overdrawing your account.
  • There is no interest charged.

The Courtesy Coverage is not a line of credit. Cheaper alternatives to ODP include a line of credit or a linked Savings Account. To prevent nonsufficient funds (NSF) and Overdraft fees, we recommend you maintain all account activity in a check register and regularly reconcile your account to the balance reported by our credit union. We will charge your account for each overdraft no matter how the overdraft happens.

Covered transactions include: checks, drafts, in-person withdrawals, ACH or debit card transactions, pre-authorized automatic debits, withdrawals or transfers made by phone, internet or ATM, transfers initiated through Online banking,, as well as payment of an item under the ODP Program.

What if I want the Vanderbilt Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want the Vanderbilt Credit Union to authorize and pay overdrafts on ATM and everyday debit card transactions, you need to “opt in”.

To do this you can:

    1. Submit your form on-line by clicking the below link.  Complete the form and hit submit.
    2. Email us at creditunion@vanderbilt.edu to inform us you want to “opt‐in”.
    3. Call us and give your verbal permission to “opt in”.

The Courtesy Coverage is not a line of credit. Cheaper alternatives to ODP include a line of credit or a linked Savings Account. To prevent nonsufficient funds (NSF) and Overdraft fees, we recommend you maintain all account activity in a check register and regularly reconcile your account to the balance reported by our credit union. We will charge your account for each overdraft no matter how the overdraft happens.

Covered transactions include: checks, drafts, in-person withdrawals, ACH or debit card transactions, pre-authorized automatic debits, withdrawals or transfers made by phone, internet or ATM, transfers initiated through Online banking,, as well as payment of an item under the ODP Program.

Courtesy Coverage

Terms and conditions: You signify your desire to have Courtesy Coverage Overdraft Protection (ODP) for your account and agree to the conditions set forth herein and on the Overdraft Protection Policy. This program is discretionary which means we do not guarantee that we will always authorize and pay any type of transaction.