Courtesy Pay Overview and Procedures

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Questions and Answers

What is the title given to the person who has complete control over a General Membership account?

Secondary Member

Joint Account Holder

Primary Member (correct)

Authorized Signatory

Which of the following should NOT be asked for member verification?

Driver's license number

Beneficiary on the account

Date of birth (correct)

Direct deposit amount

What type of identification may a non-citizen have that is primarily used for tax reporting?

Individual Tax Identification Number (correct)

National Identification Number

Social Security Number

Permanent Resident Card

What begins the number of an Individual Tax Identification Number (ITIN)?

Nine Signup and view all the answers

Which question would be appropriate to ask regarding a member's direct deposit?

Where does your direct deposit come from? Signup and view all the answers

When is documentation of a physical address required from a member?

When the Primary ID does not have a physical address Signup and view all the answers

What is the primary purpose of a Power of Attorney (POA) in account management?

To identify the legal Power of Attorney on the account. Signup and view all the answers

What is the first step in processing an address change for a member?

Choose the Member requesting the change from the drop-down. Signup and view all the answers

Which statement is accurate regarding the addition of beneficiaries to an account?

Only the primary member can add a beneficiary to the account. Signup and view all the answers

What must be provided to request a name change on an account?

Documentation such as a marriage certificate or divorce decree Signup and view all the answers

Which ID requirement is necessary to add a joint member to an account?

Identification must be scanned in color and submitted. Signup and view all the answers

What is the fee for transferring funds from a Primary Savings account for overdraft protection?

$5 Signup and view all the answers

Which account is typically used first for overdraft protection transfers?

Overdraft Line of Credit Signup and view all the answers

What must be verified in person for member verification?

Valid State ID Signup and view all the answers

Which of the following is NOT a valid form of ID for member verification?

Utility Bill Signup and view all the answers

How many verification questions must be asked for over-the-phone member verification?

3 Signup and view all the answers

What information can be asked for member verification if there is no joint owner on the account?

Joint member on your account? Signup and view all the answers

Which member verification method requires at least 3 questions including a code word?

Over-the-phone verification Signup and view all the answers

Which type of account cannot be used for overdraft protection?

Secondary Savings Signup and view all the answers

What is required for a youth member without a State ID during in-person verification?

Birth Certificate Signup and view all the answers

When a checking account is created, what is automatically set up for overdraft protection?

Both Primary Savings and Overdraft Line of Credit Signup and view all the answers

Study Notes

Courtesy Pay

Courtesy Pay allows paying items against a member's checking account, even if it overdraws the account.
The program complies with member account agreements and regulations.
Account holders can overdraw up to 1,000,witha1,000, with a 1,000,witha33 fee per transaction, as long as their accounts are in "good standing" and they haven't abused the service in the past 12 months.
Business checking accounts automatically enroll in Courtesy Pay and don't need signed documents. Businesses can opt out.
Opt-in/out procedures for Courtesy Pay are available.

Courtesy Pay Opt-In/Out Procedure

Fee: $33 per transaction
Maximum Limit: $1,000
Minimum Age: 18
Order Items are Paid: First-In, First-Out
Eligibility Requirements: Must qualify using ChexSystems, and basic checking accounts can't use Courtesy Pay.

Qualifications for Courtesy Pay

A member must be 18 or older, a qualified business, and the account must have been maintained in "good standing" (i.e., sufficient deposits, no more than 30 consecutive days of overdraft, and no legal issues regarding the account).

Limitations of Courtesy Pay

The Courtesy Pay feature is only available on Alliance, Standard, and Business checking accounts.
The maximum exposure to Courtesy Pay is $1,000 per primary account holder, identified using social security number or EIN/TIN. Only one account per person can be enrolled.
Required Documentation: For Alliance and Standard Checking, members must sign the Courtesy Pay opt-in/out form. The form is required regardless of whether they opt-in or out of the Courtesy Pay Program

Overdraft Protection

Overdraft protection (ODP) automatically transfers funds from a Primary Savings and/or Overdraft Line of Credit to prevent overdrafts.
There is a transfer fee of $5 if funds are transferred from Primary Savings. The transfer is free if from the Overdraft Line of Credit.
Transfers are setup automatically when an account is created, or an Overdraft Line of Credit is established..
Typically, the Overdraft Line of Credit is used first, then the Primary Savings.
Secondary savings accounts cannot be used for overdraft protection.

Member Verification

Verification is required for account transactions, account opening, changes to accounts, and loan applications.
Verification methods include checking State IDs, Driver's Licenses, and Passports.
Verification also includes birth certificates (for youth members without state IDs).
Phone verification may include 3 questions related to the account, last four SSN digits, mother's maiden name, or the identifying the account joint owner/beneficiary.
In-person or over-the-phone verifications are needed for account transactions and related activities.

Non-Citizen Identification

U.S. Citizens and non-citizens may have similar identification
Non-citizens may use Individual Tax Identification Numbers (ITINs) instead of social security numbers. ITINs typically start with 9 and the fourth digit commonly begins 7 or 8.
If the primary ID does not have a physical address, documentation of a physical address must be provided.

Account Names and Descriptions:

Primary: The account owner has complete control.
Joint: Joint owners share control, but cannot close the account, access IRA accounts, or add/remove names without the primary account holder. They must open their own accounts to achieve those options.
Alternate: Used as an alternate mailing address for the primary account holder.

Standard Account Names and Descriptions

Mailing Address: Used when a member is traveling and/or mail has been forwarded, or is otherwise not recieving mail at their listed address
Beneficiary: Identifies the beneficiaries of shares or trust accounts in the event of the primary account holder's death. Percentages must total 100%
Power of Attorney (POA): Used to identify a legal power of attorney on the account. The power of attorney dictates control of the account. Documents associated with the power of attorney must be manually added to the account upon receiving the documents.

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Description

This quiz provides an overview of the Courtesy Pay program, including eligibility requirements, fees, and procedures for opting in or out. Understand how overdrawn accounts can be managed while complying with regulations and member agreements. Perfect for individuals and businesses looking to navigate their checking account options.