Flat Rate Courtesy Pay
Courtesy Pay is a service that adds protection to a member's share draft account. It covers overdrafts, up to an approved limit, in exchange for a flat fee per overdraft transaction. That means instead of returning a check because of insufficient funds, you pay your member's check, saving them charges from the merchant, in addition to your insufficient funds fee. It saves the member the embarrassment that an inadvertent overdrawn check can cause. It also helps protect their credit rating.
Tiered Rate Courtesy Pay
Want to reward your good members? If so, the tiered approach to courtesy pay may be for you. Offering all the benefits of its flat-rate predecessor, Tiered Courtesy Pay is highly recommended by industry leaders over the traditional Flat Rate Courtesy Pay program. Under a tiered approach, most credit unions see a significant boost to their monthly income when compared to the income they would have received under the traditional flat rate approach. The best part is that a significant percentage of your members will actually pay lower fees. The graphs below contrast the traditional flat rate courtesy pay program and the Tiered Courtesy Pay program assuming data from the same credit union during the same period of time.