Frequently Asked Questions

Courtesy Pay is an overdraft service that pays items presented against your checking account when your account balance is not sufficient to do so. Instead of returning the transaction to the merchant for non-sufficient funds (NSF), we pay it and overdraw your account, saving you not only from the merchants NSF fee, but from service interruptions and the embarrassment and inconvenience associated with returned or declined items.

You have a privilege amount based on the deposits coming into your account. Your Courtesy Pay privilege amount is determined in the following way:

• All eligible accounts that have deposits totaling $1,500 or more per month will receive a $1,500 Courtesy Pay privilege.
• All eligible accounts that have deposits totaling between $1,000 and $1,499 per month will receive a $1,000 Courtesy Pay privilege.
• All other eligible accounts will receive a $500 Courtesy Pay privilege.
• Your Courtesy Pay privilege amount is evaluated monthly and is based on the previous calendar month's total deposit amount. If your deposit amount changes, your Courtesy Pay privilege amount may change without additional notice.

Overdraft(s) on your checking account may be honored, up to the Courtesy Pay limit (including fees) at Sound's discretion. A $29 service fee will be assessed for each check, automatic withdrawal (ACH), ATM transaction, debit card transaction or any other item that brings your account negative. You will have up to 30 days to bring your account current, either through a direct deposit, transfer of funds, deposit received through the mail, or at one of our branches.

There are two levels of Courtesy Pay coverage available. The Courtesy Pay fee is the same for both levels. For both options, you only pay for the service if you use it.

Basic Courtesy Pay. Covers overdraft transactions using:

• Paper checks
• Automatic withdrawals (ACH)

Complete Courtesy Pay. Covers overdraft transactions using:

• Paper checks
• Automatic withdrawals (ACH)
• ATM transactions
• Debit card transactions

There are no set-up or maintenance fees to have Courtesy Pay on an account. You only pay for it if you use it. When Courtesy Pay is activated, there is a $29 fee for each transaction that brings the account negative. There is no limit to the total fees that can be charged on an overdrawn account.

Courtesy Pay can be added to accounts in good standing 60 days after the account has been opened.

If you already have designated other overdraft protection sources (i.e. transfer from a savings, Visa, and/or a loan), they will be activated first, and in the order you have designated. If there is no overdraft protection, or after the other account types have been depleted, Courtesy Pay will be activated.

You, or any joint account owner, may choose to remove the Courtesy Pay service at any time. Let us know in one of the following ways:

• Call: 253.383.2016 or 800.562.8130
• Online: soundcu.com, log-in to your account through Online Banking
• In person: at any Sound branch location

If you choose to opt-out of this service, any transaction that may overdraw your account may be returned, and the standard NSF fee will be assessed. You may also be subject to additional fees from the merchant.

If money is owed on the account due to previous Courtesy Pay usage, you, or any joint owner, will still be responsible for repayment, including fees.

You must opt-in to Courtesy Pay to receive coverage.

Opting-in is easy, simply let us know! You can add Courtesy Pay to your account one of three ways:

• Call: 253.383.2016 or 800.562.8130
• Online: soundcu.com, log in to your account through online banking
• In person: at any Sound branch location

Courtesy Pay is extended 60 days after an account is opened, to all accounts that have elected coverage and are in good standing.

You only pay for this coverage when Courtesy Pay is accessed. Coverage will stay in place as long as you bring your account positive within 30 days of the initial overdraft. You, or any joint owner, may add or remove this service at any time.

After ten days we will mail a written notice advising you of any outstanding balance when items have been paid using Courtesy Pay.

You can also set up eAlerts through Online Banking for instant notification by email or text.

Repayment of the overdraft is required within 30 days. If you have additional overdraft items during those 30 days, a Courtesy Pay fee will be assessed for each transaction. Your account must be brought positive on or before the 30th day from the date of the initial overdraft. Any deposits received during the 30 days will be applied first to the overdrawn account.

If you reach your Courtesy Pay privilege limit, through transactions and fees, additional overdraft items will not be paid. Our standard non-sufficient funds (NSF) fee will be assessed and you may be subject to additional merchant fees.

Sound Credit Union does four very important things, which other institutions may not, to help you save money with the Courtesy Pay Program.

• ACH deposits (payroll, Social Security, etc.) and ACH withdrawals (automatic deductions, etc.) are posted, in each file, before clearing account transactions.
• We clear your transactions from "low to high" in each file that we receive, which means we clear the small dollar amount transactions before the large ones. This assures that more items clear your account before Courtesy Pay is accessed, and you experience fewer Courtesy Pay or Non-sufficient Funds (NSF) fees. (See example below.) Keep in mind that once a debit card is used, the merchant may place a hold on the funds for 1-5 days. If additional transactions are made that exceed the available checking balance, Courtesy Pay fees may be charged.
• Funds are transferred first from your savings account (or another designated account and/or line of credit) before accessing Courtesy Pay. The charge for a transfer is $5 instead of the normal Courtesy Pay fee.
• Upon request we'd be happy to refund one overdraft fee every calendar year.

Sound Credit Union Clearing Items in File Low to High	$ Amount	$ Account Balance
Beginning balance		1,000
Coffee	10	990
Lunch	12	978
Clothes	75	903
Utilities	99	804
Rent	1,100	(296)
Overdraft Fee	29	(325)

Total Overdrafts: 1 Total Overdraft Fees: $29

Other Institutions Clearing Items in File in Order of Arrival	$ Amount	$ Account Balance
Beginning balance		1,000
Rent	1,100	(100)
Overdraft Fee	29	(129)
Clothes	75	(204)
Overdraft Fee	29	(233)
Lunch	12	(245)
Overdraft Fee	29	(274)
Coffee	10	(284)
Overdraft Fee	29	(313)
Utilities	99	(412)
Overdraft Fee	29	(441)

Total Overdrafts: 5 Total Overdraft Fees: $145

Please note: PIN based debit transactions clear at the time of the transaction. BillPayer withdrawals can happen at any time on the scheduled "Send On" day.

If the account cannot be brought to a positive balance within the 30 day repayment period, the Courtesy Pay privilege will be suspended and/or removed and collection procedures will be initiated. Sound reserves the right to cancel, reduce, or temporarily suspend Courtesy Pay at any time.