Custom Account Processing

We want to help you truly leverage your account and can often help you avoid unnecessary expenses along the way.

The following information will help you understand the overdraft process... However, it doesn't take into consideration everyone's account. Rather, it assumes the most basic and general starting point.

Credit unions and banks, obviously, rely on a computer to process transactions. This makes the processing simple, predictable and systematic. What most places won't tell you is that we can customize this for each person and it doesn't take too much effort.

Some people will prefer that we move money from a savings account before using a line-of-credit or Courtesy Pay. Others don't want us to get near their savings at all. Whatever your preference, we can try to get it set up as you need it.

Account Defaults (How we automatically process transactions)

Hopefully this helps you understand. Our computer defaults to a specific pattern.

  • Of course, we try to process your transactions to your checking account. If you have enough here, you are good to go.
  • If you don't have enough money, our systems are set up to try and keep you from either overdrafting, or from the credit union having to return items (which usually results in fees). Our automatic overdrafting looks like this:
    1. First we try to overdraft to your overdraft line-of-credit (if available). We pull only as much as you need to pay your items.
    2. If your line-of-credit is exhausted (or, of course, you don't have one), we try to overdraft your savings (S1) account. We are, by law, only allowed to do this a few times a month, which is why you see us pull increments of $50 (it helps reduce the number of overdrafts we use).
    3. Past that, our computer looks to your secondary saving (S2) accounts. We'll try all of these before moving on.
    4. Lastly, we will try your money market (S6) accounts. In the same way, we will try to keep you from going negative by moving funds over to cover your transactions.
    5. Lastly, we will use Courtesy Pay (if available) up to your approved limit. On the plus side, your transactions are covered, but this will result in a fee.
    6. If Arapahoe Credit Union is unable to cover your transaction at this point, we are forced to return the transaction to the merchant. A merchant is likely to try and process this again in a couple of days, but that is out of the control of the credit union.

    So, Your Options (and Considerations)

    For the most part, our process works fine for everyone. It has the advantage of staving off overdrafts and fees until the last possible moment. Still, it isn't for everyone and we would welcome your personal preferences. Maybe you don't want to ever overdraft a specific savings account. Maybe you want to use your line-of-credit absolutely last before Courtesy Pay rather than before your savings account. We can accommodate most of these requests.

    The easiest way to set something up is to contact us and well walk you through the options.

    However, if you would like us to look at various options, or if you have quick requests, you can use this form. We will contact you to verify all is as you need it. We will use internal contact information for all follow up contact.


Courtesy Pay: Covering payments by the credit union is a discretionary courtesy and not a right of the member or an obligation of the credit union. This privilege for consumer share draft accounts will be limited to a maximum amount of $2,000 (or less, depending on approved limit) balance in the negative. Transaction types that are eligible for courtesy pay include and are limited to: ACH transactions, debit card transactions, and drafts (checks). You must bring your account balance to a positive balance within every 30-day period for a minimum of 24 hours to remain eligible. The credit union, at its sole discretion, can cancel this protection, and cease paying overdrafts at any time without prior notice of reason or cause. Approval is required before being allowed this service. Additionally, this is an "at-will" program. You may opt-out of coverage at any time by contacting the credit union and providing written instructions if necessary. Of note, we offer several levels and various limits to this service (e.g. use for all transactions or just ACH/ check options). To discuss this service or help us customize it for your needs, please contact us.

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