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Overdraft Protection

Overdraft protection provides you with the peace of mind when things don’t happen according to plan.  If you forget to make the deposit before your loan payment is withdrawn, or you accidentally paid your bill twice, Blackhawk has several ways you can protect your account from overdraft.

How overdraft protection works

Let’s use a real example. You have $50 in your checking account.

Without Overdraft protection:

  • You use your debit card or write a check at a store for $55.
  • Without overdraft protection, the check would be sent back to the store as “insufficient funds.”
  • The credit union would charge you a fee for processing the check and the merchant would charge you a fee for writing a bad check.

 With Overdraft Protection:

  • We see if you have money in your savings first and transfer the funds for a $2 transfer fee
  • If not, we cover the $55 from your reserve Kwik Cash loan for a $2 transfer fee
  • If there is no loan set up, you pay a $30 overdraft fee
  • The merchant is paid without knowing the checking did not have sufficient funds

If you used your debit card to make the purchase you wouldn’t have a return check fee by the merchant because your card would tell the store clerk that it was declined. With overdraft protection, it would send an approval message without the merchant knowing the account was negative.

How you set up your overdraft is up to you.

Transfer from Savings

If there is not enough money in your checking account to clear the checks you’ve written, we can first check your savings account.

  • We’ll transfer the money from savings automatically
  • A $2 fee may be charged each time a transfer is made
  • This is a great option but it requires you to keep extra money in your savings for emergencies and it’s not free.
Overdraft Protection Line of Credit

Overdraft line of credit is a loan that is linked to your checking.

  • We’ll transfer the money from the line of credit automatically
  • A $2 fee may be charged each time a transfer is made
  • You pay interest on the loan until you pay it in full
  • Members would need to complete a loan application and meet credit standards to qualify for this option.
Overdraft Privilege™

Overdraft Privilege™ permits you to withdraw more than the account balance, for a short period (up to a maximum of 30 days) to cover unexpected emergencies. In essence, we advance you the money by allowing your account balance to go temporarily negative.

  • We’ll automatically pay the purchase or withdrawal
  • A $30 fee is charged each time you use it.
  • This program does have some coverage limits based upon the type of withdrawal you are making.
What is covered Automatically?

Transactions that are automatically covered are:

  • checks you wrote
  • purchases made with your debit card that happen periodically like online subscriptions
  • pre-authorized withdrawals from your checking where you gave your checking account information to set up, like the health club or utility payments.

Get complete coverage with Overdraft Privilege™

Other transactions can be covered by signing an Opt-In agreement. The agreement allows the credit union to pay the other times you may need money but are running a little short.

  • ATM transactions
  • debit card purchases at the merchant
How do I Opt-in?
  • Call and we will process your request over the phone
  • Stop by any branch and Opt-in
  • Complete our Opt-in form


*Overdraft Privilege is available for eligible checking accountholders. Overdraft Privilege will cover checks, drafts, electronic funds transfer, debit card transactions, ATM withdrawals, and other withdrawal requests for a fee of $30 each time you use it. The overdraft must be paid within 30 days and the checking account must have a positive balance for a minimum of 24 hours. We may refuse to pay an overdraft at any time, even though your account is in good standing and we may have paid overdrafts in the past. You will be notified of any returned items by mail.