In the News: New Federal Overdraft Rules Regarding ATM Withdrawals and
Debit Purchases.
A message from Riverfront Federal Credit Union
You may have noticed reports in the news recently regarding a change in
Federal law governing electronic transactions in financial services. The
rule change prohibits the charging of overdraft fees for one time ATM and
debit card transactions that cause an account to overdraw, unless the
account holder opts in to specifically allow their account to be overdrawn
by ATM and debit card transactions.
This rule change will not impact Riverfront Federal Credit Union members.
Riverfront approves ATM and debit card transactions as long as equivalent
funds are available in our member’s account. The overdraft limit we
establish for qualified members under our Overdraft Privilege Program has
never been used to authorize ATM withdrawals or debit purchases.
Of course, when considering approval of ATM and debit card transactions,
we will take into account balances available in a member’s other savings
or credit line accounts at RFCU. We call this Overdraft Protection. While
many other financial institutions charge a fee for this service, Overdraft
Protection is a free member benefit here at Riverfront.
We believe that the design of our Overdraft Privilege and Overdraft
Protection Programs enhance the value proposition that we offer to our
members in the form of convenient, affordable financial service, which
enables us to “Grow Stronger Together.”
