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Life happens! Ball State Federal Credit Union understands that unexpected overdrafts occur from time to time — Overdraft Coverage can help.

Overdraft Coverage Options 

The choice is yours. Consider these ways to cover overdrafts:

Service Cost
Overdraft Protection Link to your Savings Account at Ball State Federal Credit Union1 No fee per transfer
Overdraft Privilege $29 Overdraft Fee per item

Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from your savings account you have at Ball State Federal Credit Union.  

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction. Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.

Transactions Covered with Overdraft Protection Standard Coverage (No action required) Extended Coverage (Your consent required)
Checks X X
ACH – Automatic Debits X X
Recurring Debit Card Payments X X
Online Bill Pay Items X X
Telephone Banking X X
Teller Window Transactions X X
ATM Transactions   X2
Everyday Debit Card Transactions   X2

If you would like to select Extended Coverage for future transactions, contact us one of the following ways:

  • Call us at (765) 741-2728
  • Complete the Consent Form and mail it to us at 2900 N. Oakwood Avenue, Muncie, IN 47304
  • Visit any branch
  • Email us at 

You can discontinue the Overdraft Privilege in its entirety by contacting us at (765) 741-2728 or sending us an email at

What Else You Should Know

A link to your savings account is a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, A.R.T., and e-Alerts to keep track of your balance.

The $29 Overdraft Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Item Fee of $29. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee. 

We generally post items in the following order: 1) credits, 2) ATM and debit card transactions (Real Time), 3) ACH debits (low to high by dollar amount), 4) Bill Pay (low to high by dollar amount), 5) checks (low to high by dollar amount); however, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Item Fees assessed. 

Although under payment system rules, Ball State Federal Credit Union may be obligated to pay some unauthorized debit card transactions, Ball State Federal Credit Union will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).

Giving us your consent to pay every day debit card and ATM overdrafts on your consumer account may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.

Ball State Federal Credit Union authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds and does not include any deposited funds on hold. Ball State Federal Credit Union may place a hold on deposited funds in accordance with our Funds Availability Policy. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction.

Please be aware that the Overdraft Privilege amount is not included in your balance provided through online banking, mobile banking, A.R.T., e-Alerts, or Ball State Federal Credit Union’s ATMs.

Ball State Federal Credit Union will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.

Except as described in this letter, Ball State Federal Credit Union will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s). 

We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Overdraft Privilege limit. If you use your debit card for recurring payments, e.g., utilities, and your debit card is ever suspended, these transactions will be declined or returned to the payee(s). You will need to make other arrangements to make these payments to the payee(s).

Overdraft Privilege limits of up to $779 are available for eligible Personal Checking accounts opened at least 30 days in good standing and up to $1,029 for eligible Business Checking accounts opened at least 30 days in good standing.

Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 31 days for a minimum of one business day. 

Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Terms and Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.


If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at (765) 741-2728 or visit a branch.

1Call us at (765) 741-2728, email us at, or come by a branch to sign up for this service.

2If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.


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