Learn how each option works, what it may cost, and how to choose the best safety net for your checking account.

When your checking account does not have enough money to cover a transaction, how it is handled depends on the type of transaction and the protection options you have in place. At Pathways, Overdraft Protection and Courtesy Pay are different services, and each works a little differently.

Overdraft Protection: Transfers from Savings or Loan

Overdraft Protection is a lower-cost option that uses your own available funds to help cover a transaction. If you have a Pathways savings account or eligible loan linked to your checking account, funds may be automatically transferred to cover the overdraft.

• Cost: $3 per transfer
• Funding source: Your linked Pathways savings account or eligible loan
• Best for: Members who want to use available funds from another account to help avoid higher fees

Courtesy Pay: A Backup Safety Net

Courtesy Pay is different from Overdraft Protection. Instead of transferring money from another account, Courtesy Pay may allow your checking account to go negative up to a specific limit determined by Pathways.

Courtesy Pay can help cover eligible transactions when your balance is low, including everyday debit card purchases if you have opted in.

• Cost: $19 per paid overdraft
• Funding source: Pathways may cover the transaction at its discretion
• Important: Courtesy Pay is not guaranteed, and eligibility requirements and limits apply

What Is an NSF Fee?

NSF stands for Non-Sufficient Funds. Some transactions, such as online purchases, ACH payments, debit transactions, or checks, may still post to your account even when there is not enough money available.

If you are not opted into Courtesy Pay and one of these transactions posts without available funds, a Non-Sufficient Funds/Courtesy Pay fee may apply.

• Cost: $33 per occurrence when applicable
• Applies to: ACH, debit, check, or certain online transactions that post without available funds
• Good to know: Some transactions may still go through even if you are not enrolled in Courtesy Pay

Which Option Is Best?

If you have money available in another Pathways account, Overdraft Protection through a transfer from savings or an eligible loan may be the lower-cost option.

Courtesy Pay can provide an additional safety net when funds are not available to transfer. Many members choose to use both options for added flexibility.

Learn More About Courtesy Pay 

Courtesy Pay is a discretionary service. Eligibility requirements, limits, and restrictions apply. Fees may apply when overdrafts are paid. Overdraft transfers require available funds in a linked eligible Pathways account.