Courtesy Pay

Shares and Certificates Shares/Certificates Courtesy Pay

This document provides technical details and configuration options for the Courtesy Pay feature within the FLEX system. Courtesy Pay offers overdraft protection, allowing financial institutions to cover transactions that exceed a member’s available balance, up to a specified limit.

1. Courtesy Pay Options

The FLEX system offers two primary options for configuring Courtesy Pay:

1.1. Option 1: Global Courtesy Pay

  • Description: This is a basic, no-cost option configurable globally.
  • Configuration Factors: Only considers share type and the process (e.g., share draft, ACH, cards).
  • Setup Location: Configured within the “Overdraft Fee Maintenance” for each relevant process.
  • Impact: All members with the configured share type and process will automatically receive the specified Courtesy Pay amount, unless manually overridden in Share Maintenance. No other configuration options are available for member eligibility under this option.

1.2. Option 2: Courtesy Pay/Overdraft Privilege Module

  • Description: An advanced module offering additional parameters and granular control. This module requires a separate purchase.
  • Configuration: Configured by share type. Once activated, a “Courtesy Pay” tab becomes available within each Share Type’s configuration.

2. Share Type Configuration (Option 2)

When using the Courtesy Pay/Overdraft Privilege module, the following parameters can be configured at the share type level:

2.1. Control Parameters

  • Courtesy Pay Amount:
    • Defines the default Courtesy Pay amount allowed for this specific share type.
    • Individual account settings in Share Maintenance will override this global share type setting.
  • Minimum Age of Member: Specifies the minimum age a member must be to qualify for Courtesy Pay.
  • Days Open Ranges (First & Second):
    • Allows for two distinct ranges to determine eligibility and Courtesy Pay amounts based on how long an account has been open.
    • First # of Days Open From: Start day for the first range.
    • First # of Days Open To: End day for the first range. If left blank, the system will use the amount from the main “Courtesy Pay Amount” field.
    • Courtesy Pay Amount for First Day Range: The amount awarded if the account’s open duration falls within the first range.
    • Second # of Days Open From: Start day for the second range.
    • Second # of Days Open To: End day for the second range. Setting to ‘0’ (zero) means no ending day for the second range.
    • Courtesy Pay Amount for Second Day Range: The amount awarded if the account’s open duration falls within the second range.
  • Maximum Delinquent Loan Days: Maximum number of days a loan associated with the account can be delinquent while still maintaining Courtesy Pay eligibility.
  • Maximum Overdrawn Days: Maximum consecutive days an account can remain negative (overdrawn) and still be eligible for Courtesy Pay.
  • Negative Allowed Previous 12 Months: Maximum number of times an account is permitted to go negative in the past 12 months for Courtesy Pay eligibility. (Each instance of consecutive negative days, followed by a return to zero/positive, counts as one time).
  • NSF’s Allowed Previous 6 Months: Maximum number of Non-Sufficient Funds (NSF) occurrences allowed in the past 6 months for Courtesy Pay eligibility.
  • Allow Non-Individual: If checked, non-individual accounts (e.g., business accounts) are eligible for Courtesy Pay.
  • Account Balance Must Be Positive for Courtesy Pay: If checked, the account balance must be positive for Courtesy Pay eligibility.
  • Consider Zero as Negative Balance for Courtesy Pay: (Implied from the screenshot, typically a checkbox to treat a zero balance as negative for eligibility checks).

2.2. Direct Deposit Parameters

  • Check Direct Deposit:
    • Y (Yes): Direct deposit is checked based on additional parameters (Tellers PR, AC, and Transaction Code 12).
    • N (No): Direct deposit is not required for Courtesy Pay eligibility.
    • H (Higher Amount): A higher Courtesy Pay amount (defined in “Direct Deposit Maximum”) is granted if direct deposit criteria are met.
  • Direct Deposit Percent: If Courtesy Pay is awarded as a percentage of the monthly direct deposit, enter the percentage here. This overrides the default Courtesy Pay amount.
  • Number of Days After Deposit: Number of days after a direct deposit is received for it to be considered eligible for Courtesy Pay.
  • Direct Deposit Maximum: Used when “Check Direct Deposit” is set to H. This amount will be used instead of the default Courtesy Pay amount. (Note: This is not a strict maximum limit for eligibility).
  • Minimum Direct Deposit Required: Minimum dollar amount a monthly direct deposit must be to qualify for Courtesy Pay.
  • # of Direct Deposits Required: Minimum number of direct deposits required during the month for Courtesy Pay eligibility.
  • Credit Score: Lowest eligible credit score required for Courtesy Pay consideration.
  • Accumulate Direct Deposits: If checked, all direct deposits received throughout the month are accumulated for eligibility determination.
  • Require Direct Deposits: If checked, direct deposit is mandatory for Courtesy Pay eligibility.
  • Draft Group Only: If checked, only direct deposits into draft accounts are considered for Courtesy Pay direct deposit requirements.

2.3. New Accounts Parameters

  • Minimum Deposits: For new accounts, the minimum dollar amount of non-direct deposits required within a specified number of days for Courtesy Pay eligibility.
  • Within Number of Days: The number of days to consider when calculating the “Minimum Deposits” amount for new accounts.
  • Courtesy Pay Default: Defines the default Courtesy Pay flag setting when opening a new account of this type.

2.4. Tiered Courtesy Pay

  • Courtesy Amounts 1-8 / Deposit Over 1-8:
    • These fields allow for awarding different Courtesy Pay amounts based on total monthly deposits.
    • Example: “Courtesy Amount 1” might be $100 if “Deposit Over 1” is more than $500. “Courtesy Amount 2” might be $500 if “Deposit Over 2” is more than $1000, and so on.

3. Share Maintenance

The Courtesy Pay program runs daily via Job Scheduler, automatically updating member accounts based on current qualifications. This means a member’s Courtesy Pay eligibility and amount can change daily.

The Courtesy Pay amount awarded to a member can be viewed and maintained in “Share Maintenance.”

3.1. Share Maintenance Fields

  • Courtesy Pay: Indicates if the suffix (account) is eligible for Courtesy Pay.
    • Y (Yes): Suffix is eligible.
    • N (No): Suffix is NOT eligible. Even if auto-enroll is used and other criteria are met, Courtesy Pay will not be allowed.
    • Override: If auto-enroll is active, this setting overrides the amount the system would normally assign. The Courtesy Pay amount must be manually set in the “Courtesy Pay Amount” field.
    • Suspended: Courtesy Pay has been suspended. This typically occurs if the account has been overdrawn for more than 30 days, often managed by the (additional, purchased) Shares Collection module.
  • Courtesy Pay Amount:
    • Indicates the Courtesy Pay amount allowed for this specific suffix.
    • If auto-enroll is used, it will replace this amount with the default unless the “Courtesy Pay” flag is set to Override.
    • If $.01 is entered, no Courtesy Pay will be allowed unless auto-enroll is used and the “Courtesy Pay” flag is not set to Override.
  • Courtesy Pay Enrollment Date: Displays the date the account was enrolled into Courtesy Pay.

4. Overdraft Fee Maintenance (Example Parameters)

The following parameters are examples of what can be configured in Overdraft Fee Maintenance, particularly for Global Courtesy Pay (Option 1):

  • Take Acct Negative: Fee for taking account negative (e.g., $30.00).
  • Take OD Share Negative: Fee for taking Overdraft Share negative (e.g., $30.00).
  • Returned (NSF): Fee for returned (NSF) items (e.g., $30.00).
  • Charge Courtesy Pay Fee: Indicates whether a fee will be charged if Courtesy Pay is used (Y/N).
  • Courtesy Pay Fee: The amount of the Courtesy Pay fee (e.g., $30.00).

5. Overdrafting Control Setup

  • Share Xfr Minimum: (Not detailed, but implies minimum for share transfers for overdraft).
  • Loan Xfr Minimum: (Not detailed, but implies minimum for loan transfers for overdraft).
  • Share Xfr Increment: (Not detailed, but implies increment for share transfers for overdraft).
  • Allow Partial Share Xfr: (Y/N) Allows partial share transfers for overdraft.
  • Loan Xfr Increment: (Not detailed, but implies increment for loan transfers for overdraft).
  • Allow Partial Loan Xfr: (Y/N) Allows partial loan transfers for overdraft.
  • Always Except for Reg D: (Implies a rule related to Regulation D).
  • Overdraft If Delq: (Y/N) Allows overdraft if the account is delinquent.
  • Max Days Delq Allowed: Maximum days delinquent allowed for overdraft (e.g., 10 days).