We provide debit cards to account holders who we believe can manage their debit card use within the limits of available funds, including any amounts available under Overdraft Privilege for account holders who have opted in to payment of overdrafts for every day debit card and ATM transactions. We have established this policy to address debit card usage that results in an unacceptable level of transactions in excess of the amounts that are available to pay debit card transactions.

Allentown Federal Credit Union maintains a debit card available balance for each account. This balance, if available, will allow those debit card account holders who have remaining available limit, including, if applicable, an overdraft privilege limit, to complete a transaction via debit card or ATM. These transactions, if within the available this limit, are considered reasonable. We understand that there may be rare occasions when a Member may have a transaction approved that, when presented, may exceed this limit and therefore have established a maximum number of 2 to accommodate these inadvertent occurrences.

Any and all debit card and/or ATM transactions in excess of the established maximum number of occurrences of transactions that exceed the debit card available balance are considered to be unacceptable use of the debit card.

Account holders will be sent notifications upon each occurrence of unacceptable use of a debit card. Upon each notification, the Member will be given the opportunity to have additional funds made available through their debit card and, if unacceptable use continues without resolution, the card(s) will be revoked. Cards may be reactivated at our discretion.

The following notifications will be sent upon the designated occurrences:

First occurrence of unacceptable use

A standard overdraft notice and a card warning notice will be sent to card holder, warning them that, “You have exceeded your debit card available balance. Any card transaction in excess of available balance is considered unacceptable. Debit cards on your account will be revoked if you have more than 2 occurrences of exceeding your debit card available balance. Please contact us to discuss the options available to you to increase your debit card available balance, at (610) 820-8440.

Second occurrence of unacceptable use

On the second occurrence, a standard overdraft notice and a card warning notice will be sent to card holder, warning them that, “You have exceeded your debit card available balance. Any card transaction in excess of available balance is considered unacceptable. Since a card on your account has previously exceeded your available balance, it is our policy to revoke your card on any future occurrence. Please contact us to discuss the options available to you to increase your debit card available balance, at (610) 820-8440.

A call will be made to each Member advising them of their options to avoid loss of their card(s) if no contact is made.

Third occurrence of unacceptable use

On the third occurrence, a Member will be sent a letter notifying them that their card has been revoked and is not available for future use. The card will be revoked and a call will be made to each Member advising them of their options to have their debit card reinstated.

Adopted 8/19/10