ZTB Puts Member Financial Well-Being Over Short-Term Return With ODP Enhancements
December 22, 2021
Chicago –
On November 1, 2021, ZTB increased their overdraft protection (ODP) negative grace balance from
-$20 to -$100, saving members over $3.7M annually. This change is yet another step toward
fulfilling their Purpose of Empowering People to Discover Financial Freedom.
Members enrolled in the Credit Union’s Courtesy Payment Service program can overdraw
available funds in their account. With the new ODP extension, members will not be charged an
overdraft fee unless their balance falls below -$100. Most importantly, it prevents transactions
from being declined. “Those who occasionally take advantage of the Courtesy Payment Service
program will rarely see fees; and those who more heavily rely on the program will have more wiggle
room and won't have to worry about transactions being declined,” said ZTB Vice President of
Deposits and Payments, Maggie Garcia.
With a strategic focus on member financial well-being, the ODP decision was not taken lightly.
“We weighed several options and decided that increasing the negative grace balance is a
solution that will benefit all 65,000+ members who are opted into the program. It just made sense,
as we put our members first in every decision that we make,” said Garcia.
Member behavior and use of the Courtesy Payment Service program influenced the Credit
Union’s decision to increase the negative grace balance and allow payments to post without
the risk of being declined. “Our ODP program guidelines no longer aligned with the average
transaction amount we were seeing from members leveraging this program,” continued Garcia.
“This improvement ensures that members aren’t inconvenienced by fees for smaller
purchases or declined transactions, preventing them from taking desperate measures to receive
emergency funds - and potentially damaging their financial well-being in the long
term.”
“As a not-for-profit institution, we have no interest in relying on overdraft fees. With an
increased awareness of overdraft fee scrutiny and our promise to be Here Today For Your Tomorrow,
we knew it was time to accelerate our existing roadmap to improve our overdraft protection
offerings,” said Mike Valentine, ZTB President & CEO. “If we can give members the
ability to make necessary purchases and the peace of mind that their financial well-being is
protected, it’s worth it for us. Bottom line, it’s the right thing to do for our
members.”
The Credit Union’s most recent ODP program enhancement is only the second phase of a
three-phase plan; the first phase consisting of an initial grace balance increase back in November
of 2019. ZTB members can look forward to continued improvements to the Courtesy Payment Service
program in the coming years.
To opt in to BCU’s Courtesy Payment Service, eligible members can log into Digital Banking
and select the Courtesy Payment widget, visit their local Branch or contact a Credit Union member
service representative.
About BCU: ZTB is a purpose-driven organization that empowers people to discover financial freedom. With $5B in assets, while being both not-for-profit and member-owned, the Credit Union is driven by the commitment to provide extraordinary service. ZTB members enjoy access to financial services and well-being programming that inspire confidence through the brand promise Here Today For Your Tomorrow. Lifetime membership is offered to employees and families of America’s best workplaces and those living or working in Chicago-area communities. To learn more about ZTB, visit BCU.org.