Pennsylvania Credit Union Association

JMFA Overdraft Privilege Program

It’s rare that a financial service is able to increase both member satisfaction and credit union non-interest income at the same time. But JMFA OVERDRAFT PRIVILEGE® can accomplish just that.

What is an overdraft privilege program?

An overdraft privilege program is a service structured to allow members to overdraw their checking or share draft account within pre-established limits.

Member Benefits

An overdraft privilege program provides financial stability to members who occasionally have a financia

l emergency or make an error on their account. An overdraft privilege program is not administered like a loan. Members may overdraw their transaction accounts subject to a one-time, pre-established limit. The overdrawn account must return to a positive balance every 30 days.

While the majority of members will consider the service merely as a "safety net," a significant number of members look at the program as a useful financial service from their credit union.

Credit Union Benefits

Implementing an overdraft privilege program can result in a 50 to 300 percent increase in non-interest income. Plus, by increasing the number of share draft accounts and NSF activity, credit unions can generate more transactions and produce more revenue per member. Currently, more than 1,500 financial institutions nationwide have chosen JMFA for their overdraft solution. 

JMFA Overdraft Privilege® program provides:

• An automated collection system that interfaces with the credit union’s core processing system.
• Established pre-set limits for members, based on a thorough analysis of share draft activity.
• Disclosures, member notifications and procedures to comply with applicable regulations.
• Employee training on the compliance and operational issues of the program, as well as how to explain the advantages of overdraft privilege to members.

During the term of the contract, a JMFA Relationship Manager provides monthly tracking of the overdraft privilege program, as well as quarterly on-site reviews.

JMFA Overdraft Privilege® Case Studies

• Corry Federal Credit Union – Corry, PA
• First Capital FCU, York, PA
• Grove City Area Federal Credit Union – Grove City, PA 
• NET Federal Credit Union – Scranton, PA 
• Timberland Federal Credit Union – DuBois, PA

Leading the Industry

For more than 30 years, John M. Floyd & Associates (JMFA) has successfully delivered effective profitability enhancement services to more than 2,000 financial institutions throughout the U.S. JMFA is the leading provider of overdraft programs and offers guarantees for 100% compliance with all state and federal agencies, 100% core processor compatibility and 100% customer satisfaction.

With Privilege Manager CRM® software, JMFA provides credit unions with the best Windows®-based software to track all NSF activity and effectively administer their program. Privilege Manager CRM® helps credit unions reduce charge-offs by automating collection procedures for overdrawn accounts. It also provides management with detailed reports to monitor and track the credit union’s program.

Guaranteed Results

JMFA’s fees are completely performance-based, which means it only makes money when the credit union does.

For more information or to get started, please contact your Association Representative at 800-932-0661, or e-mail CUSolutions@pcua.org or click here for a FREE, no-obligation Overdraft Privilege Analysis.