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Credit unions rely on non-interest income as a reliable source of revenue. Courtesy pay is one of those services that credit union can offer their members to help the member stay in the good graces of their creditors and other vendors. Sharetec provides credit unions with the next generation service in which tiers dictate what fees the member pays for this service.

Courtesy Pay covers overdrafts, up to an approved limit, in exchange for a flat fee per overdraft transaction. The member receives the protection from bouncing a check, which saves the member embarrassment as well as protecting their credit score. A fee is then charged to the member for the service of covering the check despite insufficient funds in the member’s account.

Under a tiered approach to courtesy pay, members that use the service the most get charged the higher tier rate while the other members enjoy a reduced rate. Because of this increased rate tier, many credit unions see a significant boost in their monthly income. One credit union saw an 11 percent increase when they made the switch from a flat rate to the tiered model. Click here to read our case study on Tiered Courtesy Pay.

Tiered Courtesy Pay offers all the benefits of its flat-rate predecessor and comes highly recommended by industry leaders. All In all, credit unions see increases in monthly income while members enjoy the benefit of lower fees. Sharetec continues to provide cutting edge solutions for all size credit unions and is an industry leading core processing provider.