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Regulation D: What You Need to Know

Regulation D or Reg. D is a government regulation, which among other things defines transaction accounts and non-transaction accounts. Transaction accounts are allowed an unlimited amount of transactions on the account (i.e. checking (share draft) accounts). Reg. D places limitations on non-transaction accounts (i.e. savings (share) accounts, money market accounts, etc.). At Velocity share (savings) accounts and money market accounts fall under Reg. D as non-transaction accounts.

The section of Reg. D causing the most confusion is the statement that during any month, on a non-transactional account, a member is limited to a total of six preauthorized debits, automatic withdrawals, telephone transfers, or online banking transfers.

Transactions counted against Reg. D limits

• Transfers from a non-transactional account using online banking
• Transfers from a non-transactional account using voice banking
• Transfers from a non-transactional account made by calling the Member Service Center
• Transfers from a non-transactional account to a checking account to cover a check presented against insufficient funds
• Transfers from a non-transactional account to a checking account to cover a Debit/ATM card transaction presented against insufficient funds

Transactions not counted against Reg. D limits

• Transaction by mail
• Transaction at an ATM machine
• Transaction at any of our branch offices or transactions made in person
• Any deposit at any time

An easy way to remember:

A Reg. D transaction is a withdrawal from a non-transactional account that you could complete at home or an electronic debit authorized by you to your savings account.

Once you exceed the Reg. D limits the following will apply:

• On online banking and voice banking
• You will get an error message that the Reg. D limit has been reached and the transaction will not be processed.
• When you call our call center for your transfer
• The representative will receive a message that states “…transaction did NOT post successfully…will exceed allowable REG D transfers” and the transaction will not post.
• During a share draft or ACH post
• The item will be returned
• During a debit card post
• Since we cannot return authorized debit card transactions, the item will post; however, when you have exceeded your Reg D transfer limit and your account is overdrawn, you will be charged a $30.00 overdraft fee.

You can check at any time how many Reg. D transactions you have had during the current month by contacting a member service representative at 512.469.7000.

Tips to help you manage your savings or money market accounts and avoid Regulation D limits:

Plan ahead and make one large transfer instead of several small transfers. Each regulated transfer (made by calling the Member Service Center, through online banking, or voice banking) counts as one transaction, no matter what the amount. You may also utilize an ATM to transfer funds between your accounts.

Consider visiting a branch office or mailing your transfer request. These transfers are not limited.

Balance your checking account on a regular basis. This will help limit the number of overdraft transfers from your savings account, which counts towards the number of Reg D transactions allowed. We suggest you do not set up ACH automatic debits with merchants or service providers by giving them your account number to come out of your savings account. This limits your transfer availability. Set ACH withdrawals to come out of your checking account, which is not subject to this regulation. To ensure you are using the correct checking account number, refer to the number on the bottom of your checks.

Account Agreement (Reg. E)
Privilege Pay

Velocity’s Privilege Pay is an overdraft protection service for qualified members that is activated when you try to withdraw money from your checking account and do not have the funds to cover a transaction.

Due to a recent government regulation, you must now request this service – or “opt in” – in order for Velocity to provide you with Privilege Pay overdraft protection on your ATM and everyday debit card transactions. There is no fee for opting in, but there is a $30 fee for each overdraft.

Some benefits of Privilege Pay:

Convenience – Not enough funds in your account to complete a transaction? Privilege Pay covers your transaction on the spot.

Privacy – Privilege Pay can prevent the embarrassment of having your debit card declined at your favorite store or restaurant. Neither the merchant nor other patrons will be aware of the overdrawn status of your account.

Peace of Mind – Privilege Pay can assist in urgent circumstances such as a vehicle break-down or booking an emergency flight.

For qualified members, Velocity’s checking accounts come standard with Privilege Pay overdraft protection for the following transactions: checks and other transactions using your checking account number, and automatic bill payments. To extend Privilege Pay to everyday debit card and ATM transactions, you will need to let us know that you want it.

Our policy is to make funds from your cash and check deposits available to you on the 1st business day after the day we receive your deposit.  Electronic direct deposits will be available on the day we receive the deposit.  In some cases, we will not make all of the funds that you deposit by check available to you on the 1st business day after the day of your deposit.  We will notify you at the time you make your deposit.

In order to assist the government, fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each individual who opens an account. What this means for you: when you open an account, we will ask for your name, address, date of birth, driver’s license, and other information that will allow us to identify you. We may also ask to see other identifying documents.

Under Regulation GG (Unlawful Internet Gambling Enforcement Act), this notice is to inform you that restricted transactions are prohibited from being processed through this account or relationship. Restricted transactions generally include, but are not limited to, those in which credit, electronic fund transfers, checks, debit card or credit card transactions, or drafts are knowingly accepted by gambling businesses in connection with the participation by others in unlawful Internet gambling. By maintaining an account with us, you certify that you do not engage in Internet gambling, and you agree to notify us if your account is ever used for Internet gambling of any kind. If you do not, we may terminate your access to various payment methods or close your account.

This link leads to the machine-readable files that are made available in response to the federal Transparency in Coverage Rule and includes negotiated service rates and out-of-network allowed amounts between health plans and healthcare providers. The machine-readable files are formatted to allow researchers, regulators, and application developers to more easily access and analyze data.

https://www.cigna.com/legal/compliance/machine-readable-files