Share Drafts

A share draft account at a credit union generally works like a checking account. Credit union members use share draft accounts the same way as bank checking accounts—to withdraw funds from their account or to pay for goods and services using checks.

Depending on the services a credit union offers, a member may be able to access the funds in their share draft account using an ATM, debit card, or mobile app, and may be able to send funds via an electronic payment system (for example, wire transfer or ACH).

Overdraft and courtesy pay programs may be available to members with share draft checking accounts. These programs may help reduce some of the costs associated with overdrawn accounts, while they have also become another source of income for credit unions. For more information, see CFPB regulation § 1005.17, Requirements for overdraft services.

For more information on ACH and wires, see the Electronic Payment Systems section of the Examiner’s Guide.

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