financialU

Overdraft Protection DEMO

What is an Overdraft?

Overdraft is a term used when withdrawals made from a deposit account are more than the available funds, which result in a negative balance. Typical transactions that could cause an overdraft include checks written, automatic payments or transfers, debit card purchases or ATM withdrawals.

Overdraft Causes

Overdrafts can occur for a variety of reasons. Here are just a few of the more common examples:

  • Addition or subtraction error, resulting in less in your account than expected

  • An item in your deposit was returned and you already had made payments against the deposited amount

  • Forgetting to make a deposit

  • Automatic payment not entered in your register

  • Soft holds-you may have used your card for a hotel stay and an amount representing your room fees is placed on hold-even though the final amount may be less, or you may not use that particular card for final payment.

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