Overdraft Fees
When you draw money from an account at a depository institution through any means, including but not limited to a check, debit card transaction, or authorized electronic payment for more than the amount in your checking account, you “overdraw” your account. Depending on the agreement you executed when you opened the account, the institution may pay the amount even though you do not have the funds. If this occurs, you may be charged an “overdraft” fee. Alternatively, if the institution does not pay the amount, the institution may charge you a fee for a “bounced check” or “insufficient funds”. Depending on the type of transaction made, you may be charged an additional fee by the entity you attempted to pay.
Federal agencies have provided additional resources in the links below with information about overdraft fees and how to prevent them:
www.consumerfinance.gov/ask-cfpb/what-is-an-overdraft-en-1035/