overdraft
noun
over·draft
ˈō-vər-ˌdraft 
1
: an act of overdrawing at a bank : the state of being overdrawn
also
: the sum overdrawn
2
Examples of overdraft in a Sentence
Recent Examples on the Web
Last month, the two organizations also said the CFPB's rollback of regulations on overdraft and credit card late fees, and the dismissal of enforcement cases would increase consumer costs by $18 billion.
—
Douglas Gillison, USA Today, 30 July 2025
The banking industry strongly opposed the Biden rule, which would cap overdraft fees at just $5 for banks and financial institutions with more than $10 billion in assets unless the institutions opt for a fee that merely covers their own costs or treat the overdraft payment as a loan.
—Zach Halaschak, The Washington Examiner, 9 Apr. 2025
At the very least, banks will offer more expensive overdraft protection.
—Norbert Michel, Forbes.com, 31 Mar. 2025
As Lander has explained in interviews, the Citibank account targeted by DOGE only had $1 million in it as of the Feb. 11 reversal, but was attached to a large overdraft facility.
—Felix Salmon, Axios, 18 Feb. 2025
See All Example Sentences for overdraft
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Douglas Gillison, USA Today, 30 July 2025
The banking industry strongly opposed the Biden rule, which would cap overdraft fees at just $5 for banks and financial institutions with more than $10 billion in assets unless the institutions opt for a fee that merely covers their own costs or treat the overdraft payment as a loan.
—Zach Halaschak, The Washington Examiner, 9 Apr. 2025
At the very least, banks will offer more expensive overdraft protection.
—Norbert Michel, Forbes.com, 31 Mar. 2025
As Lander has explained in interviews, the Citibank account targeted by DOGE only had $1 million in it as of the Feb. 11 reversal, but was attached to a large overdraft facility.
—Felix Salmon, Axios, 18 Feb. 2025
See All Example Sentences for overdraft
Cite this Entry
“Overdraft.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/overdraft. Accessed 15 Aug. 2025.
Copy CitationKids Definition
overdraft
noun
over·draft
ˈō-vər-ˌdraft
: an overdrawing of a bank account or the amount overdrawn
Legal Definition
overdraft
noun
over·draft
ˈō-vər-ˌdraft
1
: the act or result of drawing on a bank account for more than the balance
also
: the amount exceeding the balance in an overdraft
2
: a loan or credit extended on a current account especially to established or institutional customers
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