overdraft

noun

over·​draft ˈō-vər-ˌdraft How to pronounce overdraft (audio)
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 The Biden administration is proposing a new rule that could limit bank overdraft fees to as little as $3. Kate Gibson, CBS News, 17 Jan. 2024 The Treasury Department, meanwhile, fined Bank of America last July for imposing overdraft fees multiple times on a single transaction. Tony Romm, Washington Post, 17 Jan. 2024 Some experts said card issuers could face growing scrutiny over their APR-setting practices, especially after lenders’ recent changes to overdraft policies have cut into their revenue. J.j. McCorvey, NBC News, 22 Feb. 2024 Typically, large banks charge $35 per transaction in the event of an overdraft. Max Zahn, ABC News, 17 Jan. 2024 Future overdraft fees charged by banks would also not be allowed to exceed the banks' losses. Joey Garrison, USA TODAY, 17 Jan. 2024 At a hearing of the Senate Banking Committee Wednesday, several bank CEOs testified about their institutions’ determination to reduce or even eliminate overdraft charges. Michael Hiltzik, Los Angeles Times, 7 Dec. 2023 New filings with the Federal Election Commission show a significant overdraft between July and September: negative $16,526.09. Edith Olmsted, The New Republic, 17 Oct. 2023 Customers were wrongly charged with overdraft fees, and for unneeded automobile insurance and other products. Aaron Gregg, Washington Post, 15 Feb. 2024

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'overdraft.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1812, in the meaning defined at sense 1

Time Traveler
The first known use of overdraft was in 1812

Dictionary Entries Near overdraft

Cite this Entry

“Overdraft.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/overdraft. Accessed 15 Apr. 2024.

Kids Definition

overdraft

noun
over·​draft ˈō-vər-ˌdraft How to pronounce overdraft (audio)
: an overdrawing of a bank account or the amount overdrawn

Legal Definition

overdraft

noun
over·​draft ˈō-vər-ˌdraft How to pronounce overdraft (audio)
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

More from Merriam-Webster on overdraft

Last Updated: - Updated example sentences
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