Recent Examples of overdraft from the Web
An automatic payment was sent to the Hollywood Hills Rehabilitation Center, which even resulted in an overdraft fee.
Instead, there was an automatic payment of $958 to Hollywood Hills that resulted in an overdraft fee.
International trade would be conducted in bancors with rules about the size of overdrafts allowed, preventing imbalances getting too big.
The average overdraft fee for metro Milwaukee was $33.20.
While household debt, including mortgages, personal loans and overdrafts, totals more than 1.8 trillion pounds in Britain, McDonnell’s proposals target credit card companies.
Some of the unauthorized charges caused users' bank accounts to be overdrawn, spurring overdraft fees.
Among them was a decadelong $203 million class-action case over bank overdraft fees, which Wells Fargo lost in 2016.
Wells Fargo has also been embroiled in other consumer spats in recent months over unwanted car insurance, mortgage lending and overdraft fees.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'overdraft.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of overdraft
Financial Definition of OVERDRAFT
What It Is
How It Works
Let’s assume John Doe has $1,000 in his checking account today. He goes to the mall and writes a check for $1,250 at a furniture store. Because there are insufficient funds to cover the amount of the check, John is going to overdraft his account.
When the furniture retailer attempts to deposit the check, the furniture retailer’s bank (Bank ABC) will present the check to John Doe’s bank for payment. John Doe’s bank will then either pay the check (which might occur if John Doe has overdraft protection at his bank) or "bounce" the check by returning it to Bank ABC without payment. Often, banks stamp the check itself with a large "NSF" stamp (which stands for “nonsufficient funds”). Typically, Bank ABC will charge the furniture retailer a fee for presenting a bad check, and John Doe’s bank will charge John for the overdraft. The furniture store will also likely charge John Doe a fee for the overdraft.
Why It Matters
In most states, writing a bad check is at least a misdemeanor, with the consequences growing depending on the state, the amount involved and whether the transaction crosses state lines. Most overdrafts are simply oversights by consumers, so even if the police are not involved, the fees for bouncing checks can run in the hundreds or even thousands of dollars if the check writer is particularly disorganized. For this reason, it’s important to have an overdraft line or a second account from which a bank may draw when the funds in the check writer’s primary account are insufficient.
OVERDRAFT Defined for English Language Learners
legal Definition of overdraft
Seen and Heard
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