Overdraft fee

An overdraft fee is a penalty that banks charge when a customer has made a transaction that dips below the available funds in their account. Instead of declining a charge, your bank will cover the payment and charge a fee. If you overdraft, you will owe the money for the original purchase as well as the overdraft fee.

Sources:

Cabello, M. (2023, December 8). Bank overdraft fees: How they work and how to avoid them. Retrieved from: https://cnet.co/49cNbcG

Kagan, J. (2023, September 11). Overdraft explained: Fees, protection, and types. Retrieved from: https://bit.ly/42nbBhf

Bessette, C. (2023, October 26). Overdraft fees: News, key terms and resources. Retrieved from: https://bit.ly/3ueENdM