If someone has $20 in a bank account?

Question

...and make a payment online for $250 using their checking account. Will that money be paid or not?

If you make a payment greater than the amount you have in the bank, will the money be paid ?

Answer 1

it depends, do you have an overdraft protection account linked to it? if so then so long as you have enough to cover the expense in that then yes, otherwise it depends on the bank, most of the times its a no and you're charged a nsf fee on top of it.
now my question is if this was done today after 3pm, banks are on the next business day so if you put in the 250 in cash into it before they switch over to the next business day, you may be fine, ive seen it swing both ways, if this was done however a while back or before the switch to the next business day then you're in trouble

Answer 2

Well, it depends on the bank. Some banks may pay because it will be considered an ACH debit. If it is an E check so to speak, it will not be paid and returned. If it is paid, you will still be charged an NSF fee and be overdrawn obviously. SOme banks also charge fees per day for being overdrawn. This was not a smart thing to do and you will pay for it one way or another. I suggest you get the money in the account NOW to avoid any chaos. Also consider the payee will charge you for payment being returned also. Big mistake. If you have been overdrawn in the past 6 months, I can almost guarantee the bank will not pay it.

Answer 3

If you have overdraft protection the bank will pay the check for you, but they will then charge you an overdraft fee (and you of course still have to put that $250 in the bank). The fee I believe varies depending on the bank. They also like to take the largest check amount you wrote first, then work their way down. So you might start getting like $50 overdraft fees for using your debit card for buying a cheeseburger at McDonald's for example. I would suggest you not write the check if you don't have the money to cover it. Especially since if after 5 days or so with a negative balance they start charging you a daily fee for the negative balance. Its just a mess.

Answer 4

While some banks will float small shortages, $250 is way beyond the line. The bank won't cover the payment and you will get a bounced check fee.

If you were paying a bill online, you will probably get hit with another fee from them.

It's a really bad idea to write checks or use debit cards or make online payments when you don't have the funds in your account to cover it.

Answer 5

Depends on the bank policy. It used to be that if you went over by even a dollar the check would bounce and not be paid. Today many banks would rather pay the overdraft and charge an overdraft fee of as much as $39. Now they see overdrafts as a way to generate fees. So the answer really depends on your bank's policy in the matter.

My bank has "overdraft protection" which is designed to make you sloppy about writing checks over your balance because you know they will be paid, so it's not a major crisis, you just get hit with a big fee every time.

Fee revenue tastes yummy to a bank.

Answer 6

No the $250 will not be paid there not enought funds in the account to process the payment. Now if you have overdraft protection you will be covered but you will have to pay a fee for having your account negative since it will go negative after processing the payment.

Answer 7

Depends on your bank. Sometimes the payment will go through, but your bank will charge you an overdraft fee (can be up to $35 or $40!) and of course you will have to pay back your negative balance (including the overdraft fee) within a certain time period or you could be in serious legal trouble.

Answer 8

Doesn't sound like a good idea to me!
It depends on your bank, and if you have overdraft protection.
It could possibly be paid, but then it might be returned for funds not being in the account. Then you will most likely get some fees for non sufficient funds.

Answer 9

It depends on what your bank offers - understand that it's a loan and probably at the highest loan rate they have. There are banks and credit unions that offer overdraft protection plans, but it's going to cost you alot of money. A better way is to use a credit card, though IMHO they also vacuum money from your pocket into theirs far too easily. 18 - 30+ % is almost as bad as the guys with the baseball bats and knee cappers...

Answer 10

I have Washington mutual with $300 over draft limit.If I made a purchase online and I only had $20 dollars in the bank.The purchace would go though,But washington will add $20 fee for over the limit.Make sure you pay the debt in full real soon or they will close the bank account.