What is a debit card overdraft?

Answer 1

A debit card is a card that pulls money out of your bank account directly. Each time you withdraw money out of your account you are "drafting" money. When you use your debit card, and don't have sufficient funds to cover the cost, but might have some of the funds to cover the cost of whatever it is you're buying, you then "overdraft." The bank normally will cover the remaining cost of your purchase(depending on how much you are overdrafting) but will charge you a high fee of anywhere between $20 and $40 on top of whatever you owe them from the remaining cost of the item you purchased that they helped you pay for. They'll pay extra money for you to make the purchase and then charge you a large fee. It's how they make money. Some banks, depending on the type of account you opened, will wave the 1st couple of overdrafts. If you're smart, you'll open an account that will cover overdrafts so you don't get charged the high fees. Sometimes you can link a credit card or savings account to your bank account that will take care of any possibility of overdrafts.

Answer 2

It's like when you write a check, but you don't have the money in your account to cover the check. It's just like that only it's an electronic transaction and not an actual paper check. The overdraft amount is the amount of money that was not available in your account. You should also have an overdraft penalty fee that comes along with using your debit card when you don't have the dough in your account. You will owe the money that was not available, plus the overdraft fee. Some banks are more lenient than others if its your first time over drafting and you have had the account for more than 8 mos. to a year sometimes they can take it the fee off. Just call and see or go see your local bank teller.

Answer 3

It's like everyone said-an overdraft means you drafted too much money out of your account. There will be an accompanying overdraft fee and possibly overdraft interest charged. Better get some cash in that account. . .

I guess I should also explain and old term- a draft would be a check on your account or removal of money, therefore an overdraft. . .

Answer 4

Why not try and transfer the money from your savings to your checking account from home online right now? Most likely, ebay might have placed a "hold" for the amount, but it probably wasn't actually taken out yet (especially seeing as how it's a Sunday). You get charged a fee if your bank actually honor the payment even though you had insufficient funds. Don't depend on the bank to take the money from your savings for you, they'd rather take the fee when you mess up.

Answer 5

It's the fee charged when you spend more than you have in the account connected with the card. Instead of declining your card, the credit card companies have decided that it's more lucrative to let you spend the money, but then charge you for spending more than you have in bank. Clever, huh?

Answer 6

It's when you spend more than you have in your bank account. It's not a credit card so you can't charge stuff even if you chose the credit card option.

Answer 7

it is when you used your debit card for a purchase but did not have the funds (enough money) in the bank to cover whatever it was that you bought.

Answer 8

a bank loan activated by using the card over the limit

Answer 9

Using more than you have to back up in your account. It's just like writing a check that bounces.

Answer 10

when you take more money out of your account than there is in it you will be charged to ALOT