An overdraft occurs when you don’t have enough money in your account to cover a transaction, and if you’re opted into an overdraft protection program, your bank would pay for the transaction but charge you a fee.
While declining overdraft protections means banks won’t charge you a fee for debit card and ATM transactions, you can still be charged a fee if you overdraw your account with a check or recurring electronic payment. Some banks, however, allow you to opt-out of these overdrafts, but you may be charged a non-sufficient funds (NSF) fee from the bank or credit union, which is often the same amount as an overdraft fee. In addition, declined payments may trigger a returned item fee from the merchant.
If you are enrolled in an overdraft protection program with your bank or credit union, you can change your mind at any time. Just notify them that you no longer want this coverage.
If you do not believe you’ve authorized debit overdraft protection, and the bank charges you a debit overdraft fee, you may file a complaint with the CFPB.
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