{"id":20567,"date":"2022-09-26T10:00:00","date_gmt":"2022-09-26T10:00:00","guid":{"rendered":"https:\/\/worldscholarshipforum.com\/wealth\/?p=20567"},"modified":"2022-09-26T16:26:07","modified_gmt":"2022-09-26T16:26:07","slug":"overdraft-a-debit-card","status":"publish","type":"post","link":"https:\/\/kiiky.com\/wealth\/overdraft-a-debit-card\/","title":{"rendered":"How to Overdraft A Debit Card","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

Debit cards are simple to operate, especially in sending money.<\/a><\/strong> Some studies show that when customers use debit cards instead of paper checks, they spend 20% to 30% more. <\/p>\n\n\n\n

Normally, an overdraft occurs when you spend more money than you have in your account and your bank covers the difference.<\/p>\n\n\n\n

On some occasions, people are forced to turn to extreme measures, such as applying for personal loans<\/strong><\/a> when they \u201cneed cash quickly,\u201d while others consult a debt relief organization to learn how to get out from under onerous debt.<\/p>\n\n\n\n

There have been some regulatory improvements that may provide some respite from the vicious cycle of overdraft fees, negative balances, and unpaid payments.<\/p>\n\n\n\n

In this article, I will show you different ways you can overdraft a debit card. Carefully read through.<\/p>\n\n\n\n

About Debit Card Overdraft Service<\/strong><\/span><\/h2>\n\n\n\n

The Debit Card Overdraft Service is a service that allows you to borrow money using your debit card.<\/p>\n\n\n\n

For this to apply to your account, you must opt into the Debit Card Overdraft Service. <\/p>\n\n\n\n

When you don\u2019t have enough available balance to cover your debit card transactions or ATM withdrawals, you can use this service.<\/p>\n\n\n\n

If we do, your account will become overdrawn, and an overdraft fee will be applied. <\/p>\n\n\n\n

If this happens, you must deposit or transfer funds into your account as quickly as possible to restore the account\u2019s positive balance.<\/p>\n\n\n\n

Even if you choose to use the service, we reserve the right to refuse to fund your transactions and overdraw your account. Your transaction may be declined at some point.<\/p>\n\n\n\n

If you don\u2019t sign up for Debit Card Overdraft Service and don’t have enough money, your ATM withdrawals and ordinary debit card purchases will be denied.<\/p>\n\n\n\n

If you don\u2019t have enough Available Balance in your account, you may want to Opt-Out to avoid paying overdraft penalties by having your ATM or debit card purchase denied.<\/p>\n\n\n\n

Alternatively, you may opt for Debit Card Overdraft Service and be willing to pay an overdraft fee in exchange for the service\u2019s ability to help you avoid denied transactions at a store or ATM, at our discretion.<\/p>\n\n\n\n\n

Read Also: How Do Prepaid Debit Cards Work?<\/a><\/strong><\/p>\n\n\n\n\n

What does it mean to be overdrawn on a debit card?<\/strong><\/h2>\n\n\n\n

It means you\u2019re going to use your credit card to buy something even though you don\u2019t have enough money in your checking account.<\/p>\n\n\n\n

If you choose to use your bank\u2019s overdraft protection, the transaction will go through but you\u2019ll be charged an overdraft fee \u2013 generally $35.<\/p>\n\n\n\n

Is it possible to overdraft a debit card at an ATM?<\/strong><\/h2>\n\n\n\n

Yes, to put it succinctly. However, you must ensure that you have chosen that option at your bank. It is cheaper to overdraw at an ATM than to use your debit card many times.<\/p>\n\n\n\n

Because each transaction costs $35, it\u2019s preferable to withdraw $100 and pay $35 in fees than to use your card for a few minor purchases that would cost you more than $100 in fees.<\/p>\n\n\n\n

Is it possible to make a withdrawal from a negative account?<\/strong><\/h2>\n\n\n\n

Yes, you certainly can! If you sign up for overdraft protection with your bank, you\u2019ll be allowed to withdraw money from a negative account and avoid the embarrassment of having your debit card denied in a store.<\/p>\n\n\n\n

When you truly need to buy something before your next paycheck, withdrawing from a negative account can be helpful.<\/p>\n\n\n\n

You should use alternative protection services if you find yourself in a scenario where you actively desire to overdraft.<\/p>\n\n\n\n\n

Read Also: <\/strong>20 Best Debit Cards For Kids To Become Money Savvy<\/a><\/p>\n\n\n\n\n

Why do people overdraw their accounts?<\/strong><\/h2>\n\n\n\n

Purchases are not being tracked.<\/p>\n\n\n\n

Scheduled Payments Deducted Early<\/h3>\n\n\n\n

Automatic payments from your bank account can be set up for gym memberships, insurance payments, and even medical expenditures. <\/p>\n\n\n\n

In most cases, you get to pick the withdrawal date. Each of these payments, however, can be claimed up to four days early! <\/p>\n\n\n\n

If you were counting on your mid-month payday and a holiday is approaching, those draft payments will be processed BEFORE your paycheck arrives. Of course, this can lead to an overdraft on your account.<\/p>\n\n\n\n

Delayed Updates<\/h3>\n\n\n\n

You might believe that every transaction made with your debit card is promptly logged in your account. <\/p>\n\n\n\n

It appears to be at the gas station! However, the unfortunate reality is that many purchases take up to 24 hours to appear. <\/p>\n\n\n\n

This may not be a problem if you keep track of all of your expenditures, but if you rely on the bank\u2019s bookkeeping, you might be in big trouble.<\/p>\n\n\n\n

Allowing Overdrafts vs. Denying Overdrafts<\/strong><\/h2>\n\n\n\n

Allowing overdrafts will be an option provided by your bank. Overdraft protection has both advantages and disadvantages:<\/p>\n\n\n\n