overdraft

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Related to overdrafts: Cash credit

Overdraft

A check that is drawn on an account containing less money than the amount stated on the check.

The term overdraft is also used in reference to the condition that exists when vouchers or purchase orders are drawn in amounts exceeding the amount that has been appropriated or budgeted.

Cross-references

Commercial Paper.

See: deficit

overdraft

see BANK ACCOUNT.
References in periodicals archive ?
Possible new rules on overdraft protection and fees are one of the top items on the CFPB regulatory agenda this year.
HSBC and its internet and telephone banking brand First Direct are to simplify their unauthorised overdraft charges from November, which they say will result in costs being reduced for the majority of customers.
com Use savings (if you''ve any) HAVING overdrafts and savings isn''t sensible.
The bank is also removing its authorised overdraft fee cap of GBP20 a month on these accounts.
Select and Select Silver customers with arranged overdrafts will be affected by the NatWest/RBS changes.
Consumers Union noted that there are more affordable options for consumers when it comes to covering overdrafts triggered by debit cards or checks.
This style of daily overdraft fee tariff is becoming more common but it is expensive on small overdrafts.
DIPPING into your overdraft seems like an easy answer to the short-term cashflow problems we all have from time to time.
The majority of new/renewed loan or overdraft applicants were successful.
If overdrafts could be covered by a different mechanism (such as a linked savings account, for example), make sure customers know they have alternatives.
As of July 1, federal regulations require that when you open a new bank account, you will have to choose to be covered by overdraft services for one-time, point-of-purchase debit card or ATM transactions.
Business Secretary Vince Cable has accused high street banks of "ripping off" their customers as it was disclosed some are charging up to 167 per cent interest on unauthorised overdrafts.