overdraft

(redirected from Overdraft protection)
Also found in: Dictionary, Thesaurus, Financial, Encyclopedia.

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 ?
But Sasso said some attorneys don't report and can use the overdraft protection to hide trust account problems from the Bar and their clients.
Customers who already have an overdraft protection line of credit must sometimes choose between the bounce protection feature and the overdraft protection line of credit.
Nealon added, "Credit unions are focused on providing value to their members by offering responsible overdraft protection.
TD Student Checking--free checking for full-time students, with no minimum balance requirement, and offering one free overdraft per year, free overdraft protection transfers, and the first order of standard checks for free.
According to the survey, 46 per cent of customers have already opted for overdraft protection, or would opt for it in future to ensure debit card transactions.
Most customers, though, will probably welcome the overdraft protection because they don't want their debit cards to be declined, said Don Woodland, executive vice president and director of the Graduate School of Banking at Louisiana State University.
The idea of overdraft protection isn't new - banks have long been willing to cover not-sufficient-funds checks for their best customers, or make an automatic transfer from a savings account to avoid a checking overdraft.
Consider alternative forms of overdraft protection, such as linking your debit card to your savings account
The amendments to Regulation DD, which implements the Truth in Savings Act, in part address the service often referred to as bounced-check protection or courtesy overdraft protection.
Interagency Joint Guidance on Overdraft Protection Programs.
The Federal Financial Institutions Examination Council (FFIEC) proposed guidance to help insured depository institutions improve their disclosure to customers with overdraft protection accounts (www.
Because the bank had not formally extended overdraft protection to the campaign account, the FEC considered the overdrafts to be campaign contributions--which banks are prohibited from making under the Federal Election Campaign Act of 1971.