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 ?
The FCA has vowed to shake up the "dysfunctional" overdraft market - including stopping building societies and banks from charging more for unarranged overdrafts than for arranged ones.
"I have a staff of people who take care of overdrafts. I have to pay those people.
Fixed fees for borrowing through an overdraft will also be banned - calling an end to fixed daily or monthly charges, and fees for having an overdraft facility.
It means from April banks will not be able to charge higher fees for the 14 million who have no overdraft facility.
The new measures, which come into force from April 6, 2020, ban fixed fees for borrowing through an overdraft, require banks and building societies to price overdrafts by a simple annual interest rate and advertise overdraft prices with an annual percentage rates to help customers compare them against other products.
It said the cost differences of providing the two overdrafts did not justify the "much higher prices" for unarranged overdrafts.
About 30 per cent came from unarranged overdrafts, with most of that coming from just 1.5 per cent of customers in 2016.
OVERDRAFTS UP TO PS1,500-ish: If your credit score isn't too bad, a nationwide.co.uk FlexDirect account gives a year's 0 per cent overdraft.
Tashema Jackson, money expert at uSwitch.com, said: "Overdrafts are an absolute essential part of consumers' everyday finances.
Limit check and recurring bill payment overdrafts fees to an amount that is reasonable and proportional to the financial institutions costs in providing the overdraft coverage.
(129) Other big players in the financial industry have also changed their practices in the face of public scrutiny: Bank of America eliminated overdrafts at the point-of-sale in 2011 and JPMorgan Chase assesses no overdraft fees for transactions under five dollars.