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 ?
Despite criticism of the size of some fees charged, unarranged overdraft penalty fees have fallen by just PS1.
uk, suggests those who dip in and out of their overdrafts should make the most of banks' free text alerts when they're about to go into the red, and if possible, top up their current account from any savings.
Overdraft charges have caused many a headache for current account customers, whether it's through busting your overdraft limit without realising it or being hit with a big monthly bill.
Those in hardship due to bank charges for going beyond overdraft limits may be able to reclaim them.
As a result, this led to an over-estimation of the consumer's capacity to service the overdraft facility.
One recommendation to further transparency is to change the language of Regulation E's provision requiring the disclosure of alternative plans for covering overdrafts from permissive to mandatory.
The possible direction of new regulations for overdraft protection was indicated in a letter last fall from Rep.
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.
US federal consumer watchdog The Consumer Financial Protection Bureau issued a review on overdrafts of nine banks over USD 10bn in assets.
This style of daily overdraft fee tariff is becoming more common but it is expensive on small overdrafts.