What Is a Cash Overdraft?

Credit card overdrafts are short-term overdrafts granted by credit card issuers to cardholders during card purchases. For credit cards, "allow first, pay later" and allow overdrafts are important features. For debit credit cards, "deposit before consumption" should be used, but on the premise that it is determined to be an overdraft in good faith and the repayment is guaranteed, the cardholder is also allowed to overdraw an appropriate amount within a short period of time when the money is urgently needed. Overdraft interest is generally much higher than bank loans over the same period, and card issuers have a whole set of measures to prevent and recover overdraft risk losses. ^[1]

Credit card overdraft

For credit cards, "allow first, pay later" and allow overdrafts are important features. For debit credit cards, "deposit before consumption" should be used, but on the premise that it is determined to be an overdraft in good faith and the repayment is guaranteed, the cardholder is also allowed to overdraw an appropriate amount within a short period of time when the money is urgently needed. Overdraft interest is generally much higher than bank loans over the same period, and card issuers have a whole set of measures to prevent and recover overdraft risk losses.

In addition, "Credit Card Overdraft" is an accounting subject, number 1322

In the course of accounting for credit cards,

Credit card overdrafts can be up to 60 days.

Interest on credit card overdrafts is calculated at a rate of five ten thousandths per day (including the current day) within 15 days from the date of signing the bill or bank account. Calculated on a daily basis at 15 / 10,000. Overdraft interest calculation is not divided into segments, and interest is calculated according to the deadline or the highest interest rate of the highest overdraft amount.

To

Each cardholder must pay attention to the following matters when applying for a card:

On November 28, 2018, the Supreme People's Court and Supreme People's Procuratorate announced the "Decision of the Supreme People's Court and Supreme People's Procuratorate on Amending the" Interpretation of Several Issues Concerning the Specific Application of Laws in Handling Criminal Cases That Hinder Credit Card Management ", on December 1 Effective from today. Among them, malicious overdraft credit cards with an amount of more than 50,000 yuan but less than 500,000 yuan will be deemed as "larger amounts" of malicious overdraft credit cards stipulated by the Criminal Law; if the amount is more than 500,000 yuan and less than 5 million yuan, they shall It is recognized as "a huge amount" as provided by the criminal law; if the amount is more than 5 million yuan, it shall be considered as "a very large amount" as stipulated by the criminal law. ^[3]