What is a monetary overdraft?

cash overdraft occurs when the debit card is used to withdraw money from the current account or to make a purchase, and there are insufficient funds to cover the fee. If the purchase or download goes through, it will create overdrafts in the account and lead to a negative balance that often comes with other major bank fees and sanctions. If an ATM or a shop refuses to pump cash, but it will not always happen.

Usually, cash overdraft has a heavy overdraft fee. Banks sometimes automatically charge this fee for pumping to an account that will collapse as the negative balance continues to increase. Customers who continuously exceed their accounts can find that they face legal sanctions or that their accounts are closed by the bank. Many banks offer overdraft protection, whether free of charge or for a small fee to prevent cash or reflected check. This is usually DONE using the second account as “backups”, JAKO is a credit card or a savings account.

Now that many debit cards can be used as credit cards in stores, it is easy to spend cash overdone, especially if a person in the current account carries a relatively low balance of the month. They often occur when a person uses a debit card for buying or even more purchases, and then forgets to write this amount in a checkbook with all other checks. If this happens several times in a sufficiently short enough period, it will not be long before the cash is pumped. The debit card may or may not be rejected in the store even if it is already pumped. It is important to quickly store funds to pump an account to avoid any other outstanding checks or debit.

Some people use several tricks to prevent cash from overheating. Creating a "buffer" on a check -up account is a great way,Jake it; For example, you place another $ 100 or $ 500 on your account, but I don't write a checkbook. In this way, even if the funds reduce, this buffer can be able to help pumping. Another good practice is to store all income, then at the end of the day or every few days write them in a checkbook. In addition, the use of cash is as much as possible than a debit card, a good way to prevent overdrafts and also maintain a clear picture of how much money it really has.