Overdrafting
/ˈoʊvərˌdræftɪŋ/
Definitions
- (n.) The act or practice of withdrawing more money from a bank account than is available, creating a negative balance.
The bank charged fees for overdrafting his checking account.
Related terms
See also
Commentary
Often governed by specific banking regulations, overdrafting can lead to fees or penalties; clear contract terms are advisable.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.