Overdraft protection is a service offered by Chase that allows checking account holders to temporarily make purchases with a debit card even if they don’t have sufficient funds in their account to cover them.
In return, the bank makes a short-term loan to the account holder so his/her debit card isn’t declined at the register or an ATM machine.
This can be useful when you are trying to buy something while on low funds, but your paycheck comes in the next day so you can pay off the short-term loan.
This short-term loan’s interest is pretty high; however, if paid off quickly, the interest would be smaller than the bounced check fee.
What it costs:
- No fee to enroll
- Checking Account Overdraft fee
- $34 Overdraft Protection Transfer Fee for each item (max of 3 insufficient funds/returned item fees per day)
- $15 Extended Overdraft Fee for each item your account is overdrawn 5 or more consecutive business days, even if your account is overdrawn by $5 or less
- Chase Premier Platinum Checking account waives the Extended Overdraft Fee. Insufficient Funds and Returned Item Fees are waived if you have had four or fewer Insufficient Funds or Returned Item occurrences in the past 12 months.
Debit Card Coverage
- Debit Card Coverage from Chase allows you to choose whether you want to opt for overdraft protection or not:
- Select No, and your transaction will be declined and you won’t be charged a fee
- Select Yes, and Chase may pay the overdraft transaction at their discretion based on your account history, the deposits you make, and the transaction amount
- If you are enrolled in Overdraft Protection and you have enough money in your linked Overdraft Protection backup account, your transaction will be approved and a transfer will be made.
- Avoid overdrawing your account by transferring money from another account using Chase’s helpful feature, QuickDeposit before the business day ends.
If You Don’t Have a Chase Account…
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Conclusion
Visit Chase Overdraft Protection if you are looking to sign up for their services. This way, when you make a purchase that is higher than your funds, you can avoid the bounced check fee and only get the overdraft protection fee.
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