Rustler
Level 15

Banking

@amit6 

 

over draft is NOT a line of credit as @Charies_M seems to think.

 

Over draft is just the banking paying your check for a fee, when you do not have the funds to cover the amount.  All that happens is that the account balance goes negative, and you add in the fee charged driving it further in the negative.  As you make deposits the bank takes the funds back raising the negative balance closer to zero.