overdraft
noun
over·draft
ˈō-vər-ˌdraft 
1
: an act of overdrawing at a bank : the state of being overdrawn
also
: the sum overdrawn
2
Examples of overdraft in a Sentence
Recent Examples on the Web
Under Biden's administration, the agency issued and enforced regulations to cap overdraft fees and remove medical bills from credit reports.
—
Brittney Melton, NPR, 10 Feb. 2025
Chopra, who was appointed by former President Joe Biden in 2021, was often at loggerheads with the U.S. banking industry after pushing to drastically rein in practices around credit card late fees and overdraft fees, among many other efforts.
—Hugh Son, CNBC, 3 Feb. 2025
But bank industry leaders warn that the cap could backfire on the most vulnerable bank customers, who rely on overdraft protection to keep them solvent.
—Daniel De Visé, USA TODAY, 22 Jan. 2025
The rule, unveiled Thursday, would cap overdraft fees at $5 — a substantial savings from the $35 that customers are typically charged.
—Alexandra Banner, CNN, 13 Dec. 2024
See all Example Sentences for overdraft 
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Brittney Melton, NPR, 10 Feb. 2025
Chopra, who was appointed by former President Joe Biden in 2021, was often at loggerheads with the U.S. banking industry after pushing to drastically rein in practices around credit card late fees and overdraft fees, among many other efforts.
—Hugh Son, CNBC, 3 Feb. 2025
But bank industry leaders warn that the cap could backfire on the most vulnerable bank customers, who rely on overdraft protection to keep them solvent.
—Daniel De Visé, USA TODAY, 22 Jan. 2025
The rule, unveiled Thursday, would cap overdraft fees at $5 — a substantial savings from the $35 that customers are typically charged.
—Alexandra Banner, CNN, 13 Dec. 2024
See all Example Sentences for overdraft
Dictionary Entries Near overdraft
Cite this Entry
“Overdraft.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/overdraft. Accessed 16 Feb. 2025.
Copy CitationKids Definition
overdraft
noun
over·draft
ˈō-vər-ˌdraft
: an overdrawing of a bank account or the amount overdrawn
Legal Definition
overdraft
noun
over·draft
ˈō-vər-ˌdraft
1
: the act or result of drawing on a bank account for more than the balance
also
: the amount exceeding the balance in an overdraft
2
: a loan or credit extended on a current account especially to established or institutional customers
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