Overdraft Fee

Overdraft fee is the fee which banks charge the consumers when they use the debit card for an amount which is more than the amount present in the checking account. It’s like a check bounce fee which is banks charge when you go to bank with a paper check and your account has the lesser amount. Last year Americans paid an overdraft fee of $35 billion which is too high. Federal rules could cut the amount down. They make banks ask the consumer to opt if he wants to pay the overdraft or not. Earlier banks used to send no notification and a fee was charged. Some banks charge a fee as high as $35 per overdraft.
Not all the banks charge the overdraft fee. It depends on the issuer of the card, features of the card, nature of transaction. You should read all the terms and conditions when you apply for the card. NEXCEL educates their customers at the time of application and we don’t charge any hidden fees.