What Is an Overdraft Fee and How to Avoid It

1 An overdraft fee means the bank paid the transaction. An NSF fee means it refused, and charged you anyway.

2 In the US, overdraft fees on debit card and ATM transactions are opt-in, so the default setting is off.

3 Canada capped NSF fees at 10 dollars in March 2026, with no fee at all when the overdraft is under 10 dollars.

4 UK banks can no longer charge more for an unarranged overdraft than an arranged one.

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