overdraft

American  

[oh-ver-draft, -drahft] / ˈoʊ vərˌdræft, -ˌdrɑft /

noun

1. an act or instance of overdrawing a checking account.

2. a check overdrawn on a checking account.

3. the amount overdrawn.

4. an excessive drawing on or drawing off of something.

5. a draft made to pass over a fire, as in a furnace.

6. a draft passing downward through a kiln.

7. Metalworking. a tendency of a rolled piece to curve upward after passing through a stand, occurring when the lower roll is faster than the upper.

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overdraft British  

/ ˈəʊvəˌdrɑːft /

noun

1. a draft or withdrawal of money in excess of the credit balance on a bank or building-society cheque account

2. the amount of money drawn or withdrawn thus

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overdraft Cultural  

1. The amount by which a check exceeds the funds on deposit to cover it.

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Etymology

Origin of overdraft

First recorded in 1875–80; over- + draft

Example Sentences

When credit options contract, households are forced to turn to riskier alternatives with higher overdraft and late fees and less transparent pricing.

From Barron's

But many of these services automatically draft payments from customer bank accounts, which can result in overdraft fees.

From The Wall Street Journal

One resolution repealed an overdraft lending rule from the Consumer Financial Protection Bureau that reduced credit for low-income Americans.

From The Wall Street Journal

One victim was left hospitalised with stress after their finances were "destroyed" when loans, credit agreements and overdrafts were taken out using their name.

From BBC

The mysterious addressee was then sent seven letters, a bank card, a PIN, overdraft limit warnings and a warning that an outstanding debt could be referred to a credit reference agency.

From BBC

Related Words

• default
• disaster
• failure
• insolvency
• liquidation
• loss