overdraft

noun

over·​draft ˈō-vər-ˌdraft How to pronounce overdraft (audio)
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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Among other things, the agency proposes rules, like recent ones reining in excessive credit card and overdraft fees. Nicole Fallert, USA TODAY, 13 Jan. 2025 These platforms allow lenders to access a business’s banking transaction history, giving them timely insights into cash flow, deposit frequency and even overdraft or nonsufficient funds (NSF) occurrences. Lechi (richard) Zhang, Forbes, 20 Dec. 2024 Last week the Consumer Financial Protection Bureau announced a final rule to curb bank overdraft fees. Elizabeth Schulze, ABC News, 17 Dec. 2024 And earlier this month issued landmark rules that could lower the costs of bank overdrafts to as little as $5. Laurence Darmiento, Los Angeles Times, 24 Dec. 2024 See all Example Sentences for overdraft 

Word History

First Known Use

1812, in the meaning defined at sense 1

Time Traveler
The first known use of overdraft was in 1812

Dictionary Entries Near overdraft

Cite this Entry

“Overdraft.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/overdraft. Accessed 20 Jan. 2025.

Kids Definition

overdraft

noun
over·​draft ˈō-vər-ˌdraft How to pronounce overdraft (audio)
: an overdrawing of a bank account or the amount overdrawn

Legal Definition

overdraft

noun
over·​draft ˈō-vər-ˌdraft How to pronounce overdraft (audio)
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

More from Merriam-Webster on overdraft

Last Updated: - Updated example sentences
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