Find out how to get overdraft fees refunded and how to prevent future charges, so you can save yourself money!
Let’s say you’ve had some extra costs this month and this afternoon, when you tried to pay for something, you ended up spending more money than what you’ve had on your bank account. Then, you find out that you got an overdraft fee charge. So, now you ask yourself “can I get it waived?“. Well, the answer is yes, and we are going to tell you how to get overdraft fees refunded.
Without further ado, let’s talk about your options, that way you’ll know what to do if you ever find yourself in this situation! Also, if you want to check out more financial tips on our website, you can click on this link!
What Is An Overdraft Fee?
It is a penalty charged by financial institutions when a transaction attempts to withdraw more money than what’s available in your checking account balance, forcing the bank to pay the difference – missing amount – for you. These fees can vary depending on your bank or credit union, but the average is $35 per overdraft.
In addition to that, some might also charge daily overdraft fees if you’re account balance remains negative. Keep in mind that, banks can’t charge overdraft fees for one-time debit card transactions or ATM withdrawals unless you’ve opted in. However, they can for checks or electronic payments that would overdraw your account.
How to Get Overdraft Fees Refunded
The good news is, you might be able to get it waived. Though it varies by bank, here’s how you can potentially accomplish it:
- Ask For a Refund: contact your bank’s customer service or visit a branch and request a refund. Explain why you’re asking, like a late deposit or an unexpected large payment. Banks often value loyal and responsible customers, especially those who have rarely or never overdrawn their accounts before, so they might be understanding of your situation;
- Escalate if Needed: if the initial representative can’t help, ask to speak with a supervisor or manager who might have the authority to waive the fee. Stay composed and respectful; it increases your chances of cooperation;
- Consider Switching Banks: if your bank won’t budge, explore other banks. You might find one with friendlier fee policies or even no overdraft fees at all.
Tips
- Act Quickly: the sooner you contact your bank, the better your chances of getting it waived. There are several ways to request for a refund, such as:
- Phone: call your bank’s customer service department and speak to a representative directly;
- In-Person: visit your local branch and speak with a teller or manager;
- Online Chat: many banks offer online chat functionality, or even secure messaging through their online banking platform.
- Highlight Your Loyalty: if you’ve been a long-time customer with a good banking history, mention it;
- Bank Error: if the overdraft resulted from a bank’s mistake, such as a processing error or a miscalculation, they should be more than willing to waive the fee.
How to Avoid Overdraft Fees
- Monitor Your Account Balance Regularly: keep an eye on your checking account balance to avoid unintentional overdrafts. Many banks offer mobile banking apps that make checking your balance a breeze;
- Set Low Balance Alerts: most banks allow you to set up alerts that notify you when your account balance dips below a certain threshold;
- Opt-Out of Overdraft Protection: you can choose to opt out of overdraft protection anytime. This means if there’s not enough money in your account for a transaction, your debit card might get declined, but you won’t face an overdraft fee;
- Link Accounts: link your checking account to a savings account that can automatically transfer funds to cover overdrafts. This can help you avoid overdraft fees, but be mindful of any transfer fees associated;
- Consider Other Banks: some banks and credit unions offer checking accounts that don’t charge overdraft fees, or they offer courtesy refunds more readily.