Business / Taxes / Overdraft: An overdraft is a withdrawal from a bank account that exceeds the funds you have available. If you overdraw your account and you have overdraft protection, the bank will transfer money up to the limit on your line of credit to your account to cover the withdrawal. Although you will pay interest on the amount the bank transfers to your account from your line of credit, it is likely to be less than the substantial fees you pay for each overdraft.
Business / Accounting / Overdraft Protection: Procedure agreed upon by an account holder and a bank in advance to transfer funds from a savings or credit account to a checking account to cover insufficient funds. MORE
Business / Taxes / Insufficient Funds: If you don’t have enough money available in your checking account to cover the checks you’ve written or electronic debits you’ve authorized, you have insufficient funds (ISF) or nonsufficient fu MORE