An overdraft occurs when a transaction is made and you do not have enough money in your account to cover the transaction. When this happens you may be charged an overdraft fee. There are two types of standard overdraft fees depending on whether or not the transaction is paid into overdraft.
Overdraft fees vary by bank. At BBVA Compass, you may be charged an NSF Paid Item fee of $38 ($32 in CA) each time we pay a transaction into overdraft, and an NSF Returned Item fee of $38 ($32 in CA) each time we return an item due to insufficient funds. There is a maximum of six (6) NSF fees that can be charged per calendar day to your consumer account.
In addition, if your account becomes overdrawn and remains overdrawn by more than $1.00 for ten (10) consecutive calendar days, an Extended Overdraft Service Charge of $25 will be charged. An additional $25 Extended Overdraft Service Charge will be charged if the account remains overdrawn by more than $1.00 for twenty (20) consecutive calendar days.
Similarly, NSF fees vary by bank, but can be equally as costly as overdraft fees. Also, if your item, such as a check, is returned to the business you wrote the check to, the business also has the right to charge you a returned check fee.
Specifics about the fees on your checking account were included in the account agreement you received when you opened your account.