what is courtesy pay for a debit card?
In: Economics
It’s also called “Overdraft Protection”.
Let’s say you only have $1000 but rent is $1200, this will let you pay your landlord but go negative by $200, you however will be charged a fee to do so (as the bank did give you a mini-loan essentially). The alternative is you cannot go negative but then you can’t pay rent on time.
Banks also used to have a Nonsufficient Funds (NSF) fee, which would not only not let you go $200 negative, but would also charge you a fee for not having enough to make the transaction clear (so a fee for wasting the bank’s time). Most all banks have gotten rid of this fee though.
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