What exactly is the OVERDRAFT* charge on my bank statement?

The OVERDRAFT* charge is a fee assessed by your bank — classified as an Overdraft Fee — when a transaction causes your account balance to go negative and the bank covers the payment on your behalf.

Why does the charge say OVERDRAFT* instead of the full bank name?

Banks often use abbreviated or truncated descriptors on statements. OVERDRAFT* is a shortened billing label your financial institution uses to identify the Overdraft Fee line item within their internal processing system.

Can I get a refund on the OVERDRAFT* Overdraft Fee?

Yes — many banks will waive an Overdraft Fee once per year as a courtesy, especially for long-standing customers. Contact your bank directly and politely request a refund of the OVERDRAFT* charge, citing your account history.

How do I stop my bank from charging future Overdraft Fees?

You can opt out of overdraft coverage for debit card transactions, link a backup funding source, or maintain a buffer balance. Ask your bank to remove standard Overdraft Fee enrollment so future low-balance transactions are simply declined instead.

How do I stop future OVERDRAFT* charges from appearing?

Maintain a minimum buffer in your account, enable real-time balance alerts, and schedule automatic transfers from savings when your balance drops low. These steps prevent the conditions that trigger the OVERDRAFT* Overdraft Fee in the first place.

Home›Browse Charges›Banking›OVERDRAFT*

OVERDRAFT* Charge (What It Is + Is It Legit?)

⚠ Suspicious

The "OVERDRAFT*" charge is from Overdraft Fee. Bank overdraft fee charge.

🌍 US🕐 8 min read📅 Updated May 22, 2026

Overdraft Fee

Bank overdraft fee charge.

OVERDRAFT*

Why this shows on your statement

When your bank assesses a fee for spending beyond your available balance, the charge is logged in their internal transaction system under the shorthand descriptor "OVERDRAFT*" rather than spelling out the full label "Overdraft Fee" on your statement. Banks use truncated billing descriptors like this because core banking platforms, including those built on legacy mainframe systems, have strict character limits for transaction descriptions, forcing them to abbreviate entries. The asterisk following "OVERDRAFT*" is a common placeholder used by U.S. banking systems to indicate a fee classification code or account modifier was appended in the original transaction record.

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What should you do?

Review Your Transaction History

Log into your bank account and carefully review your recent transaction history to determine if the OVERDRAFT* charge from Overdraft Fee aligns with any account activity that may have triggered an overdraft. Look for transactions that exceeded your available balance around the same date the charge appeared.

Contact Your Bank Directly

Call the customer service number on the back of your bank card and ask them to explain the specific OVERDRAFT* charge in detail. Request clarification on which transaction triggered it, as overdraft fees from Overdraft Fee can sometimes be applied in error or without your knowledge of the triggering event.

Dispute the OVERDRAFT* Charge

If you do not recognize what caused the OVERDRAFT* charge or believe it was applied incorrectly, formally dispute the charge with your bank. Ask to speak with a fraud or billing specialist and request a written explanation or reversal of the Overdraft Fee charge, as banks are sometimes willing to waive first-time or questionable overdraft fees.

Protect Your Account Going Forward

After addressing the suspicious OVERDRAFT* charge, consider setting up low balance alerts, linking a backup account, or opting out of overdraft coverage through your bank so that future Overdraft Fee charges cannot be applied without your explicit consent. Visit google.com to research your bank's specific overdraft protection policies and your rights as a consumer.

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Should you be worried?

This charge has been flagged as suspicious. If you did not authorize this charge, contact your bank immediately and file a dispute.

Is the OVERDRAFT* Charge Legitimate or Fraud?

The OVERDRAFT* charge appearing on your bank statement is typically a legitimate fee assessed by your bank or financial institution under the category of Overdraft Fee. This charge occurs when a transaction causes your account balance to drop below zero and your bank covers the shortfall on your behalf. However, it's worth verifying the charge since unauthorized account access or billing errors can sometimes produce unexpected fees.

Your account balance fell below $0 and the bank paid a pending transaction anyway
You have an overdraft protection service enabled that triggered automatically
A scheduled or recurring payment posted when insufficient funds were available
A hold or pending transaction reduced your available balance below the required threshold

How to Verify the OVERDRAFT* Charge

1
Check your account transaction history
Log into your online banking or mobile app and look for a transaction dated the same day as the OVERDRAFT* charge. The triggering transaction — such as a debit card purchase or ACH payment — should appear just before the Overdraft Fee entry.
2
Search your email for bank notifications
Look for automated alert emails or text messages from your bank warning that your balance was low or that an Overdraft Fee was assessed. Most banks send these notifications at the time the OVERDRAFT* charge is applied.
3
Check with household members
If others share your account or have a linked debit card, ask whether they made a purchase that may have exceeded the available balance, triggering the OVERDRAFT* charge without your direct knowledge.
4
Review any scheduled or recurring payments
Check your list of automatic bill payments, subscriptions, or loan installments. A recurring charge posting on an unexpected date is a common cause of the OVERDRAFT* Overdraft Fee appearing on your statement.
5
Contact your bank directly
Call the number on the back of your debit card or visit a branch and ask a representative to identify exactly which transaction triggered the OVERDRAFT* charge and confirm the Overdraft Fee amount and date.

How to Dispute an OVERDRAFT* Charge

1
Act within 60 days of the statement date
Federal Regulation E gives you 60 days from the statement date to formally dispute an erroneous OVERDRAFT* charge. Acting quickly improves your chances of a full refund of the Overdraft Fee.
2
Contact your bank's Overdraft Fee department first
Call or visit your bank and politely explain why you believe the OVERDRAFT* charge was applied in error — for example, if funds were available or a deposit was pending. Many banks will waive a first-time Overdraft Fee as a courtesy.
3
Submit a formal written dispute
If a phone call doesn't resolve the issue, submit a written dispute through your bank's secure message center or by certified mail. Reference the exact OVERDRAFT* charge amount, date, and the transaction you believe triggered it incorrectly.
4
Escalate to the CFPB if unresolved
If your bank refuses to reverse an unjustified OVERDRAFT* Overdraft Fee, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. This often prompts a faster resolution from your financial institution.

Tips for Managing Overdraft Fee Charges

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Set low-balance alerts in your banking app so you're warned before an OVERDRAFT* fee is triggered.

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Review your bank's Overdraft Fee schedule so you know exactly how much each OVERDRAFT* charge will cost.

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Link a savings account or credit card as overdraft protection to avoid the standard Overdraft Fee entirely.

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Align recurring bill payment dates with your paycheck deposit date to prevent low-balance OVERDRAFT* situations.

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Opt out of debit card overdraft coverage if you prefer declined transactions over paying an Overdraft Fee.

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Use WhatIsThisCharge.net to identify related charges and confirm whether an OVERDRAFT* line is from your bank.

ℹ️ Note

The OVERDRAFT* charge is most commonly a legitimate Overdraft Fee applied by your bank when a payment posted while your balance was insufficient — not fraud. In many cases, a single phone call to your bank is all it takes to understand or even reverse the charge.