Re: Question from a Murican...
In Overdraft protection is a scan am its garbage.
In most of the rest of the world overdraft is a credit facility you apply for like you would a credit card. It allows you to over draw your checking account up to a certain level. So with a $10k overdraft you can have a negative balance up to $10K and the bank charges an interest on it like any other loan.
Usually you are not able to draw above that balance.
Here in the USoA you pay for overdraft protection only because the banks are scamming us. Instead of denying transactions as NSF they charge us for an overdraft on a per transaction basis and also charge us for overdraft protection, a small fee to transfer funds from our savings account to our checking account to prevent the checking from going into OD.
A few years ago before the feds cracked down on them the banks would order our transactions to maximize the overdraft fees. If a $1 transaction today causes our account to go into overdraft. Their system would reorder the processing of the transactions so that the largest transaction that is pending is processed first. A lager transaction 48 hours ago that is processed before a $1 cent transaction today so that all the transaction for the past 48 hours incur overdraft fees. At $35 per transaction this amounted to charges of over $20Billion.