Chase charges a $34 fee through their insufficient funds policy. Find out how to use to their overdraft protection services to avoid fees.

The best way to avoid overdraft fees is signing up for Chase overdraft protection. Enrolling in this program will prompt Chase to transfer money from your savings to cover an overdraft in your checking balance.

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What is an Overdraft?

An overdraft occurs when you don’t have sufficient funds in your account to pay for a purchase, check or payment. As a result, you bank or credit union pays for the transaction for you. In this case, many banks or credit unions will charge a fee for covering the transaction in addition to the overdraft amount that you must pay back.

For example, you can overdraw in ATM transactions, automatic bill payments, and electronic or in-person withdrawals.

The fee for overdraft protection varies at every bank or credit union. You should research a bank’s overdraft policy before signing up for a checking account. Overdraft fees are among the biggest and most frustrating charges for banking customers.

Overdraft Services

Chase overs two main overdraft services to assist their checking account holders: overdraft protection and debit card coverage.

1. Overdraft Protection

Chase’s overdraft protection feature allows account holders to link Chase savings account to your checking account. In the case that your checking account doesn’t have enough funds to cover the purchase, you can transfer funds from your savings account to cover it.

This service covers all transactions, including everyday debit card transactions. However, when there isn’t enough money in your linked Chase savings account then you’ll be charged an overdraft fee.

How to set up Chase overdraft protection on Chase Mobile App:

Sign in to your Chase Mobile ® App
Select the checking account you want to have Overdraft Protection
Swipe up to view the rest of the page
Select Overdraft protection
Select Choose account
Choose the savings account as the Overdraft Protection backup account for your checking account
Select Done
Review the Overdraft Protection Service Terms & Conditions and select your agreement
Select Update protection

2. Debit Card Coverage

Chase offers Debit Card Coverage for everyday debit card transactions. If you’re purchasing an item and you don’t have enough funds in your account, you can choose “Yes” or “No.”

Select “No” – the purchase will be declined and you won’t be charged a fee
Select “Yes” – Chase may cover this transaction and charge a fee. This fee will vary based on your account history, deposits you make and transaction amount

This service only covers everyday debit card transactions (such as groceries, gasoline or dining out).

How to set up debit card coverage on Chase Mobile App:

Sign in to your Chase Mobile ® App
Select the checking account you want to have Debit Card Coverage
Swipe up to view the rest of the page
Select Debit card coverage
Review the Chase debit card coverage Terms & Conditions and select your agreement
Choose Coverage selection
Select Update coverage

Chase’s overdraft protection is noted to be more simple than their debit card coverage service.

Overdraft Fees

There are checking account fees if you incur an overdraft fee:

$34 Insufficient Funds Fee per item
$34 Returned Item Fee per check automatic payment
If a merchant submits the same check or automatic payment multiple times, it may result in both a Returned Item Fee and Insufficient Funds Fee. If Chase returns one of these items, they’ll charge you one Returned Item Fee for that item within a 30-day period.
Maximum of three fees per day (total of $102)

Overdraft fees can be avoided, simply deposit or transfer funds into your account to cover the payment before the business day ends. Here are the cutoff times:

At a branch, before it closes
At an ATM, before 11PM ET / 8PM PT
On Chase.com or the Chase Mobile ® app or use Chase QuickPay®, before 11PM ET / 8PM PT

Chase Overdraft Forgiveness

You can try to negotiate overdraft fee refunds via the Secure Message Center on the Chase website or by calling customer service (1-800-935-9935). If it’s your first time, they will likely give you a free pass.

While there are no fees to enroll in Overdraft Protection or Debit Card Coverage, Overdraft Protection has fewer potential fees.

Bottom Line

Once you’ve opened a Chase bank account, you should sign up for overdraft protection. The process is fairly simple and helps to avoid headaches and unnecessary fees. If you do not have a checking account with Chase yet, feel free to take a look at the current Chase coupon promotions.