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overdraft definition - finance
Credit issued by a bank if a check is written on an account that does not have sufficient money to cover it and the bank chooses to approve the check. Often banks link a customerÂ’s savings account or credit card to the checking account to cover overdrafts, and an overdraft fee will be charged.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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