Chase will charge you an overdraft fee, usually $35, each time your account balance drops below zero

When you spend more money than you have in your Chase checking account, the bank covers the difference temporarily. This is called an overdraft. Chase then charges you a fee — typically $35 per transaction that overdraws your account — though this amount can vary by account type and region. The fee appears as a separate charge on your statement.

You have a limited window to fix this. Chase gives you until the end of the business day to bring your account back to a positive balance. If you do, you avoid the overdraft fee. If you don't, the fee posts to your account, making your negative balance even deeper.

The overdraft itself is not a loan you have to repay with interest. You straightforward owe the bank the amount you overspent, plus the fee. However, if your account stays negative for too long, additional fees can pile up, and Chase may eventually close your account.

Key Takeaways

  • Chase charges $35 per overdraft transaction, though you can avoid the fee if you deposit money before the end of the business day.
  • Multiple overdrafts in a short period can result in multiple $35 fees stacking on top of each other.
  • If your account stays negative for more than a few days, Chase may charge additional fees and eventually close your account.
  • You can turn off overdraft protection to prevent overdrafts entirely, though this means transactions will be declined instead.
  • Chase offers a courtesy overdraft buffer on some accounts, which covers small overages without a fee up to a certain limit.

How multiple overdrafts add up quickly

If you make several purchases while your account is overdrawn, Chase charges a separate $35 fee for each one. This is where overdraft fees become expensive fast. A single day of spending while negative can result in three or four fees, totaling $105 to $140.

Chase also limits how many overdraft fees you'll pay in a single day. The bank typically caps overdraft fees at around $105 to $140 per day (three to four fees), though this varies. However, this daily cap does not prevent fees from accumulating across multiple days.

The order in which Chase processes your transactions also matters. The bank typically processes larger transactions before smaller ones, even if you made the smaller purchase first. This can trigger more overdraft fees than you expected. For example, if you have $50 in your account and make a $10 purchase followed by a $100 purchase, Chase may process the $100 first, overdrawing your account and charging a fee for both transactions.

What happens if your account stays negative

If you don't deposit money to cover the overdraft within a few days, Chase begins charging additional fees. After about five business days, the bank charges a second fee called an extended overdraft fee, usually $35. This fee repeats every five business days your account remains negative.

If your account stays negative for 60 days or longer, Chase may close it without warning. The bank will send you a notice, but you have limited time to settle the debt before the account is closed. Once closed, the negative balance is reported to ChexSystems, a banking history database that other banks use to decide whether to open accounts for you.

A closed account due to overdraft can make it difficult to open a new checking account elsewhere for several years. Some banks will not open accounts for people with recent ChexSystems reports, and those with reports stay on file for up to five years.

How to stop an overdraft before it happens

The simplest way to prevent overdrafts is to turn off overdraft protection. This is a setting in your Chase account that you control. When overdraft protection is off, Chase declines transactions that would overdraw your account instead of covering them. You'll get a declined message at the register or online, but you won't owe a fee.

To turn off overdraft protection, log into your Chase account online or call Chase customer service at the number on the back of your debit card. Ask to disable overdraft protection on your checking account. This takes effect when ready.

Another option is to link a savings account or credit card to your checking account as a backup. If your checking account would overdraw, Chase transfers money from the linked account to cover it. This usually costs $10 per transfer, which is less than an overdraft fee, but you need to have money in the backup account for it to work.

Chase's overdraft courtesy buffer

Some Chase checking accounts include an overdraft courtesy buffer, which covers small overages without charging a fee. The buffer amount varies by account type — typically $50 to $100 — and is not may provide. Chase can remove this courtesy at any time.

The courtesy buffer is not overdraft protection. It straightforward means Chase won't charge a fee if you go slightly negative, as long as you bring the account back to positive quickly. If you exceed the buffer amount, you pay the full $35 fee. The buffer also does not explore if you have a history of overdrafts.

You should not rely on the courtesy buffer as a safety net. It is a temporary courtesy, not a promise, and Chase can revoke it without notice. The safest approach is to keep your account above zero and turn off overdraft protection.

Recovering from overdraft fees

If you've been charged overdraft fees, you can ask Chase to reverse them. Call the customer service number on the back of your debit card and explain your situation. Chase is more likely to reverse one or two fees if you have a good account history and this is your first time asking. If you ask repeatedly or have many overdrafts, the bank is less likely to help.

Be honest about what happened. If you made a mistake or had an unexpected expense, say so. If you've had overdraft fees reversed before, mention that you're working to prevent it from happening again. Chase customer service representatives have some authority to reverse fees as a one-time courtesy.

If the bank refuses, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), which oversees bank practices. The CFPB does not reverse fees directly, but complaints are tracked and can lead to action against the bank if a pattern emerges.

Frequently Asked Questions

Can Chase take money from my savings account to cover an overdraft?

Only if you've linked your savings account to your checking account as overdraft protection. If you haven't set this up, Chase cannot touch your savings. If you have set it up, Chase transfers money automatically when your checking account would overdraw, usually charging $10 per transfer.

Will an overdraft hurt my credit score?

An overdraft itself does not appear on your credit report and does not hurt your credit score. However, if your account is sent to a collection agency because you don't pay the negative balance, that can damage your credit. This typically happens only if your account stays negative for several months.

What's the difference between an overdraft and a bounced check?

An overdraft means Chase covered the transaction and charged you a fee. A bounced check means the check was declined because you didn't have enough money. If overdraft protection is on, checks are covered (overdraft). If it's off, checks bounce. Bounced checks can also trigger fees from the merchant or payee.

How long does an overdraft stay on my ChexSystems record?

If your account is closed due to overdraft, the negative balance is reported to ChexSystems and stays on file for up to five years. After five years, it falls off and no longer affects your ability to open new accounts. Some banks may still see it if they check older records, but most rely on the five-year window.

Can I get my account reopened after Chase closes it for overdraft?

Chase may reopen your account if you pay the negative balance and wait several months. However, the bank is not required to reopen it. Your best option is to pay what you owe as soon as possible and then open an account at a different bank that specializes in second-chance checking.