Yes, you can overdraft a Wells Fargo checking account, but the bank will charge you a fee

Wells Fargo allows your checking account to go negative if you don't have enough money to cover a transaction. When this happens, the bank covers the shortfall and charges you an overdraft fee. As of 2024, Wells Fargo's overdraft fee is $35 per transaction, though this amount can change. You can be charged multiple fees in a single day if several transactions overdraft your account.

The bank does not require you to have overdraft protection turned on to overdraft your account. Overdrafts can happen automatically on debit card purchases, checks, ACH transfers, and other payments. However, Wells Fargo gives you some control over which types of transactions can overdraft your account, and you can choose to decline overdraft coverage for certain transaction types.

Key Takeaways

  • Wells Fargo charges $35 per overdraft transaction, and you can incur multiple fees in one day if several transactions overdraft your account.
  • You do not need to opt into overdraft protection for your account to overdraft—it happens automatically unless you turn it off for specific transaction types.
  • Debit card transactions and ATM withdrawals can be declined if you don't have sufficient funds, but checks and ACH transfers may still overdraft your account.
  • If your account stays negative for more than a certain number of days, Wells Fargo may close your account and report you to ChexSystems, which affects your ability to open accounts elsewhere.
  • You can contact Wells Fargo to request a one-time overdraft fee reversal, though the bank does not may provide approval.

Which transactions can and cannot overdraft your account

Not all transaction types behave the same way at Wells Fargo. Debit card purchases and ATM withdrawals will typically be declined if you don't have enough money in your account—the transaction straightforward won't go through. This is the safest type of transaction because you cannot overdraft on it unless you have overdraft protection specifically enabled for debit cards.

Checks, ACH transfers, and automatic bill payments can overdraft your account even without overdraft protection turned on. These transactions are processed differently because they are not real-time. The bank honors the payment first and then charges you an overdraft fee if your balance goes negative. This is why checks and recurring payments can catch you off guard—you may not realize your balance is too low until after the transaction has already cleared.

You can control overdraft coverage by logging into your Wells Fargo account online or calling customer service at 1-800-869-3557. The bank allows you to turn overdraft protection on or off for different transaction categories. If you turn it off for a category, transactions in that category will be declined instead of overdrafting your account.

How overdraft fees stack up and when they stop

Wells Fargo charges one $35 overdraft fee per transaction that overdrafts your account. If you have five transactions that overdraft on the same day, you will be charged five separate $35 fees—a total of $175. The bank does not cap the number of overdraft fees you can incur in a single day, though most banks do limit fees to three or four per day.

If your account remains negative for more than a certain number of consecutive days, Wells Fargo will close your account. The exact number of days varies, but accounts that stay overdrawn for 30 days or longer are at risk of closure. Once your account is closed for overdraft abuse, the bank reports your name to ChexSystems, a banking history database. This report makes it difficult to open a checking account at other banks for up to five years.

To avoid this outcome, bring your account back to a positive balance as soon as possible. If you cannot pay the full amount when ready, contact Wells Fargo and explain your situation. The bank sometimes works with customers on payment plans, though this is not may provide.

Requesting an overdraft fee reversal

Wells Fargo does not automatically reverse overdraft fees, but you can request a reversal by contacting the bank directly. Call 1-800-869-3557 or visit a branch in person. Explain why the overdraft occurred and ask if the bank will reverse the fee as a one-time courtesy. The bank is more likely to approve a reversal if this is your first overdraft or if the overdraft was caused by a bank error.

Wells Fargo keeps a record of your overdraft history. If you have requested reversals before, the bank may deny your request or offer to reverse only one of multiple fees. There is no harm in asking, but do not expect the bank to reverse fees automatically or repeatedly. If you are denied, you can escalate your request to a supervisor, though the outcome is unlikely to change.

The difference between overdraft protection and overdraft coverage

These terms are sometimes used interchangeably, but they mean different things at Wells Fargo. Overdraft protection is a service that links your checking account to another account (usually a savings account or credit line) and automatically transfers money to cover a shortfall. If you have overdraft protection set up, the bank transfers funds from your linked account instead of charging an overdraft fee. This service is optional and must be turned on deliberately.

Overdraft coverage is the bank's automatic permission to overdraft your account and be charged a fee. This happens by default on most transaction types unless you turn it off. Overdraft protection prevents overdrafts from happening in the first place by moving money automatically. Overdraft coverage allows overdrafts to happen and charges you for them. If you want to avoid overdraft fees entirely, overdraft protection is the better option—but it requires you to have a linked account with available funds.

What happens if you ignore an overdrawn account

Ignoring an overdrawn account will not make the problem go away. Wells Fargo will continue to charge overdraft fees for any new transactions that overdraft your account, and the bank will eventually close your account if the balance stays negative for too long. Once your account is closed, you will owe the bank the full negative balance plus all accumulated overdraft fees.

If you do not pay what you owe, Wells Fargo may send your debt to a collection agency. The collection agency will contact you by phone and mail, and if you still do not pay, they may file a lawsuit against you. A judgment against you can result in wage garnishment or a bank levy on any future accounts you open. This is why it is important to address an overdrawn account as soon as possible, even if you can only pay part of what you owe.

If you are struggling to bring your account positive, contact Wells Fargo before the situation escalates. The bank may be willing to work with you on a payment plan or reverse some fees if you demonstrate a genuine effort to resolve the issue.

Frequently Asked Questions

Can Wells Fargo overdraft my account without my permission?

Yes. Overdraft coverage is turned on by default for most transaction types at Wells Fargo. You do not need to opt in or sign anything—the bank will overdraft your account and charge you a fee unless you specifically turn off overdraft coverage for that transaction type. Debit card transactions are an exception; those are usually declined rather than overdrafted unless you have overdraft protection enabled.

How long does it take for an overdraft fee to show up on my account?

Overdraft fees typically appear on your account within one to three business days of the transaction that caused the overdraft. The exact timing depends on when the transaction clears and when Wells Fargo processes fees. You may not see the fee when ready, so check your account balance regularly to catch overdrafts early.

What is the difference between an overdraft and a returned transaction?

An overdraft means the bank covered the transaction and charged you a fee. A returned transaction means the bank declined the transaction and it did not go through. With overdraft coverage on, transactions overdraft your account. With overdraft coverage off, transactions are returned. Returned transactions may also trigger a fee at some merchants, so turning off overdraft coverage does not always prevent fees entirely.

Can I set up overdraft protection if I only have a checking account?

No. Overdraft protection requires a linked account to transfer money from—usually a Wells Fargo savings account or credit line. If you only have a checking account, you cannot set up overdraft protection. Your only option is to turn off overdraft coverage and have transactions declined instead, or to open a savings account and link it to your checking account.

Will overdrafting my Wells Fargo account affect my credit score?

Overdrafting your account alone does not directly affect your credit score because checking account activity is not reported to credit bureaus. However, if you ignore the overdrawn balance and Wells Fargo sends your debt to a collection agency, that collection account will appear on your credit report and damage your score. This is why paying off an overdraft quickly is important.