Wells Fargo charges you a fee and may decline the transaction
When you try to spend more money than you have in your Wells Fargo checking account, one of two things happens. Wells Fargo may pay the transaction and charge you an overdraft fee — currently $35 per transaction as of 2024, though this can change. Or Wells Fargo may decline the transaction, and you will not be charged a fee for that specific attempt.
Which outcome you get depends on whether you have overdraft protection turned on, what type of transaction it is, and Wells Fargo's internal rules about which transactions they will cover. A single overdraft event can trigger multiple fees if several transactions post on the same day, because each one is counted separately.
The fee hits your account when ready, making your balance even more negative. If you do not deposit money to cover the overdraft within a set time, Wells Fargo may close your account or refer you to a collections agency.
Key Takeaways
- Wells Fargo charges $35 per overdraft transaction if they pay it, and the fee posts to your account the same day or next business day.
- Debit card purchases and ATM withdrawals can be declined to prevent overdrafts, but checks and automatic bill payments often post even if you do not have the funds.
- You can turn off overdraft protection in your Wells Fargo online account settings to stop Wells Fargo from covering transactions when your balance is negative.
- If your account stays overdrawn for more than a few business days, Wells Fargo may freeze your account or send it to collections, making it harder to open accounts elsewhere.
- Overdraft fees can stack up quickly — if five transactions post on the same day while your account is negative, you could owe $175 in fees alone.
How overdraft fees work at Wells Fargo
When you overdraft, Wells Fargo charges $35 per transaction that they pay on your behalf. This is not a single daily fee — it is one fee per transaction. If you have five transactions post while your account is overdrawn, you owe five fees: $175 total.
The fee appears in your account within one business day. Your balance becomes even more negative. For example, if you have $50 in your account and a $100 debit card purchase posts, your balance drops to -$50. Wells Fargo charges $35, bringing your balance to -$85.
Wells Fargo also charges a fee if your account stays overdrawn for more than five consecutive business days. This is called an extended overdraft fee, and it is $35 as well. You can owe both the transaction overdraft fee and the extended overdraft fee on the same account.
Which transactions can overdraft and which cannot
Not every type of payment can overdraft your account. Debit card purchases and ATM withdrawals are the easiest to decline — Wells Fargo can stop these at the point of sale if you do not have the funds. Many debit card transactions will be declined rather than overdrafted, though this is not may provide.
Checks, automatic bill payments, and ACH transfers (electronic transfers to other banks) are harder to decline because they do not process in real time. These transactions often post to your account hours or even days after you initiate them. By the time Wells Fargo processes them, your balance may have changed. If your balance is negative when they post, Wells Fargo will usually pay them and charge you an overdraft fee.
Wire transfers and some recurring payments may also overdraft your account. The key difference is timing: if Wells Fargo can see the transaction before it posts, they can decline it. If the transaction has already been submitted to the system, they usually pay it and charge a fee.
Overdraft protection versus overdraft fees
Wells Fargo offers overdraft protection, which is different from overdraft fees. Overdraft protection means you link your checking account to another account — usually a savings account or credit line — and Wells Fargo automatically transfers money from that account if your checking balance goes negative.
If you have overdraft protection set up, Wells Fargo will transfer money from your linked account instead of charging an overdraft fee. You may be charged a transfer fee instead, which is usually smaller than an overdraft fee, or no fee at all depending on your account type. This is optional, and you can turn it on or off in your Wells Fargo online account settings.
If you do not have overdraft protection and you do not want Wells Fargo to pay overdrafts, you can also opt out of overdraft coverage entirely. This means Wells Fargo will decline transactions rather than pay them and charge fees. You will not overdraft, but your debit card or check may be declined at the point of sale.
What happens to your account if you stay overdrawn
If your account stays overdrawn for a few days, nothing happens beyond the fees. You can deposit money at any time to bring your balance positive again, and the overdraft is resolved.
If your account stays overdrawn for more than five business days, Wells Fargo charges the extended overdraft fee ($35) in addition to any transaction fees you have already incurred. If it stays negative for longer — typically 30 to 60 days depending on the account — Wells Fargo may freeze your account, meaning you cannot make new transactions even if you deposit money.
If the overdraft is not resolved within 60 to 90 days, Wells Fargo may close your account and refer the debt to a collections agency. This appears on your banking history and can make it difficult to open a checking account at another bank. Some banks use ChexSystems, a banking history report, and a closed account due to overdraft will show up there.
How to stop overdrafts before they happen
The simplest way to prevent overdrafts is to keep a buffer in your checking account — money you do not spend. Many people keep $100 to $300 as a cushion so that small mistakes do not trigger fees.
You can also set up low-balance alerts in your Wells Fargo online account. Go to your account settings and choose to receive an email or text message when your balance drops below a certain amount. This gives you time to deposit money before a transaction posts.
If you use automatic bill payments, make sure you know when they post and how much they are. Unexpected timing or amount changes are a common cause of overdrafts. You can also space out your bill payments so they do not all post on the same day.
Turning off overdraft protection for debit card transactions is another option. This means your card will be declined if you do not have the funds, but you will not be charged a fee. You can still overdraft on checks and automatic payments, but you will reduce the number of overdraft fees you can incur.
Recovering from an overdraft
If you have already overdrafted, deposit money to cover the negative balance as soon as you can. Your balance will return to zero or positive, and the overdraft is resolved. The fees you were charged do not disappear — they are part of the debt you owe.
If you have been charged multiple overdraft fees and believe some were unfair, you can contact Wells Fargo and ask them to reverse one or more fees. Wells Fargo does not have to agree, but they sometimes will if you have a good account history or if the overdraft was caused by a system error on their end. Call the number on the back of your debit card or log into your online account to find the customer service number.
If your account has been closed due to overdraft, you will need to resolve the debt before you can open a new Wells Fargo account. You can pay the balance in full, set up a payment plan, or dispute charges you believe were incorrect. Once the account is settled, the closed status will eventually age off your ChexSystems report, usually after five years.
Frequently Asked Questions
Can Wells Fargo charge me more than one overdraft fee per day?
Yes. Wells Fargo charges one $35 fee per transaction that overdrafts, not one fee per day. If five transactions post on the same day while your account is negative, you owe five fees. They also charge a separate extended overdraft fee if your account stays negative for more than five business days.
Will my debit card be declined or will it overdraft?
It depends. Wells Fargo can decline debit card transactions to prevent overdrafts, but they are not required to. Some transactions will be declined, and others will overdraft. Checks and automatic payments are more likely to overdraft because they post after you initiate them.
How long do I have to pay back an overdraft?
You can pay it back at any time. However, if your account stays overdrawn for more than five business days, you will be charged an extended overdraft fee. If it stays negative for 60 to 90 days, Wells Fargo may freeze or close your account and refer the debt to collections.
Can I turn off overdraft protection?
Yes. You can opt out of overdraft coverage in your Wells Fargo online account settings. This means Wells Fargo will decline transactions instead of paying them and charging fees. You can also set up overdraft protection to transfer money from a linked account instead of charging a fee.
Will an overdraft hurt my credit score?
An overdraft itself does not appear on your credit report. However, if your account is sent to collections due to an unpaid overdraft, that will appear on your credit report and lower your score. A closed account due to overdraft will not directly hurt your credit, but it will show on your banking history.