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What is a bank overdraft card?

Kristina Firsova
Kristina Firsova
February 26, 2013
What is a bank overdraft card?

Many have recently become interested in the question of what an overdraft card is. In fact, overdraft is the excess of its capabilities in the payment system. That is, the payer does not keep track of how much money he has left, but in spite of this, he does not want to limit himself in some way and wants to continue his spending without feeling the lack of finance.

But what does an overdraft card mean? This type of card is something like a loan, but it is much smaller and is given for a shorter period. Initially, this system was invented for legal entities that opened bank accounts. The bank provides such a service to a client who is in dire need of money, but at the same time he must be sure that payments will be made regularly.

Therefore, this service allows all organizations and enterprises to make payments in a timely manner, but it does not depend on how much money is in his account, since the amounts paid will be written off against the debt.What is the type of card "overdraft"? What exactly does this mean? If, for example, to compare it with a conventional credit card, the main difference is that the credit card itself implies a loan, that is, all funds on this card are issued exclusively by the bank, another thing is an overdraft card. This type of card is different in that you can use both your funds and bank money in the event of a lack of your personal finances, and you can also put your personal money on it and spend it directly. That is the essential difference of the cards. The exact terms of payments and their amounts are determined individually with each client.

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