ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -You may trigger a fee if you overdraw your account using your debit card, just as you would if you “bounced” a check. Or, there could be a charge if you use your debit card as an ATM card at a machine that is not operated by your financial institution.

Detailed explanation-2: -Yes, your checking account can be overdrawn with a debit card. Regularly checking your account balance using Digital Banking or a Mobile App can help prevent overdrafts. Please keep in mind that your debit card transactions process along with other transactions in your checking account.

Detailed explanation-3: -An overdraft is a negative balance in your account. An overdraft occurs when you spend more money than you have available in your checking account and the Bank pays your transaction anyway.

Detailed explanation-4: -An overdraft occurs when you don’t have enough money in your account to cover a transaction and the bank pays it. Examples are overdrafts caused by check, in-person withdrawal, debit card purchase, ATM withdrawal, or other electronic means.

Detailed explanation-5: -Bank overdraft is shown on the credit side of the trial balance. Bank overdraft is a liability for the company as it is to be paid at a future date.