How To Get Overdraft Fees Refunded

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How to Get Overdraft Fees Refunded

Are you sick of getting hit with ridiculous overdraft fees? On average, overdraft fees tend to be around $34. This can be extremely frustrating, especially if you’re already running low on funds. Before you call it a loss and forfeit that money, let’s dive deeper and find out if you can avoid overdraft fees or get them refunded altogether.

Try getting overdraft fees waived

You’d be surprised how a quick phone call to your bank could save you money. You might be able to get a portion or a full courtesy overdraft fee waived. Sometimes, you’re able to deposit money the same day to bring your account balance current, they will waive the overdraft fee.

Dispute overdraft fees 

If you find any fees or charges on your statement as a result of a merchant mistake, call the merchant and dispute it immediately to see if they will reverse the charge. Follow that up by calling your bank to let them know that the merchant made a mistake, your bank might waive the overdraft fee if they see the transaction is pending a reversal.

If your bank is unwilling to refund the overdraft fee, call the merchant back and ask them to reimburse you the cost of the overdraft fee considering it was their mistake that put you into overdraft.

Transfer funds from another bank account

Some banks allow you to transfer funds within 24 hours of overdraft to avoid the overdraft fee. You might need a savings account with them to transfer from or scheduled a transfer from an external account. When you link all of your accounts to a RoarMoney account, you’ll get access to bank transfers and direct deposits without a fee.

Why overdraft protection is pointless

The point of overdraft protection is to avoid NSF fees and getting denied a transaction. The problem with this is that you get charged a fee for this service every time a transaction is covered, which could happen multiple times a day. 

Avoiding a fee with a fee seems quite counterproductive. When you use a RoarMoney account, any transaction that would overdraft your account is declined if you don’t have sufficient funds. This ultimately saves you money by avoiding overdrafts fees, NSF fees, and overdraft protection fees altogether. But, what if you need that transaction to go through? Read on to find how MoneyLion can help. 

4 Ways to avoid overdraft fees

In our opinion, the safest way to avoid overdraft fees is to track your spending, budget, and turn off overdraft protection entirely. To do that, there are a few banking tools that will help you when you need cash now but don’t have the funds to cover your withdrawals.

Early payday 

Have you ever wished you could get your payday early? Look no further! MoneyLion offers RoarMoney users access to their paychecks up to 2 days early when you link a direct deposit. Find out more here.

Instacash

If you know your account balance is getting low and you think it might overdraft, consider using a 0% APR Instacash advance from MoneyLion to cover the cost until your next payday. 

You could get up to $250 without a credit pull, no interest, or any additional fees. It could take up to 72 hours to get your funds from Instacash. Want to get your funds sooner? Pay a small fee for turbo delivery and get your funds instantly. 

Credit Builder Loan

Having poor credit doesn’t give you many affordable borrowing options when you’re running low on cash. With a Credit Builder Loan, you have access to low APR installment loans that help build up your credit rating while you borrow, without needing a credit pull. 

Your payments are set-up on auto-pay and spread out over 12 months, giving you affordable monthly payments. Some MoneyLion members have seen their credit increase by up to 60 points within 60 days by monitoring their credit score right from the mobile app.

Overdraft refund assistance from Cushion

If disputing an overdraft transaction doesn’t work, try making up for those lost funds by using Cushion. They help you recover fees including overdraft and late fees by negotiating with your banks and lenders on your behalf.  

They’ve helped customers get back over $4,000,000 in fees and you always keep 100% of the refund. It won’t harm your credit and when you get a credit card fee waived your score could go up! They offer 3 annual membership options and it only takes a few minutes to sign-up. 

Avoid expensive overdraft fees when you bank with MoneyLion

Don’t let overdraft fees get in the way of you reaching your financial peak. When you’re a RoarMoney member, you can utilize a built-in spend tracker in your app, low-cost cash advances, and no hidden fees– all for $1/month! 

To get started and become a RoarMoney account member, you’ll need to be a MoneyLion user and provide your income range and source of income. Head over to MoneyLion and get started today

How to get overdraft fees refunded

Overdraft fees are essentially a fine for not having enough money in your account. At best, they’re pesky. At worst, they could risk throwing your finances off track. It’s no wonder you’re wondering how to get overdraft fees refunded. 

Fortunately, it is possible to get overdraft fees back. It just takes a bit of effort on your part, and you may be able to get a full refund. 

Here’s everything you’ll need to know about how to get overdraft fees refunded and where to start. 

How much are overdraft fees?

Overdraft fees are on average $35 per overdraft charge at major banks. There can be slight variations among different banks, but nevertheless, it’s a significant amount of money, especially if you’ve only overdrawn your account by a few dollars. Not to mention the fact that these costs can add up quickly over time, particularly if you’re prone to overdrafting. 

Getting an overdraft fee refund gives you a chance to get your money back and put it to much better use, such as a night out or even investing. Fortunately, getting bank fees refunded isn’t nearly as hard as you’d think. 

Simple ways to get a refund on an overdraft fee

Banks are notorious for slow customer service and bureaucracy. This can make you hesitant to go after your overdraft fee refund, but don’t be! It’s not as hard as you’d think and it’s absolutely worth it. Here’s how to get overdraft fees waived.

Try getting overdraft fees waived

In short, a quick phone call to your bank could help you save you money. You might be able to get a portion or the entire overdraft fee waived. In some cases, the bank may require you to deposit money the same day to bring your account balance in the positive, and in exchange they’ll agree to waive the fee. 

Dispute overdraft fees 

If you find any fees or charges on your statement as a result of a merchant mistake, call the merchant and dispute it immediately to see if they will reverse the charge. 

Follow that up by calling your bank to let them know that the merchant made a mistake. In this case, your bank might waive the overdraft fee if they see the transaction is pending a reversal.

If your bank is unwilling to refund the overdraft fee, call the merchant back and ask them to reimburse you the cost of the overdraft fee considering it was their mistake that put you into overdraft.

Transfer funds from another bank account

Some banks allow you to transfer funds within 24 hours of overdraft to avoid the overdraft fee. You might need a savings account with them to transfer from or scheduled a transfer from an external account. 

5 ways you can avoid overdraft fees

Getting your overdraft refund is great, but ideally, you want to avoid them in the first place. That way, you’ll save the stress and hassle of having to call the bank. Here’s how to avoid overdraft fees in the first place. 

Opt out of overdraft protection

If you’re repeatedly susceptible to overdraft charges, it’s possible your account is opted into overdraft protection. This is the technical term for essentially allowing the bank to process a transaction, even if you don’t have the funds to cover it, and agreeing to let them charge you in exchange. 

The name itself can seem confusing, but opting out of overdraft protection will stop transactions from going through if you don’t have the funds available. This will in turn prevent overdraft charges. 

Check your account balance regularly

If you’re not sure of how much is in your account, it’s possible you may overestimate your ability to afford a large purchase. This is especially true if you have automatic payments set up to manage bills. Keeping an eye on your account balance will also help you stay on track of your budget and improve your financial literacy overall.

Set up alerts for low balances

On top of opting out of overdraft protection and checking your balance regularly, setting up low balance alerts can act as an extra guarantee that you won’t be caught off guard. You should typically be able to set up alerts for low balances right in your mobile banking app. 

Deposit or transfer money quickly after an overdraft occurs

If an overdraft charge does slip through the cracks, make sure to transfer your funds as soon as possible. This will put you in a stronger position with the bank when you ask for a refund. 

Use a prepaid debit card

Using a prepaid debit card is likely the surest way to avoid overdraft fees in the first place. With a prepaid debit card, your funds are loaded beforehand, so it’s nearly impossible to overspend, meaning you won’t have to worry about risking overdraft fees. 

Why you might want to steer clear of overdraft protection 

The point of overdraft protection is to avoid NSF fees and having your transaction denied. The problem with this is that you could be charged an overdraft fee every time a transaction is covered, which could happen multiple times per day. 

Get bank fees refunded

Bank fees can catch you off guard and they can be annoying at best. Fortunately, just because your bank has charged your account doesn’t mean it’s a done deal. It’s entirely possible to reverse it and get your bank fees refunded. Just make sure to call as soon as possible. 

Going forward, try your best to avoid overdraft fees in the first place. And above all, opt to work with a bank that doesn’t charge excessive fees, or is at least transparent in their policies. 

Can you get overdraft fees refunded?

Yes! It’s absolutely possible to get overdraft fees refunded. Call your bank and explain that you are ready to transfer the funds to your account now in exchange for the charge being dropped. 

How do I ask for an overdraft fee refund?

Be polite, explain your situation and that you have the funds readily available to cover the original charge, and ask for the fee to be removed.

Can you contest overdraft charges?

Explain the reason for the overdraft charge in the first place. Sometimes charges don’t always go through when they’re made, and it could have looked like you had enough money in your account when you actually didn’t. Explain this politely and ask for a refund. 

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