The full explanation
Many banks charge a fee, on top of what you have to pay back. Under Regulation E, they cannot charge that fee for a one-time debit card purchase or an ATM withdrawal unless you first agreed to (opted in to) their overdraft service. You can change your mind later.
An example
When he opens his account, the credit union asks Pedro whether he wants its overdraft service for debit card purchases. Pedro says no, so the credit union cannot charge him an overdraft fee on those purchases.
You will see it in…
- The form to opt in or out of overdraft service when you open your account
- Your bank statement, with any overdraft fees
- Your bank's or credit union's fee schedule
