What do you need to know about overdrafts and overdraft fees?

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

  1. We have Next Day Grace (Standard or Plus) overdraft service, that is optional for your account.
  2. We also offer overdraft protection that links your account to a savings account or an overdraft line of credit, which may be less expensive than our Next Day Grace overdraft service. To learn more, visit our website or ask us.

This notice explains our Next Day Grace overdraft service.

What is the overdraft service that comes with my account?

Your account does not come with overdraft service. Unless you have asked us to, we generally do not authorize and pay overdrafts for any transactions.

With Next Day Grace: Standard we will authorize and pay overdrafts for the following types of transactions if you ask us to:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

Unless you ask us for Next Day Grace: Plus overdraft service (see below), we do not authorize and pay overdrafts for the following types of transactions:

  • ATM transactions
  • Everyday debit card transactions
  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined or returned unpaid.

What fees will I be charged if Capital One pays my overdraft?

Under our Next Day Grace overdraft practices:

  • We will charge you a fee of $35 each time we pay an overdraft, up to four fees a day and we will not charge a fee unless your account is overdrawn by $5 or more. If you bring your balance back up by 11:59 PM ET of the next business day, we'll waive the overdraft fees.
  • If your account is overdrawn by more than $5, a fee will be charged on each overdraft transaction that is greater than $5. No fee will be charged if a transaction amount is $5 or less.

What if I want Capital One to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, opt-in to Next Day Grace: Plus by logging into online banking.