Definitions

1. noun

a situation in which a bank allows a customer to withdraw more money from their account than the account balance, with the promise of later repaying the amount.

“Her car payment was delayed, and she was forced to take out an overdraft to cover the expenses.”

2. verb

to draw or withdraw money from an account when there is insufficient balance, risking a fine or penalty.

“I overdrafted my checking account and now I have to pay a hefty fee.”