How to Get Overdraft Fees Refunded

A small mistake can get expensive fast. Maybe you forgot about an automatic payment, a deposit lands a day or two late, or a transaction cleared sooner than you expected. Suddenly, there's a $35 fee on top of it.

You can ask your bank to reverse the charge. Plenty of people don't ask their bank to reverse the charge, assuming the answer will be no. But a first-time fee is often waived as a courtesy. Here's how to ask, what to say, and steps to prevent charges from hitting your account in the future.

Can you get overdraft fees refunded?

You can ask your bank for an overdraft fee refund, but banks and credit unions aren’t obligated to grant it.

Many banks consider:

• How long you’ve been a member
• How often you overdraft
• Your transaction frequency and overall activity
• The circumstances surrounding the overdraft

The type of overdraft also matters. If you believe your bank charged a fee incorrectly or after you opted out of overdraft coverage, call them to dispute the charge.

Read more >> What happens when your bank account goes negative?

How to get overdraft fees refunded

When you request an overdraft fee refund, you can take a few steps to improve your odds.

Call your bank directly

Most banks require you to call customer service or visit a branch to request a refund, though some — including Chase — let you ask through their app or secure messaging.

Be polite and specific

The fee is frustrating, but don't take it out on the rep. Say plainly what you're requesting, and wait for an answer.

Mention your history

If you rarely or never overdraft, say so. A long history of good standing and regular deposits gives the rep something to point to when approving the refund. Keep it accurate, in case they can see your account while you're talking.

Ask for a supervisor, if needed

The first rep may not have the authority to approve a refund, and some banks route these requests to managers by default. Be patient and follow the process.

Follow up in writing

If you're turned down by phone, send a message through your bank's secure messaging system or inbox. It might not change the answer, but it does create a record.

Read more >> How Direct Deposits and Automatic Withdrawals Affect Your Credit

What to say when you call

You don’t need a complicated script to request a refund. Something like this works:

“Hi, I noticed that I was charged an overdraft fee on my account. This isn't something that usually happens. I've banked with you for [number] years. Would you be able to waive it as a one-time courtesy?"

If the rep says no, it's fine to ask once more: “I understand. Could I speak with a supervisor about reviewing the charge?"

If the answer is still no, thank them and ask what you can set up to avoid the fee in the future. Most banks offer free balance alerts and overdraft protection linked to a savings account that are worth turning on either way.

When banks are most likely to refund overdraft fees

You're more likely to receive a refund if:

• You’ve rarely or never overdrafted with your bank
• Your account has a positive history
• You’ve been a loyal member for many years
• The overdraft was due to unusual circumstances

Banks decide case by case, and the same bank may handle two similar requests differently. It’s all about asking for the courtesy and making a strong case for why the bank should grant your request.

How to avoid overdraft fees in the future

Many overdrafts are preventable with a few free settings and oversight. Here's what to do to avoid the risk of fees in the future

Set up alerts online or through your banking app

Go to your online banking portal or banking app to opt in to low-balance alerts and push notifications. That way, you'll receive a text message or app notification when your checking account falls below a specified threshold, like $200 or $500. You can also set up automatic transfers from your savings account when your balance is low.

Link your savings for overdraft protection

Most banks allow you to authorize automatic bank transfers from your savings to your checking instead of charging you an overdraft fee. It's among the best solutions for avoiding extra charges, though make sure your savings balance is healthy enough to absorb withdrawals.

Opt out of overdraft coverage

Banks need your permission to cover debit card and ATM transactions that overdraw your account. Turn it off, and your card gets declined instead of going through, helping you to skip the fee altogether.

If you're not sure whether yours is on, call your bank and ask.

Track your spending more closely

Overdrafts happen when you swipe your debit card and don’t have enough money in the account to cover the transaction. If you keep a close eye on your spending and your checking account balance, you can proactively avoid overstretching your finances.

Monitoring your money habits is a good strategy for sticking to your budget, saving money, and achieving your financial goals.

Read more >> How to Make a Budget

Bottom line

Banks refund overdraft fees more often than you might expect. But it's always a request, and the answer could come down to your banking history. Ask anyway: A polite call costs nothing, and your bank may be more willing to reverse the charges a first time.

The better positioning is not needing to ask. Balance alerts catch most overdrafts before they happen, and a small cushion can absorb the rest.

Building credit gives you a cheaper option than a fee when that cushion runs out. Kikoff's Credit Account reports your on-time payments to all three credit bureaus, no hard credit check required, from $5 a month.