For credit cards, it is allowed to "consume first, then repay", and overdraft is an important feature. For debit cards, it should be "deposit first, then spend", but on the premise that it is recognized as goodwill overdraft and repayment is guaranteed, the cardholder is also allowed to overdraw an appropriate amount in a short time when the money is urgently needed. Overdraft interest is generally much higher than bank loans in the same period, and card issuers also have a set of measures to prevent and recover overdraft risk losses.
Extended data
According to the provisions of Articles 17, 18 and 19 of the Measures for the Administration of Credit Card Business, credit card holders can overdraw for consumption purposes within the legal limit and time limit. Gold card overdraft limit 10000 yuan, ordinary card 5000 yuan. The maximum overdraft period is 60 days. Credit card overdraft interest shall be charged at the daily interest rate of 5% from the signing date or bank account date 15, and at the daily interest rate 10% if it exceeds 15% if it exceeds 30 days or the overdraft exceeds the specified limit.
Advantages and disadvantages of credit card overdraft;
1. The overdraft withdrawal amount is set according to the card usage, which is different from the bank's withdrawal standard. The minimum shall not exceed 30% of the credit line, and the maximum shall be 100% of the credit line.
2. In addition to the cash withdrawal fee (the cash withdrawal fee varies from bank to bank), domestic and foreign overdrafts must also pay interest and do not enjoy interest-free treatment.
References:
Baidu encyclopedia-credit card overdraft