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:
Advantages and disadvantages of credit card overdraft;
Overdraft cash withdrawal is a small cash loan provided by the bank to help you flexibly allocate funds when you are in urgent need. Generally speaking, you take a credit card from the bank and withdraw cash through the bank counter or ATM, which is a form of borrowing. If you spend money in a shopping mall, take a credit card directly. This is called overdraft consumption (interest-free period).
1. The overdraft withdrawal amount is set according to your card usage. Different banks have different withdrawal standards. 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.
Overdraft can be repaid as you borrow, with daily interest, with a daily interest rate of five ten thousandths; No overdraft, no interest, no interest for repayment on the day of overdraft, and interest for how many days of overdraft.
3. If the cardholder makes overdue repayment, interest will be calculated at 0.5 ‰ per day from the day after consumption, and the overdue account will be compounded. Therefore, the longer the overdue time, the higher the daily interest will be.
Baidu encyclopedia-credit card overdraft