What factors cause overdrafts?

[Suba]

The term Overdraft in the finance world is a condition or account balance whose value is negative below zero. The main cause of an overdraft is of course due to a withdrawal either via an ATM machine or using a check that is larger than the balance you have. Overdraft problems often occur in a Checking Account or a Current Account. The overdraft feature is often provided by banks to certain trusted customers, so these particular customers will later have debts and interest to pay. Apart from overdrafts that can occur due to accidentally making a withdrawal that is larger than the account balance, it turns out there are also many other contributing factors, what do you think?

 

[Augusta]

The overdraft allows the customer to continue paying bills even when there is insufficient money in their account.