Overdraft Fees and Policies
Dec 25, 2023 By Triston Martin

When you spend more money than you have available in your Wells Fargo checking account, you may have repercussions as a bank client. The amount of money you have to pay in bank fees is mostly determined by the kind of transaction you carry out and whether you use the bank's overdraft facilities.

The bank recently announced that it would eliminate overdraft protection transfer fees and returned item fees incurred when an account does not have adequate cash. Nevertheless, the normal overdraft fees will still be applied.

Wells Fargo overdraft fee: Overdraft fees are automatically applied to Wells Fargo checking accounts if the balance falls below zero. The specifics of the settings are included in the following. The fees are adjusted somewhat for clients who want to participate in the overdraft protection programs that are completely voluntary. More information may be found in the portion of this page that discusses the Wells Fargo overdraft services that are optional.

For ATM or everyday debit transactions: When you have a checking account with Wells Fargo, the default option is to deny ATM or daily debit transactions for an amount more than your available balance. The financial institution levies no charge for rejecting these transactions.

For checks and recurring bills: Like most other banks, Wells Fargo utilizes its judgment by default when it comes to regular bill payments and checks. This is also the case with other financial institutions. There is no penalty levied by the bank if it chooses to send back a check you made or cancel a regular bill payment due to insufficient funds in your account. An overdraft fee will be assessed to your Wells Fargo checking account if the bank allows a check to be written or a recurring bill payment to be processed while there is insufficient money in the account. How much? Here are some details:

  • Overdraft fees often range anywhere from $25 to $35.
  • There is a cap of $105 daily, with a limit of three daily fees.
  • Continuous overdraft cost Unlike other financial institutions, Wells Fargo will not assess a continuous overdraft fee against your account even if it has been in the negative for several consecutive days.

Optional Wells Fargo Overdraft Services and Associated Fees

Overdraft Protection and Debit Card Overdraft Service are two optional overdraft services the bank offers. Clients wishing overdraft transactions to be processed may enroll in either or both of these services. If you enroll, the bank will be able to charge you an overdraft fee in different situations than they would be able to under the account settings that are by default.

Overdraft Transfer Protection Service

What it is: This supplementary service from Wells Fargo allows you to connect one or two of your other Wells Fargo accounts, such as a savings account, credit card, or line of credit, to your checking account to cover any potential overdrafts.

  • There is no cost for the transfer. However, interest charges will apply if you link your account to a Wells Fargo credit card.
  • Wells Fargo will transfer the greater of $25 or the negative balance amount in your linked savings account when you establish the connection. Wells Fargo will transfer the whole amount if it's more than $25.
  • Wells Fargo will advance the larger the amount necessary to cover the transaction or $25 if you link a credit card to your account. Wells Fargo will always draw from the savings account first if two accounts are linked together, even if the line of credit or credit card is set as the default.
  • Once you establish a line of credit with Wells Fargo, you may get cash advances in $100 or $300 increments, depending on the amount of credit you have connected.

The bank will transfer any available funds if insufficient money is in the backup accounts to pay the overdraft. After the transfer has been completed, the bank can accept or deny the transaction. This decision depends on whether the consumer has enrolled in debit card overdraft protection. If the transaction is allowed, the overdraft charge policy of the bank will come into play.

Debit Card Overdraft Service

What it is: An optional overdraft service for debit cards that allows the bank to authorize the regular debit card and ATM transactions even when there is insufficient money in the card's bank account, for which the customer would be charged a fee. Before putting you on an overdraft protection plan for your debit card, the bank must acquire your approval first. If you decide not to use this service, any attempted ATM or debit card transactions that exceed your available amount will be denied, but you will not be charged a fee.