Wells Fargo charges you a fee and may decline the transaction

When you try to spend more money than you have in your Wells Fargo checking account, one of two things happens: Wells Fargo either declines the transaction, or it pays it and charges you an overdraft fee. Which one occurs depends on whether you have overdraft protection turned on, what type of transaction it is, and Wells Fargo's current policies for your account.

If you do not have overdraft protection, most debit card purchases and ATM withdrawals will simply be declined at the point of sale. You will not be charged a fee, and the transaction will not go through. However, checks and automatic bill payments may still overdraft your account even without protection enabled, because Wells Fargo processes those differently.

If you do have overdraft protection active, or if the transaction is a check or recurring payment, Wells Fargo will cover the shortfall and charge you an overdraft fee. As of 2024, Wells Fargo's standard overdraft fee is $35 per transaction, though this amount can change. You can have multiple overdraft fees charged in a single day if you have multiple transactions that overdraft your account.

Key Takeaways

  • Wells Fargo charges $35 per overdraft transaction if the transaction goes through, whether it is a check, automatic payment, or a debit card purchase with overdraft protection enabled.
  • Debit card purchases and ATM withdrawals are declined without overdraft protection, so you will not be charged a fee, but checks and automatic payments may still overdraft your account.
  • You can be charged multiple overdraft fees in one day if several transactions overdraft your account, and Wells Fargo processes transactions in an order that may not match the time you made them.
  • Your account goes negative after an overdraft, and you must deposit enough money to cover both the negative balance and any fees before your account returns to zero.
  • If you do not repay the overdraft within a set period, Wells Fargo may close your account and report you to ChexSystems, which affects your ability to open accounts at other banks.

How overdraft fees stack up in a single day

Wells Fargo does not charge just one overdraft fee per day. Instead, it charges $35 for each individual transaction that overdrafts your account. If you have five transactions that each overdraft you by $1, you could be charged $175 in fees in a single day.

The order in which Wells Fargo processes transactions also matters. Wells Fargo typically processes transactions in this order: checks first, then automatic bill payments, then debit card transactions and ATM withdrawals. This means that even if you made a small debit card purchase first thing in the morning, a check that cleared later could push your account negative and trigger overdraft fees on both the check and any debit transactions that follow.

Wells Fargo caps the number of overdraft fees you can be charged per day. Currently, you cannot be charged more than four overdraft fees per day, though this policy can change. However, you can still accumulate significant fees over multiple days if your account remains overdrawn.

What happens to your account balance after an overdraft

After an overdraft fee is charged, your account balance goes negative by the amount of the fee plus the amount you overspent. For example, if you had $50 in your account and made a $75 purchase with overdraft protection on, your balance would become -$60 (the $25 overage plus the $35 fee).

You are responsible for depositing enough money to bring your account back to zero or above. Until you do, your account remains negative, and you may be charged additional fees if other transactions process. Wells Fargo may also freeze your account or restrict your access to it while it is overdrawn.

If your account stays negative for an extended period—typically 30 days or more, depending on Wells Fargo's current policy—the bank may close your account. When an account is closed due to overdraft, Wells Fargo reports it to ChexSystems, a banking history database. This report can make it difficult or impossible to open a checking account at other banks for several years.

Overdraft protection and how to turn it on or off

Overdraft protection is a service that allows Wells Fargo to cover transactions that would otherwise overdraft your account. You can link overdraft protection to a savings account, a money market account, or a line of credit at Wells Fargo. When a transaction would overdraft your checking account, Wells Fargo transfers money from the linked account to cover it.

Overdraft protection itself does not cost money, but if you use it, you may pay a transfer fee depending on your account type and how many transfers you make. Some Wells Fargo accounts include a certain number of free transfers per month; additional transfers may cost $10 each or more.

You can turn overdraft protection on or off through Wells Fargo's online banking portal, mobile app, or by calling customer service at the number on the back of your debit card. If you turn it off, debit card purchases and ATM withdrawals will be declined if you do not have enough money, but checks and automatic payments may still overdraft your account because they are processed differently.

How to recover from an overdraft

The fastest way to stop overdraft fees is to deposit money into your account immediately. Deposit enough to cover the negative balance plus any fees that have already been charged. Once your account balance is positive again, no further overdraft fees will be charged for that overdraft event.

If you have been charged overdraft fees and believe they were unfair or the result of an error, you can contact Wells Fargo and ask for a refund. Wells Fargo may reverse one or two overdraft fees as a courtesy, especially if you have been a customer for a long time or if the overdraft was caused by a system error. However, the bank is not required to refund fees, and reversals are not may provide.

To request a fee reversal, call the customer service number on the back of your debit card or visit a Wells Fargo branch in person. Be prepared to explain why you believe the fee should be reversed. Having a record of your account history and the transactions in question will help your case.

Preventing overdrafts before they happen

The most reliable way to avoid overdraft fees is to keep a buffer of money in your checking account—typically $100 to $300, depending on your spending habits. This buffer means that small mistakes or unexpected charges will not push you into overdraft.

Set up account alerts through Wells Fargo's online banking or mobile app. You can receive notifications when your balance falls below a certain amount, such as $100 or $500. These alerts give you time to deposit money or move funds from savings before an overdraft occurs.

Review your account regularly—at least once a week—to track pending transactions. Pending transactions have not cleared yet but will reduce your available balance when they do. Knowing what is coming helps you avoid overdrafting by accident.

If you frequently overdraft, consider switching to a different account type. Some banks and credit unions offer accounts with no overdraft fees or accounts that simply decline transactions instead of charging fees. You can also ask Wells Fargo whether you are may be able to access for a different account product that better matches your spending patterns.

What happens if you ignore an overdraft

If you do not deposit money to cover an overdraft within a reasonable time—usually 30 days—Wells Fargo will close your account. The bank will then attempt to collect the negative balance through other means, such as deducting it from future deposits or sending your account to a collection agency.

A closed account due to overdraft is reported to ChexSystems, a consumer reporting agency that tracks banking history. This report stays on your record for up to five years and makes it very difficult to open a checking account at most banks during that time. Some banks will not open an account for you if you have a ChexSystems report, while others may require you to pay a higher fee or accept more restrictive terms.

If your account goes to collections, you may also face calls from debt collectors and potential legal action. The amount owed is usually small—often just a few hundred dollars—but ignoring it only makes the situation worse.

Frequently Asked Questions

Can Wells Fargo charge me an overdraft fee if I do not have overdraft protection?

Debit card purchases and ATM withdrawals will be declined if you do not have overdraft protection, so you will not be charged a fee for those. However, checks and automatic bill payments can still overdraft your account and trigger fees even without overdraft protection enabled, because Wells Fargo processes them differently.

How long does it take for an overdraft to show up on my account?

Overdraft fees are typically charged within one to two business days of the transaction that caused the overdraft. However, the transaction itself may take several days to clear, so you might not see the overdraft fee immediately. Check your account daily during this period to catch overdrafts early.

Can I dispute an overdraft fee?

You can contact Wells Fargo and ask for a fee reversal, but the bank is not required to grant one. Wells Fargo may reverse one or two fees as a courtesy, especially if you have a good account history. Call the number on your debit card or visit a branch to request a reversal.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is a service that transfers money from another account to cover overdrafts; it does not cost money but may include transfer fees. Overdraft fees are charges Wells Fargo levies when a transaction overdrafts your account. You can have overdraft protection and still be charged overdraft fees if the linked account does not have enough money to cover the transfer.

Will an overdraft hurt my credit score?

An overdraft alone does not directly hurt your credit score because Wells Fargo does not report overdrafts to credit bureaus. However, if your account is closed due to overdraft and sent to collections, that collection account will appear on your credit report and damage your score significantly.