The basics of Business Overdraft Protection

What is Business Overdraft Protection?

Business Overdraft Protection is a service offered by U.S. Bank that allows businesses to link their accounts, such as savings accounts, money market accounts, secondary checking accounts or a line of credit to their business checking accounts.1,2 Our service provides businesses with the ability to automatically transfer funds from the linked account to cover transactions that exceed the available balance in their business checking account, helping you avoid overdraft paid fees.

How does a business overdraft occur?

A business overdraft occurs when the available balance in a business checking account falls below zero, and a transaction, such as a check, debit card purchase, or automatic payment, is processed against the account. This can happen when a business has a shortfall in its cash flow, unexpected expenses or delays in customer payments, or when there is an error or miscalculation in the account balance.

How to avoid negative balances and overdrafts for business accounts.

It’s happened to us all: the inconvenience and fees that come with bounced checks, declined debit card transactions and other similar events. With Overdraft Protection, funds are automatically transferred, up to a certain limit, to cover a shortfall in your account.

How does Overdraft Protection work?

Here's how to get started

Fees and coverage

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  1. Personal accounts and business accounts cannot be linked together for Overdraft Protection. Only one deposit product and one credit product may link to a business checking account. When the checking account has a linked Business Reserve Line of Credit, the system will automatically draw from that account first, which may incur a fee. If the checking account does not have a linked Business Reserve Line of Credit and has both a credit product and a deposit product linked as Overdraft Protection, the system will draw from the deposit product first, which will not incur a fee. Funds only draw from the credit product (excluding Business Reserve Line of Credit) if the deposit product has insufficient available funds.

  2. To avoid overdraft paid fees and manage your Overdraft Protection, you can link another deposit account, credit product, or active U.S. Bank Business Credit Card account with the same account owner(s).

  3. Subject to credit approval. Other fees may apply. Please see a banker for details. Lines of credit, including business credit cards, are offered by U.S. Bank National Association.

  4. The interest rate applicable to the account shall be a fixed rate of 21.90%. A $12.50 transfer fee will be charged to the linked business checking account when funds are automatically transferred from the Business Reserve Line of Credit to the business checking account as Overdraft Protection. Additional fees may apply if your balance exceeds the approved credit limit.

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Deposit products are offered by U.S. Bank National Association. Member FDIC.