What is overdraft protection?

Overdraft protection prevents all kinds of transactions such as ATM, debit cards, etc from causing the account’s balance to fall below zero. To prevent the insufficient fund transaction, Overdraft protection is done and the bank will charge a fee with an overdraft fee. This acts as a guarantee that all the transactions will be cleared. Also referred to as "cash reserve checking" Overdraft protection is mainly used as a cushion for checking accounts.