Offer a fair, compliant
financial safety net.

Overdraft management in banking refers to how financial institutions handle transactions that exceed an account’s available balance. This includes setting limits, charging fees and offering other coverage options.

Personalized, dynamic limits are set by account-level data like transaction and deposit history. This lets banks and credit unions offer higher limits to account holders who are more likely to repay the balance in a timely manner. This creates a fairer, more responsible approach that reduces risk for both the financial institution and the consumer. Ability to repay is also a factor that regulatory agencies now look for in overdraft programs.

Yes. But regulators look for transparency, fairness and the account holder’s ability to repay the overdraft. Solutions like Intelligent Limit System® are designed to meet these evolving expectations while providing a consumer-first approach.