How Much Can You Overdraft With MetaBank? [Get The Facts]

Most of us have found ourselves in a financial tight spot at one time or another. We might have miscalculated an expense, found ourselves between jobs, or just had some delays with our paychecks. 

Whatever the reason, this can all lead to one thing – overdrawing on our bank accounts. 

An overdraft is when a bill or other expense is charged to our accounts, but the account doesn’t have enough money to cover it. So, the bank or credit union pays the expense anyway. Now, this means that you owe the sum the bank paid out on your behalf, as well as any overdraft fees or charges. 

So, how much can you overdraft with MetaBank? Is it even possible to take out overdrafts with MetaBank – they’re well-known for their prepaid cards, after all? 

Let’s find out. 

Navigation Links: 

• What Is MetaBank? 
• Do MetaBank Allow Overdrafts? 
• Am I Eligible For An Overdraft?
• How Much Can You Overdraft With MetaBank? 
• What Should I Know About Overdrafts? 
• The Bottom Line

What Is MetaBank? 

MetaBank is an alternative financial service, designed for users with poor or no credit who don’t wish to be tied to traditional banking systems. MetaBank is one of the leading providers of prepaid cards in the US. They specialize in prepaid cards for all occasions – travel cards, gift cards, automobile payments, cards for agricultural or business purposes, borrowing, and much more. 

Since MetaBank doesn’t require credit checks, just about everyone is eligible for a MetaBank account. However, this also means that your MetaBank account and any subsequent transactions don’t impact your credit score in any way – for bad or for good. 

Prepaid cards allow for an extra feeling of security, as you can rest assured that you won’t accidentally spend more than you intended. This no-credit scheme is what makes MetaBank accounts suitable for people with no credit or bad credit. 

MetaBank’s optional direct deposit system, which you can sign up for when you open an ACE Flare account, allows users to receive deposits up to two days early, and also eliminates the need for handling paper checks.

Do MetaBank Allow Overdrafts? 

The simple answer here is yes, MetaBank does allow overdrafts. However, since MetaBank does primarily deal with prepaid cards (which often don’t allow overdrafts), you will need to opt into the Optional Debit Card Overdraft Service. 

With regular debit cards, overdrafts are fairly standard. You may have a built-in overdraft allowance in your debit account already, with further options to expand. With MetaBank, however, you will need to apply for the extra optional overdraft service. 

With MetaBank’s Optional Debit Card Overdraft Service, you have twenty-four hours to restore your balance after the initial transaction. For example, if your bank account becomes overdrawn by $20 at 5 PM on Thursday, you have until 5 PM on Friday to add $20 or more back into your account, restoring it to a positive number – not overdrawn. 

This means that you have twenty-four hours to avoid overdraft fees. After the twenty-four-hour period, overdraft fees will be charged. What those fees are will depend on the overdrawn amount, the type of account you hold, and other variables. 

Am I Eligible For An Overdraft?

So, if you’ve decided to apply for a MetaBank overdraft, are you eligible? An overdraft – especially an arranged overdraft – can work like a short-time loan, giving you a little extra money until your next paycheck comes in. 

To be eligible for an overdraft on a particular account, you obviously need to be the registered account holder. You will need to opt into the Optional Debit Card Overdraft Service, which you may not have done when you first set up your account. You can do this through your online MetaBank account. 

How Much Can You Overdraft With MetaBank? 

There’s no upper limit on how far you can overdraft. However, you are limited by how many times you can overdraft. 

For overdraft amounts over $10, if you don’t pay the amount back within twenty-four hours, you’ll pay an overdraft fee of $20. You have a maximum number of five overdraft fees per month. If you don’t pay the outstanding balance within 30 days (the exact number might vary, depending on your account), your account may be closed. 

Arranged overdrafts can be a little different. They’re essentially like preapproved loans, and the fees and charges may be different. 

What Should I Know About Overdrafts? 

Are overdrafts good or bad? That’s really up to you, and it depends on how you use them. You should always review your Deposit Account Agreement before organizing an arranged overdraft, or intentionally overdrawing your account. 

If you haven’t opted into the Optional Debit Card Overdraft Service when setting up your account, these overdraft options won’t be available to you. If you try to draw more money out of your account than you currently have, your transaction will be denied. 

While this means that you won’t accidentally rack up fees (for example, if you think you have more money in your account than you actually do or a bill has been withdrawn earlier than you expected), it does leave you without a safety net. 

However, overdrawing has plenty of downsides of its own, too. The obvious problem is that you can rack up fees that you may struggle to repay – as the original amount needs to be repaid, too – but unpaid arranged overdrafts can have a serious impact on your credit score.

The Bottom Line

It’s important to be aware of your overdraft capabilities, as well as how much overdrawing might cost you. MetaBank prepaid cards often don’t allow overdrawing, but ACE Flare Accounts do have overdraft options. 

While going into your overdraft on occasions can be extremely useful, doing it regularly can mean that your finances are struggling. You should never have to rely on your overdraft on a monthly basis. Aside from being stressful, it’s also expensive, as fees and charges will be added to your account. 

Like any other financial choice, overdrafts need to be thought about carefully and seriously.