About Overdraft Accounts

Galileo supports overdraft protection for your customers when a primary checking account is associated with an overdraft account. An overdraft account provides a line of credit when there are insufficient funds in the primary account to cover a transaction. The overdraft product can be linked to a primary debit card product, mobile wallet product, or consumer checking product. Overdraft is a regulated product. You may offer overdraft protection to your customers if you meet requirements and obtain permissions from your bank.

Overdraft terminology

Galileo uses the following terminology to describe overdraft accounts and features.

• Demand Deposit Account (DDA) — The customer’s primary account. This is the first account created when a customer is enrolled, and the product that the overdraft account is linked to.
• Overdraft account — An account that provides a line of credit to the account holder when there are insufficient funds in the DDA. The account holder must opt in and maintain eligibility to access overdraft account funds.
  • Active overdraft account — An overdraft account that is available for use, such that all qualifying transactions can draw on it.
  • Inactive overdraft account — An overdraft account that is not available for use. The account may be technically active (it is connected to the DDA), but transactions cannot use it because of a disqualifying event or condition. For details, see Account holder loss of access to the line of credit in Managing Overdraft Accounts.
• Line of credit — The overdraft funds available to the account holder. This is also called the credit limit.
• De minimis — The minimum threshold amount that the primary account can draw on the overdraft account, at which point a fee is applied.
• Grace period — A period of time granted to the account holder to repay funds drawn on the overdraft account before the overdraft fee is charged. The grace period timer starts when funds drawn on the overdraft account meet or exceed the de minimis threshold.

Guide contents

The following sections in this guide describe overdraft accounts at Galileo.

• How Overdraft Works at Galileo — Overview of the account holder experience, product setup, and overdraft transactions.
• Configuring Overdraft Products — Options and considerations for overdraft product setup.
• Managing Overdraft Accounts — Requirements for overdraft account eligibility and information about how overdraft works with secondary account configurations.
• Overdraft Operational Setup — Description of the Get Overdraft Balance endpoint, Events API webhooks, and CST controls for overdraft accounts.
• Overdraft Workflows — Workflows for overdraft settlement, credit limit, repayment, and funds transfer in case of non-payment.
• Creating an Overdraft Account — Procedures to create, view, and disable overdraft accounts.