Overdraft and NSF fees: is there a limit in the US?

The fees may be legal, but you have more say over them than you think.

The answer in 2 lines. No federal law caps how much a bank can charge for an overdraft or a bounced payment. A 2024 CFPB rule that would have limited overdraft fees at large banks was voided by Congress in May 2025. You still have one key protection: a bank can't charge an overdraft fee on an ATM withdrawal or a one-time debit card purchase unless you opted in. You can change that choice at any time. Checks and recurring payments can still trigger fees. Your statement has to show your total overdraft fees, and you can ask for a refund or file a complaint.

The first 3 steps

Look at your statement. Banks have to list fees by type, and show Total Overdraft Fees and total returned-item fees for the period and for the year to date.
Compare them with your bank's fee schedule. Banks must give it to you when you open the account and send it in writing if you ask.
Call or write to the bank. Ask whether you opted in to debit and ATM overdraft coverage, ask to opt out if you want, and ask for a refund of recent fees.

Which transactions can cost you a fee

Transaction	If you did NOT opt in	If you opted in
ATM withdrawal, one-time debit card purchase	Usually declined if your balance is too low, with no overdraft fee	The bank may pay it and charge an overdraft fee
Check, recurring debit, automatic bill payment	The bank may pay it and charge an overdraft fee, or return it and charge a non-sufficient funds (NSF) fee	Same
Payment returned unpaid	The company you were paying may add its own returned-payment fee	Same

The amount of each fee, and how many the bank charges in one day, are set by each bank. Some banks have stopped charging certain fees. Check your own fee schedule.

What not to do

Assuming there's a legal cap: at the federal level there isn't one. Your fee schedule, and possibly your state's rules, decide.
Saying yes to overdraft coverage without thinking about it. Without it, a debit purchase you can't afford is usually just declined, with no overdraft fee.
Paying a company that promises to "get your bank fees back". Asking the bank and filing a complaint with the CFPB are free.
Ignoring a negative balance. If the bank closes the account, it may report you to a checking account reporting company, which can make it harder to open a new account.

What you can do yourself

Ask for a refund: for a one-off mistake, banks often agree to refund some fees. Ask by phone, then confirm in writing.
Turn off debit and ATM overdraft coverage: tell your bank or credit union. You can change your mind at any time.
Set up alerts in your banking app for a low balance, and link a savings account as a backup if your bank offers it.
Fees charged without your consent: if you never opted in and were still charged an overdraft fee on a debit card purchase, file a complaint with the CFPB. Choose "Checking or savings account", give the dates and amounts, and attach your statement. By phone: (855) 411-2372.

Federal rules and state rules

Debit and ATM opt-in: required by federal Regulation E. The default is that you're not enrolled.
Fee disclosure: under federal Regulation DD (Truth in Savings), banks must disclose their fees and the kinds of transactions that can trigger an overdraft fee.
No federal cap: the CFPB's overdraft rule for banks and credit unions with more than $10 billion in assets was overturned in May 2025, and the CFPB can't issue a substantially similar rule.
Your state: some states regulate the banks they charter. Ask your state banking department if it has its own rules.
Who regulates your bank: use HelpWithMyBank.gov. Search for your bank's name to find the right agency. For a federal credit union, go to the NCUA's MyCreditUnion.gov complaint page (800-755-1030), after trying the credit union first.

Good to know

If fees keep piling up, an account with no overdraft fees may cost less in the long run: see our guide on low-cost bank accounts.
A declined card isn't always a balance problem: see our guide on why a card gets declined.

In Phoenix, Andre sees $105 in overdraft fees on his statement: three debit card purchases made the day before payday. He calls his bank and learns that he opted in when he opened the account. He opts out on the spot, explains that his paycheck came late, and asks for a refund. The bank refunds two of the three fees. Since then, his card is simply declined when his balance is too low.

A made-up story, for illustration.

Bobby

Sources, verification, confidence

Verified on November 5, 2026, for the United States. Confidence: high for the opt-in rule, the disclosure rules and the repeal of the federal cap; medium for state rules, which vary and aren't listed here. Fee amounts depend on each bank. No bank is recommended here. This is general information, not personal financial advice.