I didn’t mention that Monzo would do this, instead they’ll simply decline the transaction. As you say, they definitely won’t do this -
I don’t think this -
will be a major issue, as the user will be getting their salary paid into their current account.
Lloyds give me until 4pm on the same day to clear my overdraft but when I’ve not had the money to clear it, I’ve remained overdrawn & incurred their charges as a result. Granted Monzo’s charges won’t be punitive but I’d still rather just have the transaction declined.
My understanding is that Monzo will have offered users, who are eligible for an overdraft, an overdraft a few days before their balance is due to hit zero anyway so you’ll have the option to take one in order to manage this scenario or if you can’t afford it, have the payment bounce…