The Overdraft Balance

I received my overdraft credit agreement yesterday (about a week after I took out the overdraft but I’m guessing that, that’s just because the process is new) & it included this information -

Your overdraft balance is calculated based on when transactions are authorised, which is normally when they appear in your feed.

but also this -

When you make a payment we will immediately deduct the balance from your account, but for overdraft charge calculations we will only consider transactions that have been settled with MasterCard (which may be a couple of days after the transaction was made).

which doesn’t make much sense to me. It sounds like the overdraft balance works exactly the same way as the account balance, in which case, why have an overdraft balance?

Also, won’t showing users a balance that suggests that the user is in their overdraft (because of a transaction that’s not yet settled), cause confusion?

Or has the overdraft balance been added to the app before it’s ready, when it will only display a balance based on settled transactions? That would actually be useful because a) it’s providing new information & b) it’s adding clarity about when a user can expect charges…

I’ve not posted this in the Help category because apparently it’s not a bug, it’s expected behaviour & I’m not suggesting a change so it’s not an #ideas, I’m just hoping that this can be clarified…


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