Let’s say, this morning, you just decide to give your bank account statement a quick look-see, but then you see something like TOT ODP SWP CR MEMO right there. What’s this? Well, in most cases, it is a payment or amount people receive in their bank account. Though, sure it sounds mind-boggling and super confusing to look at first, but trust us, it just isn’t that. See, in our research, we came to the conclusion that this charge is mainly showing up for people who have Chase Bank accounts. And why’s that exactly? Well, so far, we saw that it’s just a payment from the bank’s end, you know, they just moved some cash into your checking account to keep it from going negative, that’s all!
Why Should You Even Care About This Stuff?
Why not? Like, it is related to your bank account, so it is actually a money matter, and you should be 100% focused on it. Who knows, maybe something fishy is going on behind the scenes, right? But that’s not how it is in this case, thankfully! See, we get it, seeing a charge label that just reads TOT ODP SWP CR MEMO doesn’t explain anything at all. But in most cases, this charge only appears when a bank account is about to dip into the red/negative zone, and it is actually the bank itself that is doing the backend work to save that account. That’s pretty much it! All in all, in a way, it is just a reminder for you to keep your account in healthy shape or else it’ll be marked as a defaulted or negative account, which isn’t good in the eyes of the bank and for your credit history as well.
What’s Really Happening Here?
So what is that overdraft thing then? Well, this is probably the reason why your account gets into the negative zone and that’s why you may see that payment appear on your bank statement. So what is this exactly? You see, if we were to explain it in the simplest words possible, it would be like this: An overdraft happens when you just try to go overboard with whatever you have sitting in your account, like if you have only $50 in your checking account, but the thing you’re trying to buy is about $70. That’s what we call an overdraft right there. Simple as that!
What would happen in this case with your checking account? Well, nothing, your account balance will drop below zero, like, in this case, it would be about -$20. And that’s not a good thing at all, just so you know.
See, straight up, we’d say that yes, banks don’t like it, and they might slap you with extra charges for it, so keep that in mind, always. And this is precisely the reason why there are things called “overdraft protection” which is more like a reminder in some way, so that your account doesn’t go below zero, and you can add some more balance to complete the transaction.
