bounce protection

A service provided by most banks that gives the bank the option (but not the obligation) to cover transactions when a customer has insufficient funds in their account. The bank charges an overdraft fee for each check that would otherwise have bounced. The bank may also charge a daily fee for each day that the customer fails to pay off these overdraft balances and bring their account current. Unlike a formal overdraft protection plan, customers are automatically enrolled in bounce protection and must opt out if they do not wish to have this service.