What is No Fee Overdraft and how do I use it?
No Fee Overdraft is a feature in the Varo app that lets you overdraw your Varo Bank Account up to $50 with no fees or interest charges. No Fee Overdraft can be used for any transaction made with your Varo Visa® Debit Card, including ATM withdrawals and Over the Counter withdrawals. Overdraws greater than $50 will be declined, but still with no fee.
To use No Fee Overdraft, you need to be eligible first. We’ll send an email letting you know once you are. If you’re not eligible or don’t have the feature turned on, charges that would otherwise overdraw your account will continue to be declined with no fee.
How to be eligible
You must meet both of these requirements to qualify for No Fee Overdraft:
- Make at least five Varo Visa® Debit Card purchases in each calendar month, AND
- Receive total payroll or government direct deposits of $1,000 or more into your Varo Bank Account or Varo Savings Account in the same calendar month. Payroll transfers via Visa Direct to the Varo Visa Debit card from Uber, Lyft, Doordash, Postmates, and DailyPay are considered payroll direct deposits.
Once you qualify, enroll by turning on No Fee Overdraft in the app. See full terms and conditions here.
How do I turn on No Fee Overdraft if I’m eligible?
In the app, tap Varo Bank Account > No Fee Overdraft. You’ll need to opt in to No Fee Overdraft and accept the terms and conditions to be eligible to overdraw your Bank Account up to $50 by using your Varo Visa® Debit Card.
How do I repay?
Make any deposit to your Varo Bank Account and it’ll be automatically applied to your negative balance. For example, if your balance is $10.00 and you make a $30.00 purchase, your account will be overdrawn by $20.00. Your balance would then be -$20.00 and you’d have 30 calendar days to repay the $20.00.
You must repay the overdraft within 30 calendar days from when your balance first goes negative, otherwise we will cancel your enrollment in No Fee Overdraft and you will no longer be able to overdraw your Varo Bank Account.
See the full terms and conditions here.