Not quite... Start with an account with a $100 balance. Deposit $1000 in your BOA account this morning; do it in cash, at a teller. Your balance shows $1100, and that’s what the receipt from the teller will show.
Now that same day, 5 hours later, use your debit card to buy something for $900.
BOA will, when processing the transactions will consider the purchase as “earlier” than your deposit, so that you had only $100 when you purchased, meaning they did an “overdraft protection” for the other $800 you didn’t have.
Essentially they would consider all withdrawals happening first thing in the morning REGARDLESS of when they happened, and all deposits as happening at the end of business, regardless of when they actually happened.
That is why there is a sign posted at the teller window and driver thru that reads "Money deposited after 3:00 will not be posted to your account until the next business day.
Again, simple rule, Do not spend more money than you actually have in your account.
I do the ATM and they tell me what funds are available.
capital one got nailed for reporting customer balances on credit cards as their credit limit..i.e. you put $100 on your card this month, they’d report your limit as $100..
this effectively increased your debt ratio and the credit score was lowered since you were “max’d out” on the card..
they lost the suit and now report normally..