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 except ATM withdrawals or 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 be eligible:
- Make at least 5 Varo Visa® Debit Card purchases in each calendar month; and
- Receive payroll or government direct deposits totaling at least $1,000 each calendar month into your Varo Bank Account.
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. You won’t be able to overdraw by making ATM withdrawals or Over the Counter withdrawals.
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.
Why isn’t No Fee Overdraft working at the gas station?
Some gas stations will check your balance at the pump to make sure you have enough to fill up. For the best experience getting gas, pay for the amount of gas you want with a cashier.
See the full terms and conditions here.