<Li> Temporary deposit hold--A deposit made to the account can be placed on hold by the bank . This may be due to Regulation CC (which governs the placement of holds on deposited checks) or due to individual bank policies . The funds may not be immediately available and lead to overdraft fees . </Li> <Li> Unexpected electronic withdrawals--At some point in the past the account holder may have authorized electronic withdrawals by a business . This could occur in good faith of both parties if the electronic withdrawal in question is made legally possible by terms of the contract, such as the initiation of a recurring service following a free trial period . The debit could also have been made as a result of a wage garnishment, an offset claim for a taxing agency or a credit account or overdraft with another account with the same bank, or a direct - deposit chargeback in order to recover an overpayment . </Li> <Li> Merchant error--A merchant may improperly debit a customer's account due to human error . For example, a customer may authorize a $5.00 purchase which may post to the account for $500.00 . The customer has the option to recover these funds through chargeback to the merchant . </Li> <Li> Chargeback to merchant--A merchant account could receive a chargeback because of making an improper credit or debit card charge to a customer or a customer making an unauthorized credit or debit card charge to someone else's account in order to "pay" for goods services from the merchant . It is possible for the chargeback and associated fee to cause an overdraft or leave insufficient funds to cover a subsequent withdrawal or debit from the merchant's account that received the chargeback . </Li>

Overdrafts are normally repayable on which one of the following bases