Seeing strange charges on your bank or credit card statement can be confusing. One charge that often confuses people is “TOT ODP SWP CR MEMO.” You’re not the only one scratching your head over what this means!
Don’t worry – we can explain it. TOT ODP/SWP CR MEMO is shorthand that banks use for certain types of transactions.
You dont need to be panic, no one hacked you or stole your money. This isn’t fraud or a scam. It just means you messed up somehow. We will discuss why it is happening, how you can improve it, and how to prevent it from happening again.
What Does TOT ODP SWP CR MEMO Mean?
Chase often uses confusing shorthand on statements that frustrates customers. Seeing a TOT ODP SWP CR MEMO on your bank statement can be confusing and worrying, especially if it makes your balance go negative.
But don’t panic – this charge is related to overdraft protection transfers. It means money was transferred from your savings account to cover a purchase from your checking account that would have overdrawn your checking balance.
So the negative amount on your checking is the overdraft, and the transfer from savings covers it. This is cheaper than a regular overdraft fee.
However, it only works if your savings account has enough money to fully cover the overdrawn checking amount. If savings is too low, you’ll be charged the full overdraft fee instead.
Banks limit how often you can do these transfers, like Chase allowing just 6 per month. After that, you may have to upgrade to an account with higher fees.
The main thing is to watch your checking and savings balances closely. That way you can avoid overspending from checking. If you know you’ll come up short, look into getting a cash advance from an app to cover purchases and dodge fees.
In short, TOT ODP SWP CR MEMO means an overdraft in checking was covered by transferring funds from savings.
Why Does Chase Make These Overdraft Transactions?
Chase offers overdraft protection to cover purchases when your checking account balance is too low. This links your checking and savings accounts.
If you sign up, Chase will approve debit card transactions, bill payments, and checks that overdraw your checking account. But ATM cash withdrawals are not covered.
When a purchase overdraws your checking account, Chase pays for it anyway. Then they immediately transfer money from savings to bring your checking balance back to $0.
This transaction leads to the TOT ODP SWP DR MEMO appearing in your savings account, while a corresponding TOT ODP SWP CR MEMO is generated in your checking account.
If there’s enough in savings to cover the overdraft, you pay no overdraft fee. But Chase charges $5 if you make over 6 savings transfers per month.
What if savings doesn’t have enough to cover the overdraft? Then you can get hit with fees.
Chase pays the overdraft transactions, leaving your checking account negative. They’ll transfer any available savings funds to reduce the negative amount.
But if your checking ends the day more than $50 negative, you get a $34 overdraft fee for each overdraft transaction over $5. You can get up to 3 of these $34 fees per day. So a few small purchases can quickly turn into $100+ in overdraft fees.
The main point is overdraft protection helps avoid fees but can backfire if savings is too low to fully cover checking overdrafts.
Why Banks Overdraft: Knowing the Common Causes
- Not having enough money in your account to cover purchases
- Bills you set up to pay automatically without remembering the payment dates
- Surprise expenses like medical bills or car repairs
- Money you deposited that hasn’t officially cleared yet
- Fees the bank charges for wire transfers or account maintenance
- Ongoing subscriptions you forgot to cancel
- Your paycheck being deposited later than usual
- The bank temporarily freezing deposited funds before clearing
- Not setting up overdraft protection to transfer funds from savings
- Taking out cash from an ATM without checking your balance
- Writing multiple checks when your account is low
- Income that fluctuates a lot like tips or commission.
Overdraft Fees
When you get a TOT ODP SWP CR MEMO, it means you overdrew your account. This usually comes with a fee that acts like a penalty or interest on the money you borrowed by overspending.
The overdraft fee gets taken directly out of your account balance. So not only do you owe the money you overspent, but you get charged an extra overdraft fee on top of it.
These fees can add up quickly and take a chunk of money out of your account. A single overdraft transaction may cost $30-40 in fees depending on your bank.
It’s important to understand that overdrawing your account isn’t free money – you have to repay the amount plus the fee. Keep a close eye on your balance to avoid spending more than you have available. That way you can steer clear of costly TOT ODP SWP CR MEMO charges and overdraft fees.
Monitoring your account regularly and making careful spending decisions can help protect your hard-earned money. Overdraft fees are an expensive penalty, so be proactive in avoiding them.
Is it Possible to Remove TOT ODP SWP CR MEMO Charge?
Maybe, if the bank wants to be flexible. Banks are more likely to waive fees for long-time customers with great credit history and few overdrafts.
But if you have poor credit or frequent overdrafts, the bank probably won’t budge. Multiple overdrafts could even lead them to close your accounts or take legal action.
The best policy is to avoid overdrafting in the first place. Track your account balance closely so you don’t spend more than you have. That way you can prevent unexpected fees instead of trying to remove them later.
You need to keep an eye on your balance and spend prudently to avoid TOT ODP SWP CR MEMO charges. Don’t rely on getting fees waived – it’s better to not overdraft at all. Maintaining good credit and rarely overdrawing helps show the bank you’re responsible.
If you see a confusing TOT ODP SWP CR MEMO charge, don’t panic. Call your bank’s customer support for help. Explain it’s your first overdraft. They may refund the fee, especially if you have good credit.
But repeated overdrafts can cause bigger issues. If you get lots of these charges, your bank may limit overdraft transfers or even close your account. This damages your credit and finances.
To avoid problems, be responsible with your money. Track spending to maintain a positive balance. Overdrafting frequently hurts your credit and costs you fees.
The best approach is being proactive. Monitor your account balance closely. Spend less than your available funds. If issues come up, communicate with your bank right away.
