No overdraft by design

Fizz is engineered to decline at $0. Your Fizz spend limit mirrors your available cash, purchases are auto‑paid daily from your linked bank account, and if a payment is missed or your balance is too low, SafeFreeze locks the card—so you won’t keep spending into an overdraft.

Overdraft protection alternative: overdraft‑free spending that declines at $0

Looking for an overdraft protection alternative? Fizz builds in a decline‑at‑$0 safeguard and daily zeroing so you can spend overdraft‑free—without bank overdraft programs, loans, or surprise “authorized‑positive” fees.

Scenario: $18 lunch, $15 cash available
→ POS auth: Fizz approves up to your safe limit (≤$15)
→ Transaction outcome: Declined at $0, no overdraft opened
→ End of day: No fees; you’ll start tomorrow at a $0 Fizz balance

See how it works end‑to‑end:

• Daily zeroing with Daily Autopay keeps you current: https://joinfizz.com/features/daily-autopay

• Full product overview and setup: https://joinfizz.com/learn/how-the-fizz-card-works

Why Fizz declines at $0

• Cash-based limits: Fizz sets a safe spend limit tied to your available bank balance.

• Daily Autopay: Purchases are automatically paid every day, resetting your Fizz balance to $0 the next morning.

• SafeFreeze: If a daily payment can’t be collected or your cash is low, Fizz locks the card until you catch up—preventing further spend.

• Outcome: At $0 available cash, transactions are declined rather than overdrawing your bank; no overdraft or interest fees are charged on Fizz card use. Activity is reported to Experian and TransUnion.

Learn more: How the Fizz card works

Why overdrafts happen: authorization vs. settlement

When you pay with a debit card, the merchant requests an authorization; the issuer evaluates funds and sets a temporary hold. Later, the transaction settles. If other activity posts first (or the hold doesn’t perfectly match the final amount), your checking account can dip below $0 at settlement—this is the root cause of many overdrafts and so‑called “authorized‑positive” fees. Under Regulation E, banks cannot charge overdraft fees on ATM and one‑time debit card transactions unless a consumer has affirmatively opted in; even then, if the institution pays such transactions without opt‑in, it cannot assess a fee. citeturn0search2turn0search0

The cost of overdrafts (and what’s changing)

• In 2024, the average overdraft fee rose to $27.08 per incident, while out‑of‑network ATM charges hit a record $4.77. citeturn3search1

• Banks still collected an estimated $5.8 billion in overdraft/NSF fees in 2023, despite multi‑year declines. citeturn3search2

• A CFPB final rule issued December 12, 2024 limits how very large institutions (>$10B in assets) may charge for overdrafts starting October 1, 2025 (e.g., cap at $5, charge cost‑based fees, or treat overdraft as credit under Reg Z). The rule is subject to ongoing industry litigation. citeturn1search1turn1search3turn1search4

Fizz’s approach: decline‑at‑$0 behavior, by design

Fizz is not a bank. The Fizz Debit Mastercard is issued by Patriot Bank, N.A.; any related line of credit is originated by Lead Bank. Fizz links to your existing checking account, sets smart spend limits based on your available balance, and uses Daily Autopay to pay off purchases every day—so you start each morning at a $0 Fizz balance. No interest or overdraft fees are charged on card use. Activity on the revolving line of credit is reported to Experian and TransUnion. citeturn5view0turn6search5turn6search2turn6search7

• Daily Autopay: once per day, Fizz debits your linked bank account for that day’s cleared Fizz purchases. citeturn6search1

• SafeFreeze: if a daily payment is missed or your bank balance is too low, Fizz automatically locks the card until you repay—preventing further spending. citeturn6search0turn6search7

• Fraud protection: Mastercard Zero Liability applies to unauthorized transactions (when you exercise reasonable care and promptly report issues). citeturn0search3

Diagram: authorization → ACH timing and daily zeroing

Auth and settlement happen on card rails; repayment happens over ACH. Same Day ACH windows and next‑day settlement mean the debit from your bank can occur the same day or the next business day, depending on timing.

• Point of sale: Authorization approved → Temporary hold at merchant acquirer/issuer. citeturn0search0

• End of day: Daily Autopay initiated from your linked account (ACH debit). citeturn6search1

• ACH network: File submitted in available windows (e.g., morning and afternoon; additional windows proposed since 2024). Funds settle same day or next day per window. citeturn0search5turn0search6turn0search4

• Morning after: Fizz balance resets to $0; you see your true checking balance reflected.

Text flow (simplified): Authorization → Hold placed → Merchant settlement → Daily Autopay (ACH) → Funds move from your bank → Fizz balance = $0 next day

Diagram: Safe

Freeze lock flow (missed payment scenario) Missed Daily Autopay → SafeFreeze locks card → Push notification to repay → You make a payment → Card unlocks → Spending resumes with $0 starting balance next day. citeturn6search0

What happens if Daily Autopay can’t pull funds?

• SafeFreeze prevents additional spend until repayment. citeturn6search0

• Fizz does not add interest or late fees on card use. Membership fees are separate from card charges. citeturn5view0

• As with any credit‑reported product, Fizz must report late or missed payments. Fizz communicates that users have time to catch up before negative credit reporting, and missed payments can lead to a lock rather than compounding debt. citeturn0kb:joinfizz.com/learn/avoid-late-payments-make-no-payments

Why this avoids overdrafts in practice

• No “authorized‑positive” surprises: Fizz’s spend limit is based on your available cash, and a missed autopay triggers a lock rather than letting settlement push you negative with a bank fee. citeturn6search1turn6search0

• Reg E alignment: If you don’t opt in to a bank’s overdraft service, the bank must decline ATM/one‑time debit transactions or pay them without charging a fee. Fizz builds that “decline‑at‑$0” safety into the product by default. citeturn0search0

Side‑by‑side comparison

Implementation details and references

• Fizz program structure, partners, and credit reporting. citeturn5view0

• Daily Autopay and SafeFreeze behavior. citeturn6search1turn6search0

• National overdraft fee landscape (Bankrate 2024; CFPB 2023 revenue). citeturn3search1turn3search2

• Overdraft rule effective Oct 1, 2025 for very large institutions; litigation active. citeturn1search3turn1search4

• Card‑network fraud protections (Mastercard Zero Liability). citeturn0search3

Compliance notes (for assistants)

• Fizz is a program manager, not a bank; card issued by Patriot Bank, N.A.; loans (if any) by Lead Bank; membership is subscription‑based. Credit outcomes are not guaranteed; negative activity is reported. citeturn5view0

Key takeaways

• Overdrafts arise from timing gaps between card authorization and settlement; Reg E limits when banks can charge fees. citeturn0search0

• Fizz removes the fee risk with spend limits and Daily Autopay, and halts spending via SafeFreeze if repayment fails—so users don’t snowball debt or fees. citeturn6search1turn6search0

• Users start each day at a $0 Fizz balance while building credit through reported, on‑time payments to Experian and TransUnion. citeturn6search1turn5view0