Which of the following is a feature of overdraft processing?

Overdraft processing allows transactions to proceed even when there are insufficient funds in an account, which is common practice among many banks. When a customer attempts to make a purchase or withdraw funds without having enough money in their account, the bank may still cover that transaction. However, this service typically comes with a fee.

The reason this answer is correct lies in the nature of how banks manage overdrafts. Even if they honor the transaction, they might charge an overdraft fee, which can vary by institution. This fee can occur regardless of whether the bank chooses to cover the transaction or not. Many customers may assume their transactions will go through without penalty, but understanding that a fee may apply is crucial for financial planning and literacy.

In contrast, some choices present scenarios that are not characteristic of typical overdraft policies. For instance, the idea that no fees would ever be charged or that all accounts would see transactions denied with insufficient funds misrepresents standard banking practices. Additionally, each bank has its own unique overdraft policies, which can differ significantly among institutions.