Discover Launches Balance+: A Fee-Free Overdraft Protection Feature for Debit Card Purchases

July 8, 2024

Today Discover announced Balance+, an innovation for its Cashback Debit Checking account, providing customers with fee-free discretionary overdraft coverage applicable on everyday debit card transactions. With many Americans continuing to live paycheck-to-paycheck, this offering highlights Discover’s continued efforts to help address overdraft fees–a key customer pain point–and allows customers to seamlessly manage their money without the stress of not being able to cover everyday purchases.

With Balance+, Cashback Debit account holders can overdraw their checking account up to $200 on debit card purchases with no fees. To qualify for Balance+, an account must be in good standing with a balance greater than $0, and account holders must receive at least one qualifying direct deposit of $200+ per month for the last two calendar months.

Balance+ complements Discover’s existing overdraft coverage including fee-free Overdraft Protection, which automatically transfers money from a linked Discover account to cover transactions when an account is overdrawn. While Balance+ covers debit card purchase overdrafts, Discover’s Overdraft Protection covers checks, online bill payments and ACH transfers initiated at another bank. Cashback Debit customers can enroll in both Balance+ and Overdraft Protection to ensure different types of transactions are covered.

“With Balance+ we are giving our customers peace of mind that Discover has their back when they use their debit card for their everyday necessities,” said Ram Subramanian, vice president, chief marketing officer of Discover Bank. “This is a natural extension of our commitment of offering the most rewarding banking experience without having to worry if you make a mistake.”

In addition to Balance+, Discover has continued to enhance Cashback Debit to provide a better experience for customers. Recent enhancements include:

  • Add Cash: Provides contactless debit card customers the ability to add money to their account at any Walmart location in the U.S., in minutes – with no fees.
  • Direct Deposit Switch: Allows customers to seamlessly setup or switch their payroll direct deposit instructions securely via their Discover mobile app or through their online portal, providing access to Early Pay (up to two days earlier).
  • Secure Account Linking: Gives customers a seamless way to link external accounts to their Discover Bank account.

The new features build on the existing benefits of Cashback Debit, including 1% cash back on up to $3,000 in debit card purchases each month, no fees for monthly maintenance, insufficient funds or overdraft, fraud protection on debit card purchases and access to 60,000+ fee-free ATMs across the U.S.

“Cashback Debit offers consumers a wide range of benefits and is one of the only checking accounts to offer cash back rewards,” continued Subramanian. “We’re excited to continue building on this product to provide straightforward and meaningful benefits that puts the consumer in control of their finances.”

For more information, visit

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover® card, America's cash rewards pioneer, and offers personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network® comprised of Discover Network, with millions of merchants and cash access locations; PULSE®, one of the nation's leading ATM/debit networks; and Diners Club International®, a global payments network with acceptance around the world. For more information, visit

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Source: Discover Financial Services