[ahoyhere]

In Austria, you go negative, it's a loan. No penalties, just interest, if you don't fill it back up quickly. Reasonable interest.

That seems like the sanest option to me. (I don't think it happens very often, either - Austrians don't use credit and they have a lot of savings on average.)

[patio11]

You can get this in the United States, too. Get a checking account with ING Direct. I don't make a habit of overdrafting, but it has saved my bacon a few times when e.g. I forgot that a credit card payment and estimated tax payment both happened the day before my client's check cleared.

[bld]

US service members or their families can get the same with USAA. You can choose another account, credit card, or line of credit.

[jules]

I can choose whether I want automatic loans or failed transactions.

[StavrosK]

That's also much better than the overdraft ripoff, but I'd much rather not owe anyone. I guess the best thing would be for the bank to offer that option when opening the account.

[eli]

Isn't that exactly what the new CARD Act requires all US banks to do?