How does Varo Money's overdraft protection work?

Varo Money offers an overdraft protection feature known as Varo Advance, which functions by providing eligible customers a way to cover unexpected expenses without the typical overdraft fees. Customers who have active Varo bank accounts and meet certain criteria - such as regular direct deposits - can qualify to receive a small cash advance to help cover shortfalls until their next paycheck arrives. This feature is designed to be transparent and easy-to-use, with the expectation that the borrowed amount will be repaid when the customer receives their subsequent deposit. By offering this service, Varo aims to provide a safety net for users, helping them avoid the high costs associated with traditional bank overdrafts.