What is the main function of overdraft protection?

The main function of overdraft protection is to allow transactions that exceed the account balance. This financial service ensures that if a customer attempts to withdraw more money than what is available in their account, the transaction can still be completed. Overdraft protection acts as a safety net, automatically covering the shortfall to prevent rejection of the transaction. This can be beneficial for account holders, as it helps avoid insufficient funds fees and the inconvenience of declined transactions, providing a measure of financial flexibility.

The other options do not accurately capture the essence of overdraft protection. While it does offer some level of prevention against overdrafts by maintaining the ability to complete transactions, its primary purpose is to allow such transactions when the balance is insufficient. Limiting the number of withdrawals and providing interest on excess withdrawals are not functions associated with overdraft protection.