How was the ~800% interest rate calculated? $245 / $35.18 = 696% daily interest rate, which annually is ... well, it's incomprehensibly huge.

Anyway, overdraft fees aren't loans, they're fees, so it doesn't make a whole lot of sense to think in terms of the APR.

I will agree with this -- that sort of transaction sorting is a terribly nasty business practice.

Will any banks simply deny the charge if you don't have the funds? That's what I'd prefer.