Banking with a debit card with a large bank...

srkruzich · November 06, 2009, 04:32:03 PM

Quote from: Diane Amberg on November 06, 2009, 04:12:33 PM
Of course banks will do what they can to get money from you, that's how they stay in business.You really have to stay on your toes, read the fine print and ask the right questions. I won't use my card as a debit card for that reason, as well as the fact that for the most part you have no protection from mistakes as with a credit card. Some will think its all unfair,tsome will praise them for being good at business and should be able to charge whatever they can get. I'm such a tightwad I just never get caught with overdraft fees and such because it's just throwing money away and I hate the thought of that.

IF i screw up i accept the fees without question since it was my screwup. But the practice of taking multiple purchases and running the most expensive through first so that you can maximize bounced is wrong and dishonest. They should process each transaction as they are made. Its not like they dont have the ability to do this you know.

Diane Amberg · November 06, 2009, 04:38:09 PM

Then that practice should be made illegal. It's done by a lot of banks. Ethics doesn't seem to mean much.

Maude · November 06, 2009, 05:08:56 PM

Debit cards are just that. When you use them they debit from you account. If you do not have enough money to cover tell me why should the bank let you use their money to run on since you did not have enough of your own. The ideal of the debit card was so a busniness could be guaranteed their money. What your are trying to get by floating your checks to give you more time to deposit money.
Maxine and I use debit cards but we check our account everyday.

sixdogsmom · November 06, 2009, 05:12:26 PM

Diane, I heard somewhere that congress is addressing these issues as well as gouging on the credit cards. Hopefully, they will get something done. It seems that more and more service companies are less and less service and more and more company.

Maude · November 06, 2009, 05:16:21 PM

Maxine just reread your post and it is not the bank that process your spending, it is how the business sends in your charges to the back. You may have ate breakfast at 10:00am but the transaction may not have reached the bank due to the clearing house they use. And as far as overdraft, you have to set the up with the bank. Say you have a house payment of $200.00. Thay will set the overdraft for that amount and not charge you for it just to protect you credit score.
Maude.

Tobina+1 · November 06, 2009, 09:00:48 PM

I've always used small, home-town banks. Although you miss out on the internet features (online bill pay, online transaction tracking, etc), the personal service is the best. One bank I used helped protect you by putting a daily spending limit on your debit card (unless you called in and let them know to remove it for that day). That way, if your card was stolen, they would only be able to spend a certain amount (like $250). That same bank also had a feature that if you had a savings account with them, you could sign up for overdraft protection... which meant they would automatically take the money from your savings account and transfer it to your checking account so you wouldn't get an overdraft from the business. They did charge you for this ($11 I think at that time).

mtcookson · November 06, 2009, 09:02:38 PM

Quote from: Maude on November 06, 2009, 05:16:21 PM
Maxine just reread your post and it is not the bank that process your spending, it is how the business sends in your charges to the back. You may have ate breakfast at 10:00am but the transaction may not have reached the bank due to the clearing house they use. And as far as overdraft, you have to set the up with the bank. Say you have a house payment of $200.00. Thay will set the overdraft for that amount and not charge you for it just to protect you credit score.
Maude.

Actually these days that's not true. They know the instant the debit card is used. They may not actually pull the money out for a period of time but when the card is swiped it checks for an authorization of that amount which the bank's system can see as a charge. I've tried it myself by just authorizing a $1 charge to my card (only authorizing, not actually pulling the money from the card) with our business account and it instantly showed up in my bank account online as being withdrawn so the system knows when you use the card even if the card processor doesn't actually pull the money out.

That's where my other problem is... they have the technology to protect the consumer, not hurt them. They instantly know what is being charged so can easily refuse the charge so that one doesn't overdraft their account. Like I said, Howard State Bank does this with their debit card. If the money is not there it will not allow the card to be charged and that is how it should be in my opinion. Sure, the banks won't make billions off of it but least people would be able to pay their bills again since they aren't being gouged by the bank. The banks like to say the people need to be more responsible to avoid overdrafts but the banks too need more much more responsible so that they don't have to gouge innocent people to keep their profits up.

jprxmkt · November 07, 2009, 08:45:45 PM

Quote from: Tobina+1 on November 06, 2009, 09:00:48 PM
I've always used small, home-town banks.

Me too. Never had a problem yet. They know me, I know them. I wouldn't have it any other way!

Jane · November 08, 2009, 07:38:09 PM

I will never go back to a big bank, we use the Credit Union here in Topeka and never once have we had any problems.
Jane

Joanna · November 09, 2009, 08:03:17 AM

I'm a little prejudiced, but I will always choose a small bank.

Also, folks watch out for changes in all your major credit cards in the next couple months. They are getting ready for new regulations coming soon and are re-adjusting (raising) their fees and interest rates. Don't take any chances, know what's up before you stack Christmas gifts on your card. Even JCPenney's raised my rate.
Card companies usually don't make any money off people like me who pay it off monthly (though they do get a cut from the merchant's share of my purchases); but if you're late or forget even one time, they are legal to charge you the crazy fees and interest you ignored before because you "know" you'll never make that mistake.

Just be aware of your current terms. They (card companies) can change them, with those tiny-print notices in your monthly bill, anytime; and your only option is to agree or to pay off the card and close the account.