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Thats bs. I've seen hundreds and hundreds, maybe thousands, of debt cards declined for small purchases and they all were Visa or Mastercard.
Also many debt cards have daily and/or transaction limits.
Yes, but did you know why?
There may have already been a problem with that spender.
The question on this thread addresses whose fault it is that these people overdraft. On any single day, someone with little to no money in their bank account can make a purchase using a Visa/Mastercard connected 'check card,' thereby technically overdrafting their accounts bc Visa/MC does not know or have access to the total in their accounts.
Obviously, putting limits on your daily transactions goes a long way to solving the problem. However, you can still spend more than you have and be within your limits.
There may have already been a problem with that spender.
The question on this thread addresses whose fault it is that these people overdraft. On any single day, someone with little to no money in their bank account can make a purchase using a Visa/Mastercard connected 'check card,' thereby technically overdrafting their accounts bc Visa/MC does not know or have access to the total in their accounts.
Obviously, putting limits on your daily transactions goes a long way to solving the problem. However, you can still spend more than you have and be within your limits.
If they don't know the balance then why are they declining the card even for something as small as $25?
Yes of course it's the consumer's fault for overdrawing but there should be a limit on what banks can charge otherwise it borders on extortion.
I've had charges of up to $300 for using $20 that wasn't mine, but a day and a few debit card purchases later and the fees rack up. Yes I should know better, but we're all human and make oversights from time to time, it should not cost us an arm and a leg.
If I overdraw and am charged say $20-30 I'll deal with it but the region of $300 seriously screws with my life. You're looking at rent and bills not being paid because Bank of America is feeling greedy. In my opinion this unacceptable and undeserved. All people are asking for is a punishment that fits the crime.
This thread is pitiful. When you overdraft your account it gives the bank an excuse to screw with you! Just like speeding gives the police a chance to ticket you. Are they taking advantage of your stupidity? Yes! So don't do it.
C'mon, are people seriously making the case that they cannot control their credit card spending, so they use a debit card (without overdraft protection) and even though they claim they know they are responsible, those damn banks are the villains?
Man up some personal responsibility people! If it happens once it is a lesson. If it happens twice it is a learning disorder!
i'm new to the states and to the banking system. when i opened my first checking and savings account and received my first US debit card....i didn't realise that i'm actually able to overdraw from my checking account. oh, and i didn't realise that the debit card is actually linked to my checking account instead of my savings account!
i know i know...i was an idiot! but back where i came from...debit card means you can only charge to your card whatever amount is available in your bank account. and my debit card is actually tied to my savings account.
so i didn't know at first and started swiping my debit card like crazy on the first month of my arrival in the states 'cos we needed a lot of stuffs to settle in as i came with only my clothes (i don't even have winter clothings). i knew i had money in my savings account but i only put in minimal money into my checking account - just enough to pay for my rent.
i had a BIG shock when i went to the bank to wire some money and the lady told me i've overdrawn my account and i had been slapped with $120 ($30 x 4) for overdraft transactions!!!
i eventually got the branch manager to waive off my charges and i also kicked myself for not reading the fineprints on the bank account opening documents! but that was my first culture shock in the USA. and i had asked the bank manager why they automatically allow for overdraft facilities...and she was candid enough to say that that's how banks make money. she also said that some people who don't have money in their accounts would prefer to overdraw and pay the penalty fee than to be in an embarassing situation of their cards being declined! but if i've to pay like $30 for a cup of $3 mocha....that's absolutely ridiculous....my pride/ego/face is not worth that much!!!
nothing helpful...just to share my experience being an ignorant new immigrant
Last edited by bigfatturkey; 04-02-2010 at 07:45 AM..
Actual debit transactions that go directly to the bank can and should be declined if the funds are insufficient.
A couple of years ago I bought something online and discovered it wasn't what it was supposed to be. I called the company and told them I would be returning it. It was all ready to go to the post office on my dime when I check my bank account and find it what for me is deep in the red and start checking.
I figured one payment would be charged and there was money for that. But in the span of six hours THREE payments were charged. The first pretty much wiped out my account, the second was paid with a FEE, and the third refused with new FEE. I called the bank and immediately canceled the card. A few weeks later I got a letter from the company and they had tried to rerun the card three more times the next day but it was refused.
I told them they could have the last payment if they made up the fees and paid them to me. They had a reason to run the first charge, but should not have run any others. I would have still returned it if only one charge had been run. But they decided to do an end run on the rest.
I deal more carefully now and use paypal almost all the time. Legit companies accept it and there can be no repeat charges that way. But I blame the bank far more than the crooked businessmen. If there was not enough money to pay a charge it SHOULD NOT BE ACCEPTED. If I use my card as a debit card at the store and am a penny shy, it doesn't go through. If someone runs a mastercard charge, they treat it as if it was a credit card.
The new laws have addressed some of this, but I'm sure banks will find a way around it. I can't get a credit card. I don't WANT a credit card either. I manage my small income fine but have seen too many people fall for the temptation of credit. I believe you should not spend what you do not have. That is why many many people use debit cards and the banks have found a great way to fleece the customer further.
It was only 300 dollars but for me it was a LOT of money and set bills behind the next month. And further than that. I still have the doorstop in the closet and have been tempted to send it to them anyway.
I realize that people don't always watch their balance but there should not be penalties for refusal of a charge. Let the bank keep track but its all done electronically and they already do that. But if you use a debit card over a credit card it usually means that for some reason you can't get one. There can be lots of reasons, from temptation to belief to level of income to knowing you can't control yourself. But the spirit should be honored by banks by simply saying the card is refused. Maybe that creates a problem for the customer but that makes it there problem without making banks rich.
Banks often target customers who can least afford such things which only gets them into more trouble as the fees pile up and their interest rates skyrocket. I thought this was interesting-
"Consulting firms are telling banks to hone in on the financially precarious to sign back up for costly overdraft protection that will only further erode their bank account.
Studies have shown that those who frequently overdraft are most likely to be lower-income, single, non-white renters."
Banks often target customers who can least afford such things which only gets them into more trouble as the fees pile up and their interest rates skyrocket. I thought this was interesting-
"Consulting firms are telling banks to hone in on the financially precarious to sign back up for costly overdraft protection that will only further erode their bank account.
Studies have shown that those who frequently overdraft are most likely to be lower-income, single, non-white renters."
Yup and why might that be you suppose ?
Why do people gladly take what isn't theirs and not worry until they are called upon to pay it back ? Probably boils down to simply greed.
The poor are more likely to take "extra" money than those that do not need it.
Ultimately though it is their own fault. No one forces them to take it and they are well aware they are taking more than they have in the account when they are doing it.
These days everyone's a victim...no one has personal responsibility anymore.
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