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View Poll Results: Whose fault is debit card overdraft fees?
Evil Bank 13 26.53%
Irresponsible Consumer 36 73.47%
Voters: 49. You may not vote on this poll

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Old 09-09-2009, 10:33 AM
 
Location: Marietta, GA
7,862 posts, read 15,747,158 times
Reputation: 3588

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Small Debit Card Purchases Equal Big Money for Banks - General * US * News * Story - CNBC.com

There are two ways to avoid these fees:

- Add overdraft protection to your checking account. This protection usually comes with no annual fee and you only pay interest if you use and don't payoff within the month

- Keep a better eye on your balance and what you spend and only spend what you have in your account
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Old 09-09-2009, 12:23 PM
 
Location: Sacramento
2,568 posts, read 6,346,470 times
Reputation: 1925
Part of it is education. Most people assume that if they do not have enough money in the bank the would get declined. They should learn all about the card they are using before doing so.
Most people who use debit cards do so because they can not handle a credit card and the banks know this. So they do take advantage.

Both are at fault IMHO.
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Old 09-09-2009, 12:59 PM
 
Location: Sverige och USA
702 posts, read 2,892,789 times
Reputation: 418
Yes, both are at fault. But the banks clearing the largest expense first rather than chronologically makes me lean toward "evil" banks. I don't buy the "consumers want those important expenses to be cleared first" argument since overdraft protection still applies. This way, they get to have more fees.
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Old 09-09-2009, 12:59 PM
 
Location: Warwick, RI
4,011 posts, read 4,779,812 times
Reputation: 6313
There is only ONE way to avoid these fees - don't spend more money than you have. It's that simple! You knew the rules on these cards before you got them, so follow them or pay the fees. Don't blame the banks, they're just doing what banks do, and it's our stupidty that allows them to make billions doing it. TAKE PERSONAL RESPONSIBILITY!!
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Old 09-09-2009, 01:25 PM
 
Location: Near the water
8,229 posts, read 12,412,698 times
Reputation: 3893
Quote:
Originally Posted by treasurekidd View Post
There is only ONE way to avoid these fees - don't spend more money than you have. It's that simple! You knew the rules on these cards before you got them, so follow them or pay the fees. Don't blame the banks, they're just doing what banks do, and it's our stupidty that allows them to make billions doing it. TAKE PERSONAL RESPONSIBILITY!!


You can't immediately lie blame on the consumer/customer. The banks screw up often times enough.
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Old 09-09-2009, 03:01 PM
 
Location: 23.7 million to 162 million miles North of Venus
10,924 posts, read 6,755,229 times
Reputation: 6366
Quote:
Originally Posted by treasurekidd View Post
There is only ONE way to avoid these fees - don't spend more money than you have. It's that simple! You knew the rules on these cards before you got them, so follow them or pay the fees. Don't blame the banks, they're just doing what banks do, and it's our stupidty that allows them to make billions doing it. TAKE PERSONAL RESPONSIBILITY!!
The problem with debit cards and "overspending" doesn't always fall under the consumer spending more money than they have. The consumer may know exactly how much they have and exactly how much they are spending. The sticky point is .. they don't know if a company they are doing business with is putting a hold on a portion of their funds, or, how much of a portion they are holding. For some transactions the businesses can, and do, put a hold on the debit card account for up to $100, more or less.
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Old 09-09-2009, 04:12 PM
 
28,461 posts, read 78,169,047 times
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You know what in an era of iPods with more processing power than some laptops and e-book readers that connect to Amazon servers over the cellular data network the effort required for a useful type of "smart" debit card that could easily list out one's recently cleared purchases seems trivial.

I suspect the security of having some combo of pin/password/biometric measure would be fairly easy to implement too.

That seems like feature I would want before I gave up the safeguards of cash...
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Old 09-09-2009, 05:06 PM
 
Location: Warwick, RI
4,011 posts, read 4,779,812 times
Reputation: 6313
Quote:
The sticky point is .. they don't know if a company they are doing business with is putting a hold on a portion of their funds, or, how much of a portion they are holding.
You're all totally missing my point. As I said before, you all understood the rules before you signed up for these cards. You may not know what company is putting holds on what amounts, but YOU DO KNOW THAT THEY ARE DOING IT, right? That should be all you need to know to take the proper precautions to protect your account!

Keep a cushion in your account that you don't go below for the sole purpose of handling the extra hold amounts (Don't people keep cash balances in their checking accounts anymore?). If this is not practical for you, go to the ATM in the morning and withdraw cash to use to make all your trivial purchases throughout the day. This way, you don't have to worry about the holds, and you only have to keep track of one debit to your account instead of several receipts you've accumulated over the course of the day or days, so it makes it easier to balance your checkbook. This is not hard stuff people!
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Old 09-09-2009, 05:30 PM
 
Location: Sacramento
2,568 posts, read 6,346,470 times
Reputation: 1925
Quote:
Originally Posted by treasurekidd View Post
You're all totally missing my point. As I said before, you all understood the rules before you signed up for these cards. You may not know what company is putting holds on what amounts, but YOU DO KNOW THAT THEY ARE DOING IT, right? That should be all you need to know to take the proper precautions to protect your account!
We who belong to a finance forum know this but the average Joe doesn't.
Have you ever heard of people saying they can not balance a checkbook? I have. Some people are just ignorant and/or stupid. Banks know this and take advantage of that. I think the transactions should be declined if there is not enough money in the account.
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Old 09-09-2009, 06:31 PM
 
660 posts, read 770,969 times
Reputation: 840
Both are at fault .
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