OT - Gas Prices. Now I have to carry cash.

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On Tue, 18 Sep 2012 19:53:10 -0400, " snipped-for-privacy@att.bizzzzzzzzzzzz"

http://www.bbb.org/us/article/new-overdraft-rules-for-debit-and-atm-cards-21009
Lets say you buy something with your debit or ATM card but havent been keeping track of how much you have in your account. It turns out you dont have enough money in there, which means the withdrawal will lead to an overdraft. According to the Federal Reserve Board Web site http://www.federalreserve.gov/consumerinfo/wyntk_overdraft.htm there are usually two ways that banks deal with an overdraft:
Standard overdraft practices. Your bank will cover your transaction for a flat fee of about $20-$35 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your bank will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee. In this example, if the fee your bank charges for its standard overdraft practices is $30, you will pay a total of $60 in fees on $100 in overdrafts.
Overdraft protection plans. Your bank may offer a line of credit or a link to your savings account to cover transactions when you overdraw your account. Banks typically charge a fee each time you overdraw your account, but these overdraft protection plans may be less expensive than their standard overdraft practices.
So whats different under the new rules? Basically, your bank has to give you the option to choose how the bank will deal with an overdraft from you. In the past, some banks automatically enrolled you in a standard overdraft program when you opened an account with them. Now, the bank has to ask your permission and you have to opt in. If you dont opt in, beginning August 15th, 2010, your banks standard overdraft practices wont kick in when you charge too much. Instead, the transaction will typically be declined when you dont have enough in your account to cover it. You wont be charged an overdraft fee, but you also wont be able to complete the purchase or withdrawal, either.
If you have an existing account that was opened any time before July 1st, you are supposed to get a notice from your bank about their standard overdraft practices, asking if you want them to continue or not. If you open an account after July 1st, you will be asked if you want to opt in or out when you fill out the initial paperwork. Whichever way you decide, you can change your mind at any time.
Warning: If you write checks or set up automatic bill payment from your checking account, the new rules do not cover checks or automatic bill payments. Your bank can still automatically enroll you in their standard overdraft practices for those types of transactions. If you dont want that to happen, contact your bank, but you may find that you dont have the option to cancel.
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plans. Your bank may offer a line of credit or a

I like my credit union as I have the overdraft that transfers money out of my other accounts without any charge. If those accounts default for any reason, I have a $ 5000 line of credit that will cover anything up to that ammount also. Still without any fees except the normal interist charge if that line of credit ever kicks in. Then it is just normal interist rates.
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On Tue, 18 Sep 2012 22:59:00 -0400, "Ralph Mowery"

Banks have done that since the great flood, too. I agree, though. CUs are the place for people to keep money.

Sure, so do we, though we haven't overdrafted in at least thirty years.
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OK.
That's been normal for at least forty years.

So it's not as simple as BobH stated.

Exactly. It'll make a mess of a checking account. Why would you have a checking account if you never wrote checks?
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snipped-for-privacy@att.bizzzzzzzzzzzz wrote:

Since 2010. Sorta: http://www.consumerreports.org/cro/magazine-archive/2010/february/money/debit-card-over-draft-fees/overview/debit-card-over-draft-fees-ov.htm
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Except it can.
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If you don't mind punching in your PIN at the pump, you can use your DEBIT card and get the cash discount. Around here it's 10 cents a gallon, cash or debit.
Use your debit card as credit, and they hit you up for the credit price.
I thought charging extra for credit was ILLEGAL.
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On Sep 17, 12:38pm, snipped-for-privacy@gmail.com wrote:

Not at the stations I use. My debit card can be entered as Credit or Debit. Many of the pumps I use read it as credit and simply authorize the purchase as soon as it's inserted. Some of them don't even ask for a zip code or anything.
If I want the pump's price to change to the cash price, I have to see the cashier. Luckily, the station I use most (the starting price is cheaper than most even before the discount) only sells gas, so I don't have to wait for people buying food, etc.

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On Mon, 17 Sep 2012 09:38:17 -0700 (PDT), snipped-for-privacy@gmail.com wrote:

I doubt it is illegal in most places but I would not want to say what every legislature might do. It was a Visa/MC policy. If you want to have their credit card service, you couldn't charge extra for it. These days that might be unenforceable. The station might just say bye.,
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I did not think it was illegal, but was a deal with the credit card companies. In other words, you could charge more or give a cash discount if you wanted to, but if the credit card companies found out about it,they would not let you take their credit cards any more.
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Ralph Mowery wrote:

Correct - there is no "law" governing this.

Merchant agreement.

Technically - not correct.
You *can't* add any additional charges (to the sticker price) if the buyer pays with a credit card - but you CAN give a discount if they buyer pays with cash.
Credit-card companies don't want retailers to penalize credit-card users, so they write that into the merchant agreement.
But CC companies can't do anything about retailers giving a discount-at-the-register for people who pay in cash.
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the cost to take cash is likely more than the cc fee
securing handling counting taking to bank likely by armored car all cost money
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On 9/17/2012 4:33 PM, bob haller wrote:

Thats just the FUD that has been used by the credit card companies for many years. A family member has a very responsible job at a large organization (over $14 billion last year) that has good analytic systems in place and they know it costs considerably less for them to handle cash than credit cards.

But the cut the CC companies gets is a lot more.
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Then why do they offer a discount for cash? Seems kind of silly to offer a discount for the method that costs them the most. Wouldn't they offer the discount on the cheapest method to entice customers to use it...or offer no discount at all?
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On Mon, 17 Sep 2012 22:31:33 +0000 (UTC), DerbyDad03

Because some people, and some businesses, just see the IMMEDIATE cost and get their back up about paying to use the credit card - not thinking about the time and money involved in handling the cash.
If a company does a lot of other cash business the incremental cost is low - but switching from an all credit card model to an all cash model does NOT make sense.
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On 9/17/2012 6:52 PM, snipped-for-privacy@snyder.on.ca wrote:

Or they know their costs and know that the sale involving a tribute to the banks/credit card companies will yield them less than the same sale with a cash discount applied.

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wrote:

Most of the money isn't made at the gas pumps anyway, it made at the convenience shop. Get a certain number of people in because of the "deal" on gas and they spend more inside. Especially since you HAVE to come inside to pay.
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wrote:

I never understood why a convenience store would want you to pay at the pump. Once inside, you may grab a soda, coffee, etc. The place I get most of my gas for the past 10 years I've never gone inside at all. Never spent and extra dime.
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Especially since 99% of the stuff in the convenience store qualifies as an impulse purchase. I buy something extra just about every time I go to the gas station. Lottery tickets (g).
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I'm guilty of buying gas long before I need it, to justify that lottery ticket.
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