On Tue, 18 Sep 2012 19:53:10 -0400, " email@example.com"
Let’s say you buy something with your debit or ATM card but haven’t
been keeping track of how much you have in your account. It turns out
you don’t have enough money in there, which means the withdrawal will
lead to an overdraft. According to the Federal Reserve Board Web site
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 what’s 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
don’t opt in, beginning August 15th, 2010, your bank’s standard
overdraft practices won’t kick in when you charge too much. Instead,
the transaction will typically be declined when you don’t have enough
in your account to cover it. You won’t be charged an overdraft fee,
but you also won’t be able to complete the purchase or withdrawal,
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
don’t want that to happen, contact your bank, but you may find that
you don’t have the option to cancel.
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.
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.
On Sep 17, 12:38 pm, firstname.lastname@example.org 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.
On Mon, 17 Sep 2012 09:38:17 -0700 (PDT), email@example.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.,
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.
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.
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.
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?
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.
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.
America is at that awkward stage. It's too late
to work within the system, but too early to shoot
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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