why do i have so many duplicate debit card transactions in my bank acct's recent activity page?

Question

it lists pending transactions for the same amounts and from the same businesses that are already in the cleared transactions section and it's affecting the running balance column. why?

also now i clicked on the option to show transactions for the past 2 wks and they're not showing as duplicates anymore and the running balance is accurate but my available balance is still the same from when all those transactions were duplicated.

Answer 1

This is a little understood system called "authorization."

Whenever you use a debit or credit card, there are at least 2 steps - authorization and the actual transaction.

The authorization is where a company tells the institution that they want X amount of dollars. That amount is then "reserved" for the company based on the company submitting the signed receipt for the transaction. If the company does not submit a receipt on an authorization within 30 days, the authorization becomes void, and you get use of the money back.

Some companies (hotels, car rentals, etc...) do DUEL authorizations. That is, when you rent the car or check into the hotel, they place a reserve on your card to make sure you have the available funds. The problem is, they don't clear this reserve before actually charging you for the service. So renting a car can cost you TWICE what you actually pay, until the first "reserve" is reversed - usually in a couple of business days.

The bank will charge you overdraft fees if authorizations exceed available funds, even though they are never actually "out" the money. It's usually better to make such transactions with a credit card, where you never actually lose use of your "real" money.

If you notice retailers putting these DUPLICATE holds on your money, there's really nothing you can do, because it's all legal and within their rights. They don't actually take money out of the account for the duplicate authorization. However, if I found out a retailer was doing this, I would stop shopping there with my debit card and just write them a check.

Answer 2

[The bank will charge you overdraft fees if authorizations exceed available funds, even though they are never actually "out" the money]

My bank does not do this. I really don't think banks can legally do this. I was talking to my bank manager the other day. If you get double authorization and it below your account balance. It will appear as an overdraft charge. However, it should be remove once the transactions are hard posted.

I have read there are lawsuits going on about some banks that have been doing this.

You must of been reading it the day your banks is doing the hard postings. Those duplicates will be removed in a day or so.

She told me the only time to be concerned is when the two transaction are actual hard posted. Then you can dispute and get your money back including the overdraft fee.

That why I call my bank and see what available balance I can use.

Answer 3

I have had that happen as well. Call your bank tomorrow and ask for bookkeeping and they will fix it.