If you receive your paycheck as direct deposit and you have recurring electronic debits that occur at the same time, your bank (like National City Bank) takes the debits FIRST and then the credits so that you could be potentially overdrawn. Then, they nail you with high overdraft fees, one fee per incident. When asked why I was overdrawn for 2 Bill Pay (electronic bill payments) and knew that my paycheck was electronically deposited before the debits, National City Bank of Indiana advised me that their "system recognizes debits before credits" and therefore you are overdrawn and charged the high fees per incident. This truly bites and I'll bet most of you are not aware of this practice. Needless to say, I have adjusted my recurring Bill Pay to compensate. Please let me know I am not the only one aware of this practice!
2007-03-07 01:01:07 · 8 answers · asked by PG-D 2 in Business & Finance ➔ Other - Business & Finance
The bank my wife works for considers all transactions done on the same day to be done at the same time. This sort of thing never happens there.
Long Live Jambi
2007-03-07 01:04:46 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Debits showing up before credits is a normal occurence.. This is not to do with the banks but with the merchants... The retailers you use your credit card on will ussually process credit cards after a certain period (2-7) days...
A practice that worries me most is actually how the banks place those transactions, If your account has insufficient funds, they post the largest transactions fast so there isn't much money left in your account for the other transactions... Then you get hit with as many overdrafts as they want.... It is possible for a credit purchase to show up sooner than a debit so long as the credit sale is larger than the debit... Banks are clever in bending the law... be careful...
2007-03-07 12:44:33 · answer #2 · answered by Redeemed 3 · 0⤊ 0⤋
That is not correct and I would ask to speak with the supervisor of whomever you spoke with at the Bank as they are feeding you a line because they either don't want to take the time to investigate what the real problem is or don't want to hassle with reversing overdraft fees.
I could be you misunderstood if say your check is to be deposited on a Friday but you employer sends the EFT file over and it shows "pending" Thurdsday night but your Bill Pay Debits hit that night also...the deposit would not actually be credited until Friday night and any debits that hit your account between Thurs night and Friday could not draw against that amount.
2007-03-07 01:11:53 · answer #3 · answered by bottleblondemama 7 · 0⤊ 0⤋
Not every bank does this, close your account and find a new bank. I'm so glad my bank doesn't. I forgot to make a deposit and realized the account was about to be overdrawn. It actually was, but since I made the deposit before the end of the day everything was okay. Whew!!!
2007-03-07 01:11:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yeah, I knew about that. I've also noticed that if I make a payment on my credit card, it generally takes a day or two before the payment will show up. Which means if I buy and pay off (even on the same day) anything near the date the interest accumulates, I get hit with interest. That always annoys me, because I bend over backwards to make sure my balance is always zero and yet they manage to gouge me.
So then I paid too much back on my credit card one day, and they owed me like $10, and they whined and whined at me until I removed that amount.
2007-03-07 01:06:37 · answer #5 · answered by mikah_smiles 7 · 0⤊ 0⤋
Depends on your bank. If you live in central Indiana, First Indiana Bank recognizes overdrafts at the end of the business day, so even if your debits get recognized first, as long as the credit was recognized the same day, you're fine.
2007-03-07 01:04:39 · answer #6 · answered by togashiyokuni2001 6 · 2⤊ 0⤋
before everything you somewhat shouldn't say the monetary business enterprise being that the monetary business enterprise isn't responsible on your mastercard it somewhat is Visa. relatively Visa took your money. And being a monetary business enterprise isn't approximately question the existence blood of the cardboard marketplace they're especially plenty powerless to do something. yet as others have suggested see possibly in case you may get expenses decreased some banks are solid approximately that.
2016-12-18 17:07:42 · answer #7 · answered by zissler 3 · 0⤊ 0⤋
Yes, I knew that. Do you know how to keep that from happening? Don't keep your balance so dangerously close to zero. Sounds like you were cutting it short and got caught...
2007-03-07 01:06:35 · answer #8 · answered by Fearless Leader 4 · 0⤊ 1⤋