I know there is overdraft protection available by using a credit card. However, I'd like to formally and legally fill out a directive of some sort to advise my bank NOT TO PAY if funds are unavailable is this possible?
2007-06-06 08:38:21 · 8 answers · asked by nilervr2000 1 in Business & Finance ➔ Personal Finance
yes, you can get overdraft protection from a credit card. It's not a good idea because when an overdraft is created, the interest rate is much, much higher than the normal purchase interest rates. You can tell the bank to not pay unavailable funds. It is simply a status code that gets put on your account. I have clients ask me to do it a lot.
2007-06-06 09:02:39 · answer #1 · answered by ruca80 3 · 1⤊ 0⤋
Unfortunately there is no way to do this. When you make a purchase using your debit card it may take a few days for the business you bought from to send the information to your bank (they have up to one year to claim payment).
You have 2 choices:
1 - Keep track of your purchases to know how much you have in your account at all times. THis is time consuming, but will save you money in overdraft fees
2 - Close the debit card and only use a ATM card without the VISA/Mastercard logo. Or just use the PIN function on your debit card. These purchases post onto your account much faster than debit purchases.
Keep in mind a bank has no idea where you are shopping, and what you are spending. They are at the mercy of the businesses you shop at to inform them of when you have made a purchase. Federal law prohibits banks from not paying debit card/credit card purchases once the payment has been approved at time of purchase.
Sorry, you can ask them to stop paying.
2007-06-06 08:59:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It takes a day or two to post on your account whatever you purchased so at the time of purchase you had the money in the bank, it is later when the purchases are run through that you become overdrawn. By having them refuse the draft the purchase you are in effect stealing from the companies you made the purchase through and can be held criminally liable, with fines allot more than the overdraft charge. A better idea would be to keep track of the balance in your account and not purchase more than the money you have in there
2007-06-06 08:47:36 · answer #3 · answered by Pengy 7 · 1⤊ 0⤋
All you have to do is to stop in at your bank and make your request and ask about filling out a form. Some banks make money off their customers by making them pay an "insurance fee" for overdraft protection. Just have it revoked.
2007-06-06 08:46:09 · answer #4 · answered by Laredo 7 · 0⤊ 0⤋
Definitely. You can close out the overdraft, or request a certain limit. Generally, the bank will try to talk you out of it but it's possible. Some places will have a form, others simply require the request to be a written letter.
2007-06-06 08:43:01 · answer #5 · answered by ShouldBeWorking 6 · 1⤊ 0⤋
To the 2d answer...the debit card is extensively utilized as a credit card. you have the alternative of paying as debit or credit once you employ your debit card in any save. yet they do even have credit enjoying cards, that's some thing seperate than what the asker is conversing approximately. you ought to nevertheless be waiting to apply your debit card whether you have $0 for a stability, yet there will be a cost. optimistically it is a few thing you definitely desire, and in simple terms verify you do one purchase. in case you're making better than a million and it is below you will get distinctive costs.
2016-12-12 13:24:01 · answer #6 · answered by ? 4 · 0⤊ 0⤋
yeah just go to the bank. YOu need to fill out a over draft protection agreement. It takes about a week to process
2007-06-06 08:46:22 · answer #7 · answered by Leannamick 5 · 0⤊ 0⤋
Oh sure that's easy. You just go to the bank and ask them to take that privilege away from the account. You must be on the account to do this too.
2007-06-10 12:40:21 · answer #8 · answered by Pepper 6 · 0⤊ 0⤋