she said that my account allows for up to $500 in transactions A DAY even if there's not any money in my account, if I purchase things with my bank card.
Why do banks allow people to do this, because if you don't have the money to cover the transactions you're screwed. I always thought if you didn't have enough funds in your account and you used a bank card the transaction would get rejected, like what happens with a credit card?
2007-09-01 05:28:29 · 11 answers · asked by kfount400 2 in Politics & Government ➔ Law & Ethics
Because they make a lot more money than people realize with the policies they have in place to cover check cards. If you are smart write a check and laws will protect you much better.
2007-09-01 05:33:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
simple, it's how they make money. if you spend $2 on a some gum and a coke at the gas station and you don't have the funds but use your card anyways, the bank has to cover it and then charges you a fee for it so you end up spending 30 bucks on a 2 dollar purchase. some banks don't have overdraft fees, but i'm not sure which ones. but honestly, that's how they make money. if everybody stayed within their account limits or never had to borrow any money from the bank, then banks wouldn't do much business.
2007-09-01 12:33:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I think you misunderstood her. Most bank cards now have overdraft protection (not always a good thing) of $500. You get charged for each transaction at an average of $30 per by the bank. This protects you from getting two charges (one from the bank and one from the store you used the card at).
2007-09-01 12:35:14 · answer #3 · answered by sensible_man 7 · 0⤊ 0⤋
Because they charge approximately $39 per transaction for overdrafts That's even on a dollar purchase. That's how they make money now days. You make a dollar purchase and end up paying $40. Heck of a profit on a dollar.
2007-09-01 12:36:26 · answer #4 · answered by Tom Thumb 3 · 0⤊ 0⤋
Nope. They want the fees from overdraft and you are supposed to run home, look online and move money into the account some time before they process the balance - like floating a check where you write the check and then move money before it arrives. It is supposed to be a "convenience" for you. Expecially when they take 3 over draft charges in one day and get $90 for themselves because they upped the fee after a couple!!!!!!!!!!!!!!
2007-09-01 12:35:38 · answer #5 · answered by Mike1942f 7 · 0⤊ 0⤋
Banks give their customers the benefit of being able to overdraft their accounts on occasion so that their transactions don't 'bounce', it is up to you to KNOW what your balance is and not go over it. The bank did you a favor you should run and cover the overcharge before they pile up fees on your account.
2007-09-01 12:33:57 · answer #6 · answered by r1b1c* 7 · 0⤊ 0⤋
Banks assume that if you're old enough to open a checking account, you're mature enough to monitor your funds. They're in the business of making money, not babysitting you.
2007-09-01 12:33:27 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It's your responsibility not to overdraft you account.
They can then charge a overdraft fee for each transaction
this allows the bank to make money from your mistakes
good luck
2007-09-01 12:38:24 · answer #8 · answered by Jan Luv 7 · 0⤊ 0⤋
No, not rejected, you will just be charged overdraft fees. Thats how they make their money! They once charged me 30 dollars for being overdrawn by 4 cents!
2007-09-01 12:33:32 · answer #9 · answered by bender_xr217 7 · 0⤊ 0⤋
This way they can collect NSF fees from you. Banks are evil!
2007-09-01 12:33:46 · answer #10 · answered by LEO53 6 · 0⤊ 0⤋