Gasoline companies and some other businesses used to put "holds" on credit card amounts (sometimes up to $200 for up to 2 weeks) if you used them to pay for gas and other things. Now apparently, they are doing the same thing with ATM debit cards.
So if you think you have a certain amount of money in your checking account and you think you have enough in your account to cover the amount of gasoline you're actually buying, for instance, you may be in for a shock when your account gets overdrawn, and you end up paying those awful $25 per rejected transaction fees.
With the passage of the electronic banking rules last year where money is automatically withdrawn from accounts immediately (from checks and debit cards) rather than having a float of a few days, there is no excuse for any company to engage in this kind of practice anymore. If you get scammed this way, make sure you complain to your bank at the very least. This kind of business practice doesn't help any consumer in this age of rapidly escalating prices and only puts more profit into the hands of the banking industry.
""For people who keep very low balances, it can put them in an awkward situation," said Hall. He suggested that consumers have backup forms of payment, such as cash, a check or a credit card.
The practice of holds is legal, and Badgley and Baarda illustrate the only real options consumers have in dealing with holds: They can frown about the practice and continue to use their debit cards or they can change buying habits to avoid using a debit card in instances when holds typically occur...."
Miulang
So if you think you have a certain amount of money in your checking account and you think you have enough in your account to cover the amount of gasoline you're actually buying, for instance, you may be in for a shock when your account gets overdrawn, and you end up paying those awful $25 per rejected transaction fees.
With the passage of the electronic banking rules last year where money is automatically withdrawn from accounts immediately (from checks and debit cards) rather than having a float of a few days, there is no excuse for any company to engage in this kind of practice anymore. If you get scammed this way, make sure you complain to your bank at the very least. This kind of business practice doesn't help any consumer in this age of rapidly escalating prices and only puts more profit into the hands of the banking industry.
""For people who keep very low balances, it can put them in an awkward situation," said Hall. He suggested that consumers have backup forms of payment, such as cash, a check or a credit card.
The practice of holds is legal, and Badgley and Baarda illustrate the only real options consumers have in dealing with holds: They can frown about the practice and continue to use their debit cards or they can change buying habits to avoid using a debit card in instances when holds typically occur...."
Miulang
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