Not true at all. I've overdrafted 3 times in one day for a total of almost $100. I had a seperate account I set up for saving up for insurance premiums, etc and decided to quit doing that (quit moving the money not quit saving). Well, I accidentally grabbed the wrong card to pay for a couple purchases that day and got hit with a $100 in fees. Was it my fault? Yes. Was it stupid? I dont think so...just grabbed the wrong card. Was it a redicluous fee considering I have two other accounts with more than enough money in them? ABSOLUTELY.
So you say its not true at all, then post up an example of how you mismanaged your very own money even if only 1 time? Id bet dollars to donuts that if you went to the bank, they would have credited them back. And if they didnt, Id expect you to move your money to a new bank and to NEVER grab the wrong card ever again.
Similar thing happened to my brother except he got hit with almost $500 in overdraft charges.
Again, mismanagement of his money. But now imagine that the little Visa Logo or Mastercard logo wasnt on the card? Would either of you have made the same mistake?
They make it even more painful by executing the largest transaction first so that you overdraft quicker. For example, say you buy 5 items, 1-$100, 4-$5 items in the same day and the $100 purchase was the last one of the day and you had $50 in your account. Instead of using the $50 to pay for the 4 items, they use the $50 towards the $100 item automatically causing an overdraft on all 5 items instead of what was really one. Assuming an overdraft charge of $30 per occurrence, it cost you $150 when really it only needed to be $30.
That is what is BS about overdraft charges...............
If these things work anything like a credit card, then your account isnt charged until the vendor decides to settle up. Ive bought something on a Saturday and it was charged on my statement on the next Monday. So no "they" dont pay for the big ticket items first. The vendors selling you those items want to get paid so they settle or reconcile up faster than other places.
So basically its BS that you dont have the money in your account and instead of bouncing a check, they pay for it and charge you a fee, which is the fee for a bounced check instead?
I dont disagree that over draft charges are excessive for small items. I do think that anything under 25 bucks should be charged the price of the item instead of the full amount.
Or even better, CUT YOUR CHECK CARD IN HALF.
Ive already said that the problem is that people treat them like credit cards and they arent credit cards. They are "checks."