Can banks charge an overdraftfee on a transaction that has not actually posted to the account? The bank claims it is using real time and is taking money from the account as soon as the card is swiped. According to my statements and the order of transactions posted on those statements, I should not be charged.
Untitled
Assuming that the bank has disclosed properly the fact that overdraft fees can be imposed for card transactions, the bank is entitled to do so, whether the overdraft is based on the temporary hold it puts on your account when you make a card purchase or on the live transaction when it actually posts (but only one or the other, not both). The bank is also entitled to refuse to authorize your POS purchase attempt when the card is swiped, if you don't have sufficient available funds in your account at the time of the purchase. Apparently, your bank provides an overdraft service that allows you to tap overdraft funds with your card transactions.
New regulations effective on July 1, 2010 will require your bank to stop assessing overdraft fees on card transactions unless you opt into the service by 8/15/2010. If you decide not to opt in, you won't be charged overdraft fees after that date, but your bank will stop authorizing card transactions that would overdraw your available funds.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Assuming that the bank has disclosed properly the fact that overdraft fees can be imposed for card transactions, the bank is entitled to do so, whether the overdraft is based on the temporary hold it puts on your account when you make a card purchase or on the live transaction when it actually posts (but only one or the other, not both). The bank is also entitled to refuse to authorize your POS purchase attempt when the card is swiped, if you don't have sufficient available funds in your account at the time of the purchase. Apparently, your bank provides an overdraft service that allows you to tap overdraft funds with your card transactions.