Thursday, June 12, 2008

Debit cards generate repeated overdraft charges

Although this tip does not directly relate to consumer identity protection, it seems very important to pass it along.

Consumers using bank debit cards are being hit by repeated overdraft charges in short time periods. One way this happens is when they manually deposit checks (even through ATMs) and the checks are not added to their balance until the next business day, or possibly until cleared, even though the bank balance adds the “pending” amount into the total it displays. When consumers withdraw or spend from these cards in the mean time, particularly over weekends, they may incur successive overdrafts on every charge.

Consumers should also considering asking banks to place maximum daily and point-of-sale withdrawals on debit cards, as a personal security measure.

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