Here are 5 things I wish everybody knew about their checking account...
1. There is no such thing as float time when you use your debit card! It's gone! No more float for you!The second you authorize a purchase, a hold is placed on your account for the amount you agreed to pay. (If their fingers hit the right keys that is.) The cashier told you this would post tomorrow? It will, but if you spend that money again tonight, you will you'll have the piper to pay tomorrow. It's more important than ever to track all of your debits. Checks can still be floated, but not more than a day now. Most companies run your check through electronically (ACH for short) so it comes out the next day. I haven't figured out if it places a hold on your account right away too, if anyone knows, leave me a comment and I'll update this post.
2. Less than a day to come out; three days to go in.Yes, I'm referring to refunds. It takes twenty seconds to pull money from your account, but three days to put it back in. This isn't your banks fault. If you have to blame someone, then you can blame the credit card companies...or the people who tried to work the system and made the credit card companies have to delay the process so that people don't cheat them. Greed is a disease you'll find it in every social class.
3. Don't use your debit card online unless absolutely necessary! If you make a purchase on the world wide web with your credit card and some creep gets hold of your card number, then they can create a mess, but at least your checking account isn't locked up. If worse comes to worse, you can still by bread and potatoes and shot gun shells personalized with the name of the perpetrator.
4. Beware of fraud.
When you work at a bank, you have to go through some routine courses on the basic types of check and electronic fraud...and my head about exploded. I had no idea there were so many gimmicks out there. There are some that would even get me, but generally, the way to avoid getting taken is to refuse if you aren't dead sure. This is harder for some people than others, but learning how to leave a good deal on the table is an essential survival skill. If there's not enough time to think it through and get a second opinion, then you had better leave it be. Ten bucks says it's a scam.
5. The most common type of internet fraud is free trials. They say that money talks, but no money talks louder. IT SCREAMS WATCH OUT!!! Before you sign up, look up the company. If you see few results; beware. If you see a bunch of negative comments...and you still sign up, then you probably got nothing at all from this post. Larry the cable guy's probably over your head too.
Is there anything else you wish people knew about their checking accounts?
Comments (10)
ACH is basically the same as using a debit card, it places a hold.
Refunds on debit cards can take up to a month. Be warned!
I hate people that claim online purchasing isn't safe. It doesn't take much skill to know a scam. Most websites that aren't major ones take paypal.
Use cash whenever possible. you will spend less money shopping, if you only spend what you have cash for.
@ProudToBeAChristianFruitcake@xanga - I know the sentiment behind that, and I also know that it works for some people. However, I have a word of caution. If you do use cash, you have to be absolutely sure to keep receipts. Recently, I bought a large item at Best Buy, and moved shortly thereafter, losing the receipt during the move. When my purchase didn't work a few months afterwards, I had to go through innumerable phone calls and recall the exact date, time, and amount of purchase to get a receipt printed. Even then, I know it was only through the good graces of Best Buy (great place to do business with!)- Walmart, Target and such places would have said, sorry, but no can do! I don't do cash for that reason- there's no paper trail. It's a lot easier for me to go to my computer and print out the bank transaction from my debit card than retrieve a soggy receipt from the bottom of the waste can that my two-year old decided to pitch- or, try to remember where I put the receipt in the first place. Like I say, the practice is good, it just doesn't work for everybody.
The store clerk at Aldo's told me that I can use my debit card as a credit and the charge would take 3 days to be processed. Is that true?
Though I've been warned about using my debit card to much-- since debit cards don't have as much protection as credit cards, if something happens-- I still use it all the time. I tend to run out of cash too fast and I never keep track of it. While my debit card, I always know the balance in my head.
@Kaichiturtle@xanga - your debit card, should have the logo of a credit card company on it. otherwise it is a bank ATM card and not a debit cards. when you use the card at the store, and the machine or the store clerk asks you debit or credit, always, and I mean always say credit. the reason I say always, is 3 fold.
1. Debit cards, can be charged up to .50 per transaction, depending on the store. On a credit card, the store eats the transaction costs. The reason for this, is the credit cards, in wanting people to use them, tells the store they have to eat the .50 your debit card, being linked to a bank account, does not have that kind of defense, they are free to charge you a fee of up to .50
2. When you use it as a debit card, and you input your secret code/pin number. It goes through your bank processing. When you use your debit card as a credit card, it goes through the credit card processing system. According to VISA, if you use your VISA debit card, as a credit card, meaning you have to sign the reciept and you did not have to input your pin number, then it has the same ID theft protection as if you used an actual credit card. (please note I said VISA, I do not know if it is true on debit cards with the mastercard logo.
3. If you use a debit card as a credit card, many shops will ask to see ID. If the clerk is paying attention when the clerk looks at it, it adds another layer to prevent ID theft
Checking your balance at an ATM or even at the bank itself doesnt necessarily tell you how much money you have to spend, you need to keep your own records via a check book register!
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@Kaichiturtle@xanga - Credit processing used to take three days. Now, I'm not sure if this is true across the board, or if it is only some of the card companies, but I routinely speak to people who are counting on that three days of float time, and they don't get it. What happens is, when the purchase is made, your card information is processed and a hold is placed on the funds in your account so that only the person who you authorized to pick up the money first, can. It posts to your account two or three days later, but can still overdraft your account. I believe this change happened some time last year and the card companies didn't bother to tell anyone about it, since in fact, you are never supposed to spend more than you have at any given time. I'd recommend not floating a check either. There is no real difference between a same bank check now and a check from a bank on the other side of the country. They can come out at the next day now. I just saw this happen yesterday.