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Thread: No more atm overdrafts

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    God/dess Paris's Avatar
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    Default No more atm overdrafts

    Starting July 1 2010 banks will no longer be able provide atm and debit card transactions to those w/o any money in their account (unless the account holder has pre-approved this overdraft service).

    http://news.yahoo.com/s/ap/20091112/ap_on_bi_ge/us_fed_overdraft_fees

    This may be a good thing over all, as most people think that if you have no money in your account, you shouldn't be able to withdrawal funds or make purchases with your debit card or at the ATM. But banks have consitently allowed the customer to do so, slapping him/her with $20-40 in over draft fees per transaction.

    This could be a problem for strippers on the rare occasion that a customer buys dances, goes to the atm and can't withdrawal cash due to none being there in the first place. The bouncer can hang him upside down by his ankles and shake, but nothing is going to come out, because there will be nothing to get.

    This will likely affect the way dancers currently do business. All it'll take is one customer caught out w/o any way to pay, and the girl will start requiring he pay in advance.

    Overall, I see this as a necessary regulation for the vast majority of people. Especially those of us with joint accounts. I do my best to stay on top of my expenses, but have occasionally been caught with an overdraft fee because my husband forgot to tell me about a purchase or vise-versa.

    Yes, it'll be embarrassing to be standing at the checkout line with the card-swipe machine blinking DECLINED. I can handle a moment of humiliation much better than a $25 overdraft fee.


    Promote yourself and earn more money! This is a business that is owned by strippers for strippers. Let's make that money!


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    Banned Melonie's Avatar
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    Default Re: No more atm overdrafts

    ^^^ very true that this development re ATM's will put a further 'crimp' on the strip club business model. However, in hard hit cities, most clubs are already moving to a 'pay up front' scenario ... usually by moving private dance transactions to occur between customer and club rather than customer and dancer directly.

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    Featured Member Laurisa's Avatar
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    Default Re: No more atm overdrafts

    I knowingly overdrafted $10 at Bank of America (needed gas really bad) and it turned into -$175 after all of their fees. What they don't tell you is that they post purchases from largest to smallest, so even if your ledger says you were at $0.00 and you made one $10 overdraft they can post other purchases you made earlier out of order to hit you with three or four overdraft fees. I sat down with a bank representative and showed her my ledger and all of my receipts with time stamps (I was real diligent about this) but the manager told me "they wouldn't do anything".

    Fucking ignorant assholes. I hate BOA.
    If you are willing to do for one year what other's won't, you can spend a lifetime doing what other's cant.


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    Senior Member Blackstone's Avatar
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    Default Re: No more atm overdrafts

    You can almost always get a cash advance on a credit card if you're that hard up. Of course, it's like 30% interest.

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    God/dess Deogol's Avatar
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    Default Re: No more atm overdrafts

    The days of easy money are GONE - prepare for it.

  6. #6
    AudreyLeigh
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    Default Re: No more atm overdrafts

    Credit cards too. I got a call from one of my many cut up and not used cards that said they were calling me to let me opt-in to a program that will let me go over my limit. WTF?! Really! Why the heck would I want that? So you can hit me with tons of fees and turn my APR into 200%? I was like seriously dude, do you think this is a good idea? He laughed and said no, its just his job.

    What they don't tell you is that they post purchases from largest to smallest, so even if your ledger says you were at $0.00 and you made one $10 overdraft they can post other purchases you made earlier out of order to hit you with three or four overdraft fees.
    Pretty much all banks do this. THEIR reasoning is that typically the larger charges are more important (rent, car payment, etc) and the smaller transactions are less important (mocha and dinner).... therefor they post the large ones first.

    Now, how this doesn't make sense is that theyre paying them ALL and hitting you with fees. If they paid the large ones and didnt pay the smaller ones then I could understand it - youd rather your rent be paid than that mocha!

    This is why I use Quicken and keep track of every penny I have in my account, have pending, etc... this is especially important when it comes to payments to CCs that take 3-5 days to debit from the account.

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    God/dess Deogol's Avatar
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    Default Re: No more atm overdrafts

    Quote Originally Posted by AudreyLeigh View Post
    Credit cards too. I got a call from one of my many cut up and not used cards that said they were calling me to let me opt-in to a program that will let me go over my limit. WTF?! Really! Why the heck would I want that? So you can hit me with tons of fees and turn my APR into 200%? I was like seriously dude, do you think this is a good idea? He laughed and said no, its just his job.



    Pretty much all banks do this. THEIR reasoning is that typically the larger charges are more important (rent, car payment, etc) and the smaller transactions are less important (mocha and dinner).... therefor they post the large ones first.

    Now, how this doesn't make sense is that theyre paying them ALL and hitting you with fees. If they paid the large ones and didnt pay the smaller ones then I could understand it - youd rather your rent be paid than that mocha!

    This is why I use Quicken and keep track of every penny I have in my account, have pending, etc... this is especially important when it comes to payments to CCs that take 3-5 days to debit from the account.
    You have graduated from a grasshopper to financial jedi master!

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    Featured Member Vamp's Avatar
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    Default Re: No more atm overdrafts

    This is a huge revenue source for banks in general. This may stop overdraft fees but it will mean alot more fees everywhere else. So keep an eye on the statements.

    This ONLY effects debit card transactions. Checks and electronic withdrawals will still be processed the same as before. Reaccuring debit card transactions ie pulled the same time every month ie utlities, gym memberships, etc are not included. The system can tell the difference by how the transaction is coded.

    I still have alot of questions and as I get more information at work I will pass it along.

    For anyone who is curious to look at the bill directly instead of a commentary page here is the link from the Feds website http://www.federalreserve.gov/newsev...20091112a1.pdf

    These rules do not effect credit unions btw because they are regulated by the NCUA and not the Federal Reserve
    Nature knows no indecencies; man invents them. ~ Mark Twain


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    God/dess threlayer's Avatar
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    Default Re: No more atm overdrafts

    What we need instead is a line of credit linked to our checking account; that LOC will be activated when we overdraw our accounts. What banks do now with allowing overdrafts is just to help their bottom line with a fee profit center.

    BoA used to have this locally, but my current bank does not have a linked LOC system. Maybe this will force them into it, but it is a pretty conservative bank.

    Quote Originally Posted by AudreyLeigh View Post
    ...Pretty much all banks do this. THEIR reasoning is that typically the larger charges are more important (rent, car payment, etc) and the smaller transactions are less important (mocha and dinner).... therefor they post the large ones first.

    Now, how this doesn't make sense is that theyre paying them ALL and hitting you with fees. If they paid the large ones and didnt pay the smaller ones then I could understand it - youd rather your rent be paid than that mocha!

    This is why I use Quicken and keep track of every penny I have in my account, have pending, etc... this is especially important when it comes to payments to CCs that take 3-5 days to debit from the account.
    I believe the biggest problem with the OP's problem is that debits are not posted timely, which also means in order that they are incurred, but are handled in bulk along with credit posts. Seems to me that the availability of connected ATMs should assure that debit transactions are posted instantaneously. But it seems that it is not your bank that in in charge of (foreign) ATMs; some other company handles the transactions, or perhaps your retailer stockpiles transactions until it is convenient for them to post them. That other ATM company just verifies that the card is valid and there is enough moneyt in the account to cover the charge;' the charge is not them posted. If it were, you could make an inquiry to see how much moey is really in tthe account. But you can't. Sometimes it takes 2 days for a transaction to post and in the meantime any number of additional transactions could have come in (late) with the effect of requiring all of us to balance our checkbooks accurately everytime we use that damned card! I'd have to carry a laptop around with me all the time to handle all the tiny charges that mount up in a day. So that is why a linked LOC would be so useful.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Featured Member pixierocksonthepole's Avatar
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    Default Re: No more atm overdrafts

    Thank goodness this is happeneing. I mean it makes another loop for dancers to jump through, but generally is something the people of today really need. Obviously we can't even tell ourelves (meant as a whole country not just person to person) to stop spending what we don't have. Normally I can't stand the idea of government controlling anything too much but this just seems like a great idea to me. I never have this problem, but with my husbands account we do. It sucks.





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    Featured Member Vamp's Avatar
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    Default Re: No more atm overdrafts

    Quote Originally Posted by threlayer View Post
    What we need instead is a line of credit linked to our checking account; that LOC will be activated when we overdraw our accounts. What banks do now with allowing overdrafts is just to help their bottom line with a fee profit center.

    BoA used to have this locally, but my current bank does not have a linked LOC system. Maybe this will force them into it, but it is a pretty conservative bank.



    I believe the biggest problem with the OP's problem is that debits are not posted timely, which also means in order that they are incurred, but are handled in bulk along with credit posts. Seems to me that the availability of connected ATMs should assure that debit transactions are posted instantaneously. But it seems that it is not your bank that in in charge of (foreign) ATMs; some other company handles the transactions, or perhaps your retailer stockpiles transactions until it is convenient for them to post them. That other ATM company just verifies that the card is valid and there is enough moneyt in the account to cover the charge;' the charge is not them posted. If it were, you could make an inquiry to see how much moey is really in tthe account. But you can't. Sometimes it takes 2 days for a transaction to post and in the meantime any number of additional transactions could have come in (late) with the effect of requiring all of us to balance our checkbooks accurately everytime we use that damned card! I'd have to carry a laptop around with me all the time to handle all the tiny charges that mount up in a day. So that is why a linked LOC would be so useful.
    In addition to LOCs some banks will allow you to link your checking to your savings. When the account goes negative it will pull from your savings.

    Debit card transactions are like lil electronic checks. Just like with a check the reciever has to process them with their financial institution before it gets to your financial insititution. That is why it takes three to five days. Sometimes it takes even longer depending on processing. Debit cards have the visa or mastercard logo because that is the intermediary between the retailer/merchant and the bank. There are alot of regulations concerning these transactions already.

    The best, cheapest, and easiest way to keep track is the good ole check register.
    Nature knows no indecencies; man invents them. ~ Mark Twain


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    God/dess threlayer's Avatar
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    Default Re: No more atm overdrafts

    I recall the savings link now, which is a better deal, but have never had a bank account system like that.

    Yet another reason for me to invest in a used (hardened) laptop.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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