Overdraft Protection For Debit Cards
Lot of people have been getting notifications from their bank or credit union about overdraft protection for debit cards. These notifications sound urgent and tell you that unless you respond that your financial institution will have to turn off overdraft protection on your debit card soon. While it sounds like your bank is trying to take care of you, the opposite is likely true. Debit Card Overdraft Protection You may be aware that recent banking reform legislation shut down some of the worst abuses that banks and credit unions used to generate big fee income at the expense of their customers. One of those banking abuses was so-called overdraft protection, which in reality is just a way to charge you big fee. When you write a check, that check gets sent to your bank. Your bank pays the amount on the check out of funds in your checking account. Overdraft protection turns on when you don’t have enough money in your checking account for the check to clear. Most people assume that if there is not enough money in their account to pay a check they wrote that the check bounces, but not if there is overdraft protection. The way …