2008 Woodie Awards
It's All Fun & Games Until The Bill Arrives
Danielle Holton Staff Reporter
Issue date: 9/22/05 Section: News
- Page 1 of 1
Having a mall one exit away from campus isn't necessarily the greatest thing for the check card users here. Unless they keep track of their checkbook it could be costing them more money than the shopping trips themselves.
"I used to keep track of my checking account by my ATM receipts, turns out that's not a reliable way," said Mark Maleri, sophomore, Seymour. Maleri is not alone in thinking that what the ATM says is available, is correct.
ATM receipts are not necessarily correct because of checks and check cards. Because these items are used and take a couple of days to clear, merchants have set up a system to take more out of the checking account than what was authorized. This is done as a safety precaution for them, as a way to ensure their payment.
Eleanor Cook from Wachovia Bank customer service said, "Say you go to a Restaurant and spend $30, if you put it on your check card the Merchant automatically charges you $35, because they want to charge you if you leave a tip as well. When the charge clears they will only take the $30 you signed for and the $5 will be put back into your account. The merchant automatically does this; the bank really has no control over it."
Check cards compare to credit cards in a few ways. Check cards provide the flexibility to pay for things without having cash on hand or a check.
A difference is the money comes directly out of a checking account instead of getting a bill in the mail. However, because there is a credit card logo on the check card, people forget that the money does come from a checking account so it is essential to make sure the money is in the account.
It's all fun and games until the overdraft charge. An overdraft charge is a fee for spending more money than is in the checking account.
Unlike a credit card, if more money is spent than actually available, it does not affect your credit score.
The predicament occurs when you get an overdraft charge because they can add up. If the account is with Wachovia the overdraft fee is $30 if you live in Connecticut. Each time overdrafting occurs with Peoples Bank the fee is $28 no matter where you live. If the account is with Bank of America, previously Fleet, the over draft fee is based on the number of times overdrafting occurs each year.
For instance, "The first time an overdraft occurs in one year there is a fee of $19, the second to fourth time in the same year there is a charge of $31, the fifth time and over there is a maximum charge of $34," said Steve Due, Bank of America representative for Customer Service.
The question is: what can be done to prevent an overdraft fee?
Most banks provide an "Overdraft Protection" program. This is where having a protection account, either a savings account or a credit card, is put to use. If overdrafting occurs, instead of applying an overdrafting fee they will go to the protection account for reimbursement.
The catch is that the protection usually costs a minimal fee. In Wachovia it's $5 fee for every transfer over, People's bank is a $1.50 monthly fee for it's services, and Bank of America charges a $10 transfer fee.
"I used to keep track of my checking account by my ATM receipts, turns out that's not a reliable way," said Mark Maleri, sophomore, Seymour. Maleri is not alone in thinking that what the ATM says is available, is correct.
ATM receipts are not necessarily correct because of checks and check cards. Because these items are used and take a couple of days to clear, merchants have set up a system to take more out of the checking account than what was authorized. This is done as a safety precaution for them, as a way to ensure their payment.
Eleanor Cook from Wachovia Bank customer service said, "Say you go to a Restaurant and spend $30, if you put it on your check card the Merchant automatically charges you $35, because they want to charge you if you leave a tip as well. When the charge clears they will only take the $30 you signed for and the $5 will be put back into your account. The merchant automatically does this; the bank really has no control over it."
Check cards compare to credit cards in a few ways. Check cards provide the flexibility to pay for things without having cash on hand or a check.
A difference is the money comes directly out of a checking account instead of getting a bill in the mail. However, because there is a credit card logo on the check card, people forget that the money does come from a checking account so it is essential to make sure the money is in the account.
It's all fun and games until the overdraft charge. An overdraft charge is a fee for spending more money than is in the checking account.
Unlike a credit card, if more money is spent than actually available, it does not affect your credit score.
The predicament occurs when you get an overdraft charge because they can add up. If the account is with Wachovia the overdraft fee is $30 if you live in Connecticut. Each time overdrafting occurs with Peoples Bank the fee is $28 no matter where you live. If the account is with Bank of America, previously Fleet, the over draft fee is based on the number of times overdrafting occurs each year.
For instance, "The first time an overdraft occurs in one year there is a fee of $19, the second to fourth time in the same year there is a charge of $31, the fifth time and over there is a maximum charge of $34," said Steve Due, Bank of America representative for Customer Service.
The question is: what can be done to prevent an overdraft fee?
Most banks provide an "Overdraft Protection" program. This is where having a protection account, either a savings account or a credit card, is put to use. If overdrafting occurs, instead of applying an overdrafting fee they will go to the protection account for reimbursement.
The catch is that the protection usually costs a minimal fee. In Wachovia it's $5 fee for every transfer over, People's bank is a $1.50 monthly fee for it's services, and Bank of America charges a $10 transfer fee.