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Here is Your Debit Card, You Have Been Warned

  1. Heed the Fee Just because banks no longer charge annual fees for their debit cards doesn’t mean they’ve changed their tune. They’re just being competitive. However, this doesn’t mean it isn’t possible to incur fees while swiping. In fact, many of us (myself included) are victims of constant, ‘casual’, charges that overtime will eat away at our checkings account.

The fees we are talking about are Point-of-Sale aka POS. Any time you use your PIN you are using your check card as a debit. These types of transactions are more secure and cost less for the retailer, but be aware that there could be a charge. Better to ask before you swipe. Earlier this year before I abandoned fast food I was at Carl’s Jr. ordering when the associate remarked that I would be charged $1 for using debit. I was shocked. After all, Carl’s Jr. was a regular stop for me when I used to work in Koreatown. Unbeknownst to me I was being charged every time. Hassan’s Realization #20 Always check your receipt.
  1. When the Big Transactions are Clear, You’re in the Clear Most banks process large purchases first. If you’re not aware of this you could end up with costly overdraft fees. In the example below you’ll find that if the bank debited the transactions in the order that the purchases were made the account holder would get stuck with one overdraft fee. However, by switching up the order, even given the same amount the account holder in this situation would actually get dinged twice. All of this done with an account that only has $100. Sounds like funny math? Look below…

And you thought you had to be careful with credit cards…

For more secrets about debit cards check this article out.

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