I am totally disgusted with debit cards and this is a lesson that ive learned the hard way, which are the risks of using debit cards. To make sure I didn't overdraw my bank account, I checked my online bank statement. Since it had showed $100 in my checking account, I kind of felt that I could make several small purchases a few days before I got my paycheck. So with me using my debit card, I bought some groceries and some gas which had totaled to about $85.
Even though the balance in my account was what thought to be more than enough to cover the price of the stuff I bought, I had decided to check my account about ten days later, I had found out that Hellsfarlow had raped my account for $120 in overdraft fees.
I really couldn't even figure out what exactly what was going on, cause I knew I had the money in the bank. I had checked my account online. But what I did not know is that these banks will put a pre-authorization hold on your checking account every time you make a purchase. In situations where the amount of the transaction isn't taken from your account at the time that you made the purchase, but it actually does make sense that a merchant would want to reserve a little more to cover their transaction. Think about if you give your debit card to a waiter for a tip or a gas station, where the merchant is likely to get an approval of a higher amount after you used the card. Even car rental companies that accept debit cards routinely place holds in the amount of $300 to $500.
And where I got caught up at is when the pre-authorization hold the gas station put on my account resulted in overdrafts on at least 5 other small transactions even a $2 cup of coffee and Im talking about a overdraft charge of 35 dollars on each transaction. I believe that Ive paid over $4,000 in overdraft charges because of this corrupt bank and debit card conspiracy.
By not knowing whats going on with your account you can end up going deep into debt from using a debit card, and if banks don't give you a warning when you're going over, how would you know? And think about how many banks offer free checking when they intend to rape you for hundreds of dollars a month, so as of now I won't touch a debit card anymore. Im using cash and money orders only.
These pre-authorization holds placed by the merchants are just one of the factors that make it very difficult, if not impossible for a depositor to know their available account balance. It's becoming more difficult to tell when a transaction hits an account and what is your current account balance. Please beware of the evil debit card as I know what damages can be caused to your finances from my own personal experiences.
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