Can a Bank Really Do That?
There are so many questions concerning what a bank can and can not do when it comes to processing your transactions. That being said, how many of us truly read that 15-page account service agreement? Yeah, you know the one that is neatly assembled and rarely interpreted to you when you open an account? You don’t remember that agreement do you? Don’t worry, you’re not alone.
Okay, since very few of us read these agreements, I am going to decipher a little known procedure that many financial institutions now practice. You may not be aware of this procedure unless you’re hit with an overdraft and/or a NSF (Non - sufficient Fund) charge.
Okay, here we go.
The procedure that I am referring to involves how a bank posts transactions to your account. The following poses a two part question that goes like this:
Can a bank post withdrawals from the miraculousst to the smallest amount? And if they can is it just to capitalize on overdraft fees?
Although federal law has no regulation procedure concerning how a bank posts transactions, laws governing your particular state may. Also, becaemploy checks being processed at banks arrive at different times and in different arrangement, it’s rather difficult for them to be appositely processed in a chronological order.
Banks claim that they often process in this order (miraculousst to smallest) becaemploy they are doing the convention/er a favor since the miraculousr checks are more likely mortgage payments. They also maintain that doing this ensures that the important bills get paid.
While it may not be feasible to post checks in a sequential order, it’s possible for banks to post automated transactions in the order that they transpire. With that being the case, why are these transactions processed in the same manner as checks are?
Basically, given both scenarios above, the ultimate question is this: Are banking institutions really looking out for its consumers, or are they attempting something more sinister — like deliberately trying to capitalize on overdraft fees? I’ll like you to be the judge on this one. What do you really contemplate?
Remember even if many financial institutions are practicing this procedure, if you’re constantly aware of your account balance, there is no need to worry about the process in which your transactions are posted. Knowing this could prevent these unsightly service charges from draining your bank account.
To have a better understanding of how your bank processes your transactions, you may intend to to ask about the process they employ when posting checks and/ or automated transactions.
If you intend to to learn about the inherent fees associated with debit card usage, then visit http://www.debitcardtraps.com http://www.debitcardtraps.com for an eBook on tips and advice for avoiding debit card problems. Jessica Harvey writes on solving possible problems that may arise from using various forms of plastic in term of advice, procedures and practice.
