When using your check card to make a purchase the money for that purchase is placed on hold immediately. According to the banks own statement regarding holds on money the hold can be for more than the actual amount of the purchace depending on the type of purchase. This effects your balance and can cause an overdraft. The purchase hasn't been posted by the merchant for payment yet the bank is taking this money from your account and keeping it aside for 2 or 3 days while waiting for the posting to come through.
I check my balance online and there is no negative balance in my account and yet I see a charge for "Overdraft protection" fees. I keep a running record of my balances, and yes sometimes I may make a purchase that drops my balance to negative territory by a few cents, but when I see that I am low I transfer funds that evening to cover any purchases I make. The practice of putting your money on hold at the time of purchase and not at the time the merchant posts the transaction is just a way for the bank to charge fees. If that merchant, for whatever reason, never requests payment from the bank the money that was placed on hold would be placed back in my account and the Overdraft Protection fee would have been charged for nothing.
If I write a check for a purchase it is not posted immediately. The bank wouldn't be putting money on hold to cover that check. What's next? Will the bank start looking at your spending habits and place holds on your average daily, weekly or monthly spending because you might make a purchase and they might need the money to cover it?
When I went to the bank to dispute the charge the manager there told me "I didn't overdraft your account did I? Why should I refund the charge?" I am not an irresponsible two year old that doesn't know how to handle myself. I don't need some money hungry bank manager treating me that way. I have direct deposit with this bank, several checking and savings accounts and a home equity line of credit. I always put money in my accounts to cover any purchases I make. I could go on about the many problems with this bank by I don't want to give myself a heart attack.
Suffice it to say that I am not pleased with the way this institution conducts itself nor am I pleased with the service I receive and judging from the numerous other reports filed I am not alone.
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