Five years ago I was issued a US Bank card which is essentially a debit card, as any purchase is immediately reflected in your balance. I was told my credit did not warrant an actual credit card but there is automatically an unrequested VISA logo in the corner.US Bank &/or VISA encourage you to use the card as "credit" by pushing that choice when you swipe the card for a purchase even though it is treated as a debit with the immediate reflection in your balance.
The funds are not actually immediatly deposited into the creditors account, but referred to as "pending". When you call the bank for your balance it states "Your current balance is $*.*, your available balance is $*.*, (2) pending transactions are reflected in your available balance". Your "balance" remains the first amount stated, as there are many variables until the pending transaction actually goes through and the funds are physically removed from your account and actually transferred into the creditors account.
The very word "pending" means "not yet decided - being in continuance" according to Webster's Dictionary.
US Bank &/or VISA bribe & encourage their customers to use the VISA option by rewarding us at the end of the year with a "bonus" deposited automatically into your account for 1/2 percent of the total spent during the year by using the VISA logo choice & pushing the credit button on all purchases.
The US Bank & VISA both make money by encouraging the consumer to use their debit cards the "credit" way. The banks &/or VISA are paid a larger percentage than they pay us, their customers, from the merchants for processing the merchants credit vouchers. We, the bank customers, are aiding & abetting the banks &/or VISA in making millions of dollars each year in this manner.
The real problem and the real "ripoff" to me, the consumer & bank customer, is when I use the credit, and for whatever reason I have a little less (or even a little more than a little less), funds in my account to cover the purchase they will go ahead and authorize the sale! Now they flat out denied me a credit card saying I wasn't credit worthy! Why are they suddenly extending me credit? If I have even 1 cent to little in my account why are they not refusing to authorize it to the merchant?
Even if I IMMEDIATELY leave the store and go straight to the bank to deposit the money that I just discovered was a little over my limit they have already charged me $33.00 penalty! Even though my transaction is still "pending", even though the funds have not left my account, even though I am not worthy of a credit card and even though they should have declined my purchase due to insufficient funds and they are making money off of my choice to hit the credit button, they still have the gall to charge me $33.00!
Then if you make another purchase thinking the funds you've just deposited have you covered & you have enough money in the bank to cover your purchases, the $33.00 you don't find out you are charged till the next day knocks your balance down again and you are charged yet another whopping $33.00!
Another greedy tactic used by US Bank on their customers is if you use the "credit" button for a purchase and you realize after leaving the store that maybe you slightly overspent, you return post haste to the store to return the item the same day (or even the same hour). The store immediatly "credits" the purchase back into your account. But guess what?! The purchase is reflected IMMEDIATLY, but the hasty return is not credited, or deducted for another 2 days! Hence another $33.00 penalty, Explain that one to me! Theft of my funds is what it amounts to.
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