| Many of us have noticed the trend of bank | | | | you don't keep record, then you have to expect at |
| overdraft fees steadily increasing over the past few | | | | some point, you'll be paying a fee. |
| years. A bounced check used to cost around $10 but | | | | Besides the increase in the amount, if you feel that |
| now is more commonly around $35 per transaction. | | | | you are paying more fees now than you were in |
| There are overdraft protection plans which only help | | | | years past, you may be right. Most banks now |
| us build up more and more debt. So what can be | | | | engage in the practice of "courtesy overdraft". Even |
| done? Many think that the banks should notify | | | | if you didn't sign up for any overdraft protection, |
| consumers of a transaction that is about to cause an | | | | banks may still approve transactions over the amount |
| overdraft before the transaction can be completed. | | | | that you have in your account and then charge you |
| Banks say that it is just too technically difficult. | | | | an exorbitant fee for the convenience. Banks say |
| Banks are viewed as institutions provided to us solely | | | | that it actually costs you the same as an old bounced |
| to protect our money. In fact, they are a business | | | | check plus the merchant's fee, minus the hassle for |
| and aim to turn a profit at some point. Banks are | | | | you and the business. What may not sit right is that |
| now being accused of processing large transactions | | | | courtesy overdraft is also available on debit or credit |
| first so that all those little ones trickling in can each | | | | purchases as well as ATM transactions, where the |
| incur its own overdraft fee. It has become easier | | | | bank knows that you don't have enough money to |
| than ever for consumers to rack up hefty fees now | | | | cover it. Again, the bank needs to make money to |
| that we are using not only checks, but we're also | | | | continue to provide all of its services and be |
| taking ATM withdrawals, using debit cards, making | | | | profitable. |
| credit purchases and other electronic payments such | | | | To eliminate future charges, we're just going to have |
| as bills and automatic withdrawals. | | | | to learn to keep track of our many transactions. Ask |
| Banks still hold firm that only the consumer can | | | | your bank about other options that may be cheaper |
| actually know what checks they have outstanding | | | | than paying overdraft charges. Most will waive fees |
| and what transactions they've made that haven't | | | | for first-time offenders and offer decent overdraft |
| cleared yet. Maybe they're right. We have to take | | | | protection plans or a transfer from savings in the |
| some responsibility for knowing what funds we have | | | | event of a miscalculation on your part. If you know |
| available in our own accounts. Modern conveniences | | | | you're going to need to overdraw your account and |
| such as check cards and ATM machines need to be | | | | don't want the fee, sometimes a payday loan is a |
| taken as seriously as writing a check used to be. If | | | | faster cheaper way to go. |