Don't ever use your debit card for any hotel/motel/car rental reservations. These merchants will run your card through for authorization purposes, but the banks' dumb computer system will automatically lower your bank account's balance by that authorization and any checks that subsequebtly clear will bounce until the the hold is off. The banks refuse to correct this glitch in their computer systems because it earns them overdraft fees.
It's not a glitch in their system. A hold is put on your account for the possible charges. Since you're not using credit, that balance is basically "frozen" until the transaction is complete and the hold is released. That is because the money needs to be available to pay those charges. And yes, any other transactions will cause an overdraft. It's like you took the money out and paid a deposit. At the end, if it's not all used, they give you a refund (return to available balance). One good reason that everyone should have at least one credit card.
So have I. It happened to my husband before we met. Hard lesson learned, but that's why most financial advisors will tell you not to use debit cards. I wouldn't use one for anything. You lose a lot of the protection you have with a credit card. I'd rather use the credit card, keep the money in the bank and pay the bill off when it comes.
I agree with this. Except for one thing: my credit union is bribing me. If I have 12 debit card transactions in a month, they pay me 5-1/2% interest on the balance in my checking account.
Then use it for something like gas or fast food where you aren't going to have a dispute or chargeback.
A problem that happen to me.When i received a credit card from one of the cc"s there was an offer for other products.I didn't want to put on new card so i paid with my bank debit card.Well i got signed up for a lot of stuff.A medical health plan mag's etc.I mean a lot!!!!.So i spent a better part of a day getting everything reversed.Ended up getting a new debit card.Then i had to go to all my accounts to change card number.Finding addresses of those firms and canceling.One told me thay had a set up fee.So I called the state attorney general and complained,also the cc company that issued the credit card,they said they were aware of the problem,And would fix anything that was't taken care of.So when you see my post's just think of me as the poster child of been an idiot.Learn from me i seem to be the ground breaker for not what to do.lol
