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Showing posts from December, 2010

New Rules for ATM and Debit Card

New Rules for ATM and Debit Card Overdrafts New Federal Reserve rules give debit and ATM card users additional options regarding overdrafts. Banks, credit unions, and other financial institutions must offer you
the ability to make decisions about overdrafts for transactions made with your debit or ATM cards.

Expect your bank to send you an explanation about how it treats overdrafts; Here  are some key things you need to consider when reading the notice:

The basic facts
An overdraft occurs when you make a purchase or ATM transaction but don't have enough money in your account to pay for it. For a fee, your bank will cover you when you become overdrawn. This fee can apply each time you overdraw your account. Generally, banks can cover your overdrafts in one of two different ways:

* Standard overdraft practices. Your bank will cover your transaction for a flat  fee of about $20-30 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 b…