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>And if you’re overdrawing on a debit card, then you’re probably poor and those fees are a substantial burden. It's even worse than that. Banks have been caug
by gerbilly 10y ago
>And if you’re overdrawing on a debit card, then you’re probably poor and those fees are a substantial burden.
It's even worse than that. Banks have been caught reordering transactions to maximize overdraft fees.[1]
For example, say you have a $100 in you account and you use your debit card to pay the following amounts (in time order): $4, $15, $60, $41.
the first 3 will go through, then the last one $41 will put you over the limit and you'll pay one overdraft fee.
But if you reorder the transactions and submit them like this: $60, $41, $15, $4, then you go over the limit by the second transaction and pay 3 overdraft fees instead.
Nice huh?
[1] http://www.nytimes.com/2016/02/29/business/dealbook/overdraft-practices-continue-to-gut-bank-accounts-and-haunt-customers.html http://www.nytimes.com/2016/02/29/business/dealbook/overdraf...
- jjeaff 10y agoI believe this practice is no longer allowed. But of course is still happening.
- captn3m0 10y agoThe article mentions a bank that now notifies customers in fine print about this practice on the basis that "it is good as long as the customers are notified". So definitely still happening. (article from 2016)
- captn3m0 10y agoThe article mentions a bank that now notifies customers in fine print about this practice on the basis that "it is good as long as the customers are notified". So definitely still happening. (article from 2016)
- captn3m0 10y agoWow, this is another reason we need developers to study ethics. No one should have agreed to write software that _reordered_ transactions to maximize fees.