How does your bank handle debit card transactions?
Young and broke has a great post about how banks process debit card transactions.
Common belief seems to be that when you use your debit card at the grocery store, gas station, minimart, etc. the money comes directly, and immediately, out of your checking account.
…A good number of banks will hold the transactions to the end of the day to process them, and then process them from largest to smallest, leaving you vulnerable to extra fees.
What to do? Call your bank and ask them how they handle debit card transactions. While you’re at it, turn on overdraft protection. It’s better to lose a few cents in interest then $25 a pop in overdraft fees.
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