A general overdraft question Watch

in_vogue
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#1
Report Thread starter 10 years ago
#1
I wish I knew more about banking!! Anyway :p:

Why are some people on this forum saying stuff like ''Just whatever you do, don't take out past your overdraft limit without asking them, they'll charge you, etc etc'' or any variation on that? I don't understand because I think with my bank (Barclays) once I've hit my agreed limit the ATM just spits my card out and tells me I don't have sufficient funds...
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fourr
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Report 10 years ago
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You can definitely take more out of your account than you have (more than your overdraft amount,) although, maybe it works differently with the ATM and you can only be overdrawn if you wrote a cheque for more than you had or something..

I'm not really that good at bank-stuff either. lol.
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dogtanian
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#3
Report 10 years ago
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Some debit cards (though not electron and I think not Solo either) allow small transactions to go through, without checking there are funds in the account. Small transactions could be anything up to a tenner. If you bought a coffee and a sandwich say, coming to about a fiver, the card and the sale can still go through, even if you're only a pound from your overdraft limit.


ATMs are different, they will ALWAYS check the account before saying how much you can take out.

There are other reasons too, for example a shop not claiming your cash after you use your debit card at their business as soon as you realised, so you spend before that money has come out, or you not realising a direct debit was due (the small transaction thing applies again here, so if you're only a few quid short of the amount to be debited,it can eat into your unapproved overdraft).

If you only use an ATM to spend, then this won't happen. However, with debit cards, cheques and direct debits, few use their current accounts in that way, so going overdrawn is a risk.
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jacketpotato
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Report 10 years ago
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^ As above. ATMs wont let you take money out, but anything else will bounce and you could be faced with a rather hefty processing fee for going overdrawn.
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