I, like many Americans, have found the convenience of using my debit credit card for my everyday purchases. But what some people are unaware of are the unexpected charges or problems that can come with using them–especially at the gasoline pump.
So we know how debit credit cards work–when you swipe your card, it’s as if you have paid with cash. This means you better have enough money in your checking account. No problem, you think. You’re running low in your account, but you’re only going to top off your tank and spend $10.
But when you swipe your card at the gasoline pump the bank does not know how much money will be spent until after you have finished pumping your gas. To avoid not getting paid, some station owners allow the bank to set aside some of your money, sometimes $20 or more. What’s the problem with this? A gas station may take up to 3 days to send in their bulk transactions. This means you may end up bouncing a check even though you had the $10 to top off your tank but not the $20, $50, or $100 the bank set aside.
Going inside to pay won’t help much either. Many banks charge their customers between 50 cents and $1 for using a debit credit card in any transaction where you use your PIN. According to Yahoo Finance, “The American Bankers Association estimates only 13 percent of consumers pay these fees, but critics say the practice is on the rise and consumers are often unaware of these charges.”
Thus, debit credit cards may not be as convenient as they’re made out to be, possibly costing you more money in the long run. Consider paying with cash as the gasoline pump or use a credit card that you can pay off right away when the bill comes. Stay smart out there.
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