(3/15/99)
Here's a story that might surprise you if you use a
debit card. As you know, the amount you spend is
taken directly out of your checking account.
But what
you might not know, is there are some rules that can
change your balance. News Specialist Stacey Butler
explains.
When you run your debit card through a gas pump, at
a convenience store or even a restaurant, the amount
listed on your receipt comes directly out of your
checking account, right?
Wrong. Many businesses
have what's called a pre-authorized limit. It's a way
merchants can make sure you have enough in your
account to cover your bill.
Here's an example. Let's say you buy $10 worth of gas. But the pre-authorized limit is $50. That means $50 is billed to your account. Ideally, you would be credited $40 immediately. But many bankers agree, sometimes the process takes hours, or even days.
A woman named Vicki told us, "You go to use it again and it may not work, because they're still using those funds, so your card may be denied."
Surprised? So were many bank tellers we talked to
and convenience store owners.
But Washington
Mutual Headquarters in Seattle, the Utah Association
of Bankers and Star Systems say the debit card
system isn't flawless.
Vicki says the message here is--keep close track of
your own records.
"You keep your receipt just like it was a check, then save that receipt until it comes through the bank, until it posts to your account."
The pre-authorized withdrawal is made by the bank
that handles the gas station's finances, not the gas
station itself. It's meant to protect the business.
Not all
gas stations do this, but those who do withdraw the
$50 are assured they will be covered for the cost of
the gas. That's assuming the average cost of a fill-up is
less than $50.
When you use your debit card at some restaurants
make sure you watch your balance carefully. You may
be billed 20 percent more than the price of the meal.
That amount usually is corrected, however, within
hours.
