|Neil Turner Debit Card|
The use of debit cards can also be a major source of overdrafts.
- If it does not have that logo you may only use “Debit”. If you select “Debit” the machine will then ask for your pin number.
- If you select the “credit” option you will not need the pin. You only sign for the purchase or enter your zip code.
The most common POS networks are STAR, Interlink, and Plus. These are the same Networks used to get money from an ATM machine. When you use the card as a POS transaction it will be sent to the bank the same business day in which it is done.
This time it asks for your signature and or zip code. This time the transaction will go through the Visa or MasterCard Network.
This is different in a few ways.
Important note: This is NOT a credit / charge card. When you use a charge card or a credit card you build a balance which you pay back later. And a debit card whether you use “Debit” or “Credit” still comes out of your Checking Account.
Whatever the original amount authorized is, will often show as pending to the account. At a grocery store the amount will usually pend correct because the amount authorized was your final amount unless you realize after the card was swiped that there was a problem with the amount.
Also sometimes a problem with a purchase will cause more than one of the same amount from the same store to pend. These authorizations will typically show as pending for 3-5 business days before posting for the correct amount.
Sometimes when more than one of the same transactions pend, one will post and the others will still pend then disappear a few days later. This is because the merchant must submit an intention to finalize before the item can post.
You cannot know what hasn't posted without a written record.
This is not always true.
People who write checks are used to understanding that checks may be outstanding and if they call for the balance they have to account for checks that have been written and not cleared.
This may come as a surprise to some:
When you call or go online or check the balance at the ATM, you are not getting your real balance.
That balance doesn’t mean anything to you unless you understand how it relates to the transactions that have and have not yet cleared.
The Insider is a BIG fan of Dave Ramsey:
- Go read/listen/watch Dave Ramsey and he'll teach you how to do it right!
- Listen to The Dave Ramsey Show (HERE)
- Or by his most popular book: (HERE) The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness