The hidden cost of using a debit card 💳
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- čas přidán 19. 10. 2022
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If you don’t have enough money on your debit card to purchase something, the purchase will still go through. The bank covers it for you, and instead you have to pay a $30 overdraft fee. Usually, if you call the bank and let them know they can waive that fee for you!
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Thx for the step tip now I can use my debit card for things I could use :D
Ok after i reviewed why is it credit or other way secured credit?
I write the card numbers down.But I don't have the card.How can I reload the money on the same card ?
debit doesn’t go through credit does it’s the oppsite
Funny how I'm being taught the EXACT opposite in my financial math class currently.
Why
maybe do some research to find out which one is actually true
With certain banks you can choose an overdraft limit
depends on the bank and country
I like that the likes are 123
Misinformation like I’ve never seen it before I love it
Misinformation? How so?
@@HaloHighlightzin most banks debit cards have a option where it will give you a your own custom if you are about to overdraft mine is 200$
@@HaloHighlightzmost banks have a overdraft limit.
For example chase will not charge you a fee unless you go over 50$.
Idk if overdraft limit is the right word but I can't think of another one
This is completely true what are you on, you probably don’t have overdraft protection
It's different for different countries and banks so his information is neither correct nor false.
Credit cards get declined...? But... what about negative bal...BRO YOU SAID THE COMPLETE OPPOSITE!
Credit cards use money you don’t have debit used the money in the account
Credit cards have limits, and just like overdrafting, it's possible to go over those limits, but it varies on each transaction. Just like it does with a debit card
@@rwnly6330yea but the thing he said ab debit in the video is kinda lie you can turn it off so bank doesnt cover if you dont have sufficient money
@@IM2MERSthe only time I went over the limit was doing a balance transfer. I think I transfered exactly the credit limit over to that card but once they added the transfer fee, it went over the limit. I can't think of other situations which would cause you to go over the limit since banks generally decline when you exceed the limit. I never got got charged an over the limit fee, but that was a long time ago. So, I can't remember. Lol
Debit is your OWN MONEY THIS STUPIDGUY (not the comment above) DOSENTY KNOW WHAT DEBIT AN CRIDIT IS
Most debit card accounts typically have optional overdraft, dont forget to mention that.
I don't live in america
@@undergroundnet3907ok?
@@undergroundnet3907ok and?
@@undergroundnet3907not just in america
I was going to say that too! For my bank it's optional as well.
Overdraft is optional so if you aren't using it, the card will just decline if you don't have enough money.
Exactly
It depends on the card type. Visa Electron will NOT overdraft and Visa Debit will.
Overdraft is optional, if you don’t have it your bank will still process the transaction and charge you a $45 NSF (source: Canadian Banks)
@@DozIT For the bank I use the card just declines when NSF and there is no fee, it just declines in general
@@OptimaGamingTeam I should have clarified - for PAD (ie bill payment) or online transactions. In a store it would just decline with no NSF. A credit card however may still allow you to use it and charge an over limit fee unless you tell your bank to disable that -,-
Me: buys a lambo when i have 2 cents in my account
With the $30 dollar overdraft fee, it only costs you $30.02!!!
@@TropicalityCatyeah you still have to cover the cost but theres a fee on top of that, theres also a limit so after a certain amount it will decline
🤨 it's literally the opposite. Most debit cards decline and credit just run to ur credit limit. Also they have NEVER waved the fee for anyone I know
True, even then you have the mental capacity to not be a idiot and check your balance
I’ve had my fee waived cause my overdraft was then just transferring the money I needed from my savings
@@anthonymercado8126no it won't. I've done this b4
fr thats what im saying maybe its just in America
Wells Fargo does on certain limitations
I was so confused on why the debit card was the one going through when it should’ve been the credit card going through but the overdraft cleared it up
Mine is the opposite if i pay the amount that is more than what my account hold, its gonna refuse it
Same
Same
In my country it's the opposite. Debit cards are used to pay with the money from your account and by credit cards you just borrow money from the bank and then pay it off.
@x I don't know where they're from but It's same in my country and I'm from Czech republic
@@katakonirova836 I think this video is wrong. I am from Canada and it is the same here. Debit cards take the money directly from your checking account, while credit cards borrow the money from the bank which you pay at the end of the month.
@@katakonirova836 I’m from the US and it same with me lol
Me too
@@IcyySammi think its wrong too
I believe most debit cards in the US are a fusion element that work like a credit card to the bank. In my country, which is located in Europe, banks typically offer three categories: exclusively credit, with an applied limit, where the card holder pays back the bank with their checking account; 'hybrid?' cards where you own the money deposited on the card, but the bank can cover up to say €100 so you are not leaving empty handed from the store; and exclusively debit cards that WILL get declined if the funds do not cover the amount.
Fun fact if you use an online back like current or upgrade you wont get charged, lots of the time they wont let it go negative, also some have overdraft protection
You can actually make the choice when opening a checking account so it won’t go through if you buy somthing that cost more that what you have in the bank
Hum isn't that the opposite wtf
Yea it's the complete opposite
In Ukraine, credit cards can usually have personal funds alongside credit limit.
If you personal funds are over, the credit limit is used.
Then you transfer money to the card and credit is paid off.
You may even set credit limit to 0 (banks do this as well if a person has bad credit score) and use a card like it's a debit card.
It's often more profitable than debit card because credit cards usually have zero fees for transfers between cards.
Is this only in America because ive had debit cards decline many times
No I have a debit card that has gotten declined
It‘s pretty common in the US and UK only as far as I know
No this guy is just talking nonsense in this video misinforming people don't listen to him
Bro really got them mixed up
Some banks will let this happen but some banks will also not let the transaction go through
Time to buy a ps5 and only have to pay 30 dollars back
no, you have to pay for the ps5 and the overdraft fee, +interest
Most banks you can tell them not to do this when you get the debit card
I have overdraft turned off so I won’t be able to make that purchase and then owe the $35 for my babk
This doesn't happen in the uk. Over here debit cards decline if you arent signed up for overdraft
I like capital one because instead of allowing overdraft it just doesn’t let the transaction go through. I’m not paying an overdraft fee cause my money was in my savings instead of my checking
bro was yelling in lowercase 💀
That’s why I use my credit card. You always have to keep track of how much you have left.
Tip you can put on overdraft protection to stop this from ever happening.
MISINFORMATION FOR SURE
not true, debit declines if you dont put overdraft
My bank only dose the overdraft for things that are monthly if I try to buy at a store it declines instead
My card gets declined if I don't have money and it ain't a credit card
Yeah I think the guy got mixed up with debit and credit
?
@@Sphyxxhe meant a debit card declines if it doesnt have money on it and a credit card gets you into debt
Imagine trying to buy a Lamborghini and your card declined but it still goes trough, and your bank calls “hey you went over board, that’ll be $30”
me “politely asking” the bank to waive $4,109,175,113:
My debit card doesn’t do that if u don’t have enough it won’t go through
I was told when I got my debit card a few weeks ago that if I don’t have enough money in my account, it takes it from my savings and then when my savings goes to zero I get negative
His voice is so soothing.
This depends on where you live and your bank, at my bank is the other way around
Bro chose opposite day to teach us a "lesson"💀
I’m subscribing for sure
This is a fulse statement. As someone who had their debt card declined, the bank can but does not always give over draft. And I use to pay to have over draft. Be sure to know what your bank does. As bouncing your debt will lead to double the cost and no sale.
You can actually make it to where the card will not go through. You need to let your bank know that you do not want that service of them, letting purchases go through without the money being in the bank and they can make it to where the card is declined if there are insufficient funds
Thank you so much because I just got my first debit card today so thank you
In most countries you will need to have given your bank written permission to allow them to give you overdrafts
I have had a credit card approve at POS, only to be charged an “over limit fee” after getting upset with the bank (as I would have used a different card) they said it was a new opt-out feature.
This works with some but no all cards. Not all accounts allow the overdrafting fee, and some places will allow one overdraft fee a month for free even. You gotta specify dude, this isnetting people up to be embarrassed.
I'm going to be getting a debit card at some point this year so this is helpful
Don’t listen it’s wrong.
@@xmsre oh......damn it
I don’t have seen debit cards get declined too when I don’t have enough money to cover the purchase
Well most banks when you set an account up with them you can opt out of something called overdraft protection that will decline any charges that are made that would put your account into the negative
that’s how it look like my parents are rich
Most banks don’t charge a fee unless the overdraft is over a certain amount Chase for example is 50$
I will use this tip for my Debit Card.
Funny until you realize that you also have two dollars in your bank account
Credit cards crying as their use has been forgotten
capital one doesn’t have overdraft fees but they will restrict and lock you out of the account if you take too long to pay it back
For the girls watching: Debit = Free Money. Credit = Brokie.
You can turn off your overdraft.
That’s my advice.
He’s half right. You also got the option for your debit cars to decline depending on how much you got
There usually is no fee but a high interest rate if your debit card allows going into debt anyways.
You can definitely go over the limit with a credit card...
I have it turned off for my bank account, only thing that puts me in overdraft is travel fees and I never get any extra charge for it
My debit card got me overdraft, because I thought it'd get declined. I was wrong.
If you have a debit card for a credit union they have a selection to decline without using overdraft protection. So is this the same?
Not always true. Mine would get declined. Also, maybe if you only have $2 left on your account you should be extra cautious what you buy, and not just let yourself find out once you already got yourself an overdraft fee?
I’m glad my bank doesn’t charge me for over charge fee as long as I don’t go past my $500 limit of overdraft protection.
Debit cards only go through depending on the bank and most times you can opt out and the bank will decline the transaction instead. Credit cards only decline if you hit your limit which is a bad idea.
My bank doesn't do that; it only lets you charge what is in your account.
Bro debit card is your own money and credit card is banks money bro messed up💀💀
You can also turn it off so it will just decline the card
He got them mixed up
Better to have a bank that covers overdraft with no fees, on second thought better to not overdraft at all- what are you *DOING!?!*
The overdraft fee should be like 10 dollar overwhat you owe man
Yeah, in the Philippines debit cards get declined even if you lack .50 php, maybe less..
That means you have unlimited money that means you could buy the earth
I have never seen a debit card clear a transaction that the account it was tied to couldn't pay.
Also overdraft fees like that are illegal here. Worst case scenario they can charge you something like 9% interest per year on the overdraft, but even that is an insane number.
Most banks do not care about overdraft at all so long as you settle it within a month of accruing the overdraft.
Credit is credit.
If you below your reputation, it will go down.
But if you try to go below your oxygen, it won’t go down, it will just stop.
I was over drafted on a payment at noon, realized it by chance on my app, payed my overdraft at 3:04 and they told me "after 3 is thr next business day. Sorry 😊"
Brush up more on this and try again. Review the Reg E changes back in 2008/2009 and how that impacts things!!
You got it wrong that’s the complete opposite
Instructions unclear, I now owe 60$ for wasting their time.
Mine just declines it, you literally have to confirm rather or not you want to allow over-drafting or not when you’re making your account. Just contact your bank and have them change it over.
I knew this since I was 5 [my father taught me]
Never use a debit card for anything other than withdrawing and depositing at an atm. Ever. Credit cards only.
You can turn off overdraft coverage
me buying something that costs more than what the bank has so the bank goes bankrupt and I don’t have to pay cuz they are in shambles
My Debit card doesn't go over. They gave the option in very fine print to disable it. So if you call your bank and ask them to make it so you can't go over they will disable that ability.
This is so disingenuous. Debit cards can also be declined if that's how you set your account up.
I have always seen most debit cards decline, credit cards always go through
That’s incorrect in Canada. The debit card can and will get declined if sufficient funds aren’t available in the account.
Nah, the hidden cost of a debit card is your money being not physical. As we move on to digital currency, our money slowly dissolves.
Wrong card bro. Credit goes through when you don't have enough and debit gets declined
I've had a couple overdrafts in my account before. But most of the time I am declined when I have no money in my account.
Use debit cards when you’re teaching your child to be mindful of money. Use credit cards when you’re an adult.
Bro i went to wendys one day and had a dollar and said fuxk it idc if i get a $30 overdraft and it kept declining me so i did a balance inquiry and the fee charged my card -$3.00 so i than i got to pay it back and never git my Wendy's
I over drafted 1800 dollars on my card and never paid 😂
That is only if the person doesn't setup over draft setup
Not necessarily, you could also ask your bank to decline your debit card if you don’t have enough funds on the card to cover the full price.
Bro really had 2 dollas in them account
My debit card has literally been declined multiple times 😂
Normally they don’t charge you a fee for anything under a specified amount