Dollars & Sense

Using Your Debit Card At The Pump Just Got Complicated

2008-06-17T14:50:00

Have you recently swiped your debit card at the pump and then were confused when you looked at your transaction history online? Or, were you frustrated when the pump stopped distributing gas when you hit $75? In today's blog, we'll help unravel the mysteries of swiping your debit card at the pump.

In some instances, gas stations will "validate" or preauthorize your debit card for $1, or possibly even $5. In these instances, there is no dollar limit on how much gas you pump. If you log on to online banking after you fill up, you will see only the $1 or $5 charge. It may take up to five days for the full transaction price to be debited to your account. At that time, the $1 or $5 preauthorization charge will no longer apply. Tricky, I know. The safest best is to record the full amount of the transaction at the time you fill up your car.

In addition, some stations set a max charge amount on debit cards. Currently many stations have the max charge set to $75. If it takes $100 worth of gas to fill up your car and you are using your debit card, it will take two transactions. You'll be able to put in $75 worth of gas in your first transaction. Swipe the card again and you can fill up the rest of the tank.

Remember that these "limits" are set at the merchant level not at the bank and the dollar amount can vary from merchant to merchant.

Do You Know Who Your Beneficiaries Are?

2008-05-01T10:43:00

If something should happen to you, do you know where your money will go? As time passes, it is not uncommon for people to forget to periodically check the beneficiaries on investments and particularly Individual Retirement Accounts.

When looking at bank accounts or IRAs, it is very important to have a Payable On Death (POD) on an account. The POD trumps any other legal document because a bank always follows the account titling.

Gone Smishing?

2008-04-28T15:13:00

Have you heard about the latest trick online scammers are using to try and trick people into providing personal information? It's called smishing. Funny name, right? It means sending text messages, or mobile spam, to a cell phone. The message might ask the recipient to register for an online dating service and then try and submit a "worm" into the mobile device. The worm is a virus that corrupts the network, or even worse, is mobile spyware.

Other text messages may tell the recipient they will be charged for a service unless they go to a specific website and cancel the service. Once on the website, the user is asked for personal account or credit card information. Lesson of the day: If you receive a text message from someone you don't know, delete it. Never respond or provide any personal information. In addition, never provide account or credit card information on a website after being promoted to do so from a text message or an email.

What We Do With The Money

2008-04-26T17:25:00

I think it is a common misconception that a bank has millions of dollars sitting in its vault. Truth is, when a customer opens an account and makes a deposit, the majority of the money leaves the bank almost immediately.

Where does the money go? Well, it doesn't disappear into thin air. Banks use deposits to fund loan commitments...both commercial and consumer. In addition, banks send money to the Federal Reserve on a daily basis for safe keeping. Think of the Federal Reserve as a bank's bank. Lastly, it isn't uncommon for a bank to invest deposits.

It Used To Be a Toaster, Now I Can Get an iPod!

2008-03-06T12:28:00

Why would a bank give an iPod or another great gift just so you’d open a checking account with them? The short answer – because your deposit account, along with hundreds or thousands of others, is the lifeblood of a bank.

When banks were more local (and there wasn’t a bank on every corner), depositors did not have a choice – they banked with the only bank that was close. Because there wasn’t much competition, banks did not have to offer attractive interest rates, free checks, iPods…or $40 gas cards (which is what we’re currently offering). This is good news for you, the consumer. Your checking account is important to your bank!

Next week, I’ll discuss what banks do with these deposits.