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On nationwide's website, while looking at the summary for its Flex account i came to this text;
'Charge for transaction unpaid - insufficient cleared funds; �28.50 per transaction'
Does this mean if i am buying online and i try to buy something i don't have the funds for in my account (by mistake) that i would be charged �28.50 ?
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Cheers Loosehead,
i am also with HSBC and i use their solo card online, over years i have came across situations where i didn't have the funds (usually through paypal payments & other online payments) but have never had any such charge requested or taken from me.
I guess HSBC has different ways of dealing with things than NW.
I don't think the charge would appply to the circumstances you describe.
When you try and pay for something with your switch or solo card and you don't have available funds, the transaction is 'declined' so never actually puts you into an overdraft situation.
The charge is normally taken when a cheque or direct debit is applied which takes you overdrawn, they return the cheque/debit unpaid and charge you for the privilege.
I'm with Sammy on this one, this charge sounds like it's only for a cheque or direct debit/standing order which bounces.
If you try to use your card and there isn't enough money, the payment will either be dclined free of any charge or it'll take you overdrawn, in which case you may be charged a different fee.
If you try to use your card and there isn't enough money, the payment will either be dclined free of any charge or it'll take you overdrawn, in which case you may be charged a different fee.
Thats not the case I'm afraid. I never use a cheque book but have had 2 seperate over draft charges in the last two months (the last one was me going overdrawn when they took the over draft charge out of my account, the irony of it all eh).
Do you really thing the banks will pass up on the chance to make money out of you. When you're at the till in Tesco's there isn't a direct line to your bank account checking the funds, depending on the retailer they check maybe 1 in 5, some they don't even bother. Therefore it's normal for the retailers to present a transaction to the bank which results in your account going overdrawn.
It's a great money making scheme for the banks.
Do you really thing the banks will pass up on the chance to make money out of you. When you're at the till in Tesco's there isn't a direct line to your bank account checking the funds, depending on the retailer they check maybe 1 in 5, some they don't even bother. Therefore it's normal for the retailers to present a transaction to the bank which results in your account going overdrawn.
It's a great money making scheme for the banks.
Hmm i see, but my account hasn't got over draft set up(it says i can apply for 1, but since i don't have a job there isn't much point is asking).
BTW i am refering to the use of the Visa Debit Card.
In anycase, i guess the most mature way to deal with this is to just make sure i have enough money in my account before buying anything.
Visa Debit Card is the same as a Switch card. It is gauranteed by the bank up to a certain limit (usually �50). This means that when using it for payment you the bank have to pay it for you whether you have the cleared funds or not. If you do not have the cleared funds you get charged.
It is different for Solo and Electron cards as these are not gauranteed payment methods. You can still go over your limit with these cards by using cash machines for small amounts. The banks class these as emergency withdrawls (eg run out of petrol etc) but if you ask me it is just another reason to charge you!
I don't want to lecture but there's glaring misconceptions here about how your debit cards work (WoWo and Gevs). The best advice has come from the guy posting the question : check your balance before you try to spend the money.
Some things that stores do, the poor (yes I see the irony!) banks are getting the blame for.
I'm not saying that the bank won't charge you if a debit card payment takes you overdrawn (sometimes, believe it or not, this overdrawn balance isn't the bank's fault), just that the original question doesn't refer to this : that charge is for something "bouncing".
Some things that stores do, the poor (yes I see the irony!) banks are getting the blame for.
I'm not saying that the bank won't charge you if a debit card payment takes you overdrawn (sometimes, believe it or not, this overdrawn balance isn't the bank's fault), just that the original question doesn't refer to this : that charge is for something "bouncing".
Stevie21, to quote the original question, "Does this mean if i am buying online and i try to buy something i don't have the funds for in my account (by mistake) that i would be charged �28.50 ?"
Presumably if he is buying online he would be using a Debit Card and like I said Switch and Visa are methods of Gauranteed payment up to a certain amount. The bank HAS to pay this for you if it is within this amount whether you have the cleared funds or not and therefore not 'bouncing' anything. It is the same with a cheque and gaurantee card, they have to honour the cheque. If this amount takes you over your limit you get charged, simple as that! 'Bouncing' is when you don't have a gauranteed method of payment and try to pay for things using a cheque for example and then when it is cashed the funds are not in your account. The bank is not obliged to pay this for you and will 'bounce' the cheque leaving you with a penalty charge and liable for prosecution if the debt is not settled.
The point I was making about Solo and Electron cards is they are issued to you with the pretense of it not being possible to go overdrawn but this is not the case. Recently I checked my balance and it said I had the available funds but when my statement came through I was overdrawn and had been charged for the priviledge. I complained to my bank because I had checked my balance and they fed me that cr*p above about 'emergency' withdrawls!
I agree that you should check the balance but it is not always as simple as that when it comes to banks charges!
Gevs, you cannot be charged (to quote the original question) "�28.50, transaction UNPAID" for a payment which you are saying is guaranteed and therefore paid.
In quoting the original question you're quoting someone's misconception about Nationwide's charges. It seems as though you've taken the existence of this quote as confirmation of a Nationwide policy which doesn't exist. I hope that doesn't sound cheeky as it's genuinely not intended to be!
If the charge was "Charge for transaction PAID - insufficient cleared funds; �29.50 per transaction" then I'd be agreeing with you. However if you try to use your card and the transaction is unpaid/declined at point of sale then this costs nothing in bank charges.
2 other points : there is *plenty* else in your last answer that I would say is factually inaccurate but I don't see the benefit of addressing every single point there - unless you really want me to clarify.
Secondly, and more importantly for "thatguy5" - the Nationwide account
http://tinyurl.com/3kar2
alluded to in the question is a good 'un. If you're shopping around, I don't think you'll find many that are much better.
In quoting the original question you're quoting someone's misconception about Nationwide's charges. It seems as though you've taken the existence of this quote as confirmation of a Nationwide policy which doesn't exist. I hope that doesn't sound cheeky as it's genuinely not intended to be!
If the charge was "Charge for transaction PAID - insufficient cleared funds; �29.50 per transaction" then I'd be agreeing with you. However if you try to use your card and the transaction is unpaid/declined at point of sale then this costs nothing in bank charges.
2 other points : there is *plenty* else in your last answer that I would say is factually inaccurate but I don't see the benefit of addressing every single point there - unless you really want me to clarify.
Secondly, and more importantly for "thatguy5" - the Nationwide account
http://tinyurl.com/3kar2
alluded to in the question is a good 'un. If you're shopping around, I don't think you'll find many that are much better.
"Visa Debit Card is the same as a Switch card. It is gauranteed by the bank up to a certain limit (usually �50). "
This (2nd sentence) is incorrect. If you make a payment of �5 with a visa delta card and the shop you're spending it with has a "shop floor limit" of over �5 (most don't set it as low as a fiver) then the authorisation process is skipped completely and you can spend money that you don't have.
The merchant will give you �5 of sweets on the assumption that everyone has at least a fiver in their account. The bank don't see the transaction as it takes place, only a few days later when the money leaves your account. In this way, the bank don't have the opportunity to decline it at point of sale and given that you've long since eaten the sweets they must pay the merchant. These small payments can take you overdrawn as the bank has no chance to decline them.
If, however, a merchant is commonly targeted by fraudulent debit card payments (mobile phone top ups) then it is possible that they have no floor limit and every payment is authorised. Thus, an attempt for a �5 payment WILL have to be authorised by the bank and in this case the bank could very well choose to decline it if the cardholder has insufficient funds.
I'm absolutely not here to bicker or argue but many people don't understand how debit cards work (in this dull level of detail) and these misconceptions are being regurgitated in this thread.
You're describing floor limits of *shops* in your quote, not limits decided upon by banks. The important difference is that customers will blame the bank for allowing this �5 debit to make them overdrawn when the bank didn't see it in advance and didn't have the option of declining it. The customer, on the other hand, has the option of checking their balance before using the card.
This (2nd sentence) is incorrect. If you make a payment of �5 with a visa delta card and the shop you're spending it with has a "shop floor limit" of over �5 (most don't set it as low as a fiver) then the authorisation process is skipped completely and you can spend money that you don't have.
The merchant will give you �5 of sweets on the assumption that everyone has at least a fiver in their account. The bank don't see the transaction as it takes place, only a few days later when the money leaves your account. In this way, the bank don't have the opportunity to decline it at point of sale and given that you've long since eaten the sweets they must pay the merchant. These small payments can take you overdrawn as the bank has no chance to decline them.
If, however, a merchant is commonly targeted by fraudulent debit card payments (mobile phone top ups) then it is possible that they have no floor limit and every payment is authorised. Thus, an attempt for a �5 payment WILL have to be authorised by the bank and in this case the bank could very well choose to decline it if the cardholder has insufficient funds.
I'm absolutely not here to bicker or argue but many people don't understand how debit cards work (in this dull level of detail) and these misconceptions are being regurgitated in this thread.
You're describing floor limits of *shops* in your quote, not limits decided upon by banks. The important difference is that customers will blame the bank for allowing this �5 debit to make them overdrawn when the bank didn't see it in advance and didn't have the option of declining it. The customer, on the other hand, has the option of checking their balance before using the card.
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