Wed
Nov 12 2014
07:40 am
Another reason to not use your debit card
By: bizgrrl

"Dozens of people in the area were charged anywhere between $8,000 to $99,000 for a dinner at a local restaurant", The Chop House on Chapman Highway.

he's thinking about tearing up his debit card.

On Tuesday, October 21, 2014, many customers of The Chop House on Chapman Highway were accidentally overcharged for their meals. If your bill was $27, you might have been charged $27,000. If using a debit card, that would certainly be a hit to your checking account.

The Chop House is correcting the problem and "helping to pay overdraft fees." However, if using a debit card, the overcharges drained accounts and possibly caused overdraft fees on subsequent transactions. Will The Chop House cover those fees as well? Will The Chop House cover interest charged on credit card accounts?

If you use a debit card, your personal cash is affected by provider mistakes. If at all possible, use a credit card or hit the ATM for cash to avoid these temporary cash flow problems.

Topics:
Rachel's picture

This is one of the many

Submitted by Rachel on Wed, 2014/11/12 - 2:47pm.

This is one of the many reasons I don't use debit cards.

Anonymous08765443's picture

I can get your name, address,

Submitted by Anonymous08765443 (not verified) on Thu, 2014/11/13 - 1:39pm.
(in reply to Rachel)

I can get your name, address, checking acct and routing # in addition to your dl and home # from your check. Stull sound secure to you?

bizgrrl's picture

Nothing's entirely secure.

Submitted by bizgrrl on Thu, 2014/11/13 - 3:09pm.
(in reply to Anonymous08765443)

Nothing's entirely secure. How are you going to get my check?

Tamara Shepherd's picture

*

Submitted by Tamara Shepherd on Wed, 2014/11/12 - 3:46pm.

Respectfully disagree, as grown-ups should have overdraft protection on their checking accounts.

We have two tiers of protection--first to savings, then to a line of credit (on which we don't owe anything).

Whether the merchant or bankcard error is $2700 or $27000, the bank will pay it.

And when we put balances on our credit cards, not all of us are religious about paying them off promptly.

bizgrrl's picture

Many people would not have

Submitted by bizgrrl on Wed, 2014/11/12 - 4:54pm.
(in reply to Tamara Shepherd)

Many people would not have $27,000 to handle overdraft protection, whether it be in savings or a line of credit. Congrats to you.

It is much more of a pain to lose your cash, even temporarily, than it would be to get your credit card balance corrected.

Anonymous08765443's picture

I dont know any bank that

Submitted by Anonymous08765443 (not verified) on Thu, 2014/11/13 - 1:42pm.
(in reply to bizgrrl)

I dont know any bank that would not let you dispute the charge and credit your account within 24 hours.

bizgrrl's picture

It's happening in this very

Submitted by bizgrrl on Thu, 2014/11/13 - 3:10pm.
(in reply to Anonymous08765443)

It's happening in this very instance. Read the articles.

R. Neal's picture

Why You Should Never Use Your

Submitted by R. Neal on Wed, 2014/11/12 - 4:09pm.

Why You Should Never Use Your Debit Card

5 reasons using a debit card is dangerous

Tamara Shepherd's picture

*

Submitted by Tamara Shepherd on Wed, 2014/11/12 - 4:47pm.
(in reply to R. Neal)

Don't mean to start any pissing match here, but I did read both links and I'm not persuaded...

I've already answered the point concerning overdraft charges--and enrollment in such a plan where I bank, at ORNL FCU, is free, so I'm not grasping this related concern over "costly fees?"

And provided one has overdraft protection, it shouldn't matter, either, if gas stations or hotels place any holds on one's checking account. I think that one reference the article made to "undisclosed" holds is in error. Gasoline pumps, at least, disclose any such policy in writing on the face of the pump.

Neither is it very likely I would go over 48 hours not knowing my debit card was lost or stolen because, as you surmised, I use it daily.

As for ordering online, I've done that twice in my life.

Anyway, we cut up our credit cards and paid off our debt seven years ago, when my mom passed, and that's the way we want to live forever more--on a cash (or debit) basis.

To each his own, I guess. I'll bow out...

R. Neal's picture

One who uses a debit card for

Submitted by R. Neal on Wed, 2014/11/12 - 5:53pm.

One who uses a debit card for budget/discipline purposes can accomplish the same thing with a credit card plus get the extra protections that come with a credit card.

For example, you could record every credit card purchase like a check/debit in your checkbook and reduce the balance accordingly. Then when you get your credit card statement, add the total due back to your checking balance and write a check to pay off the credit card balance.

Same difference.

R. Neal's picture

That's a good point.

Submitted by R. Neal on Wed, 2014/11/12 - 6:40pm.
(in reply to metulj)

That's a good point.

R. Neal's picture

Except, we're basically

Submitted by R. Neal on Wed, 2014/11/12 - 6:53pm.
(in reply to metulj)

Except, we're basically talking about grocery, gas, and walking around money for most people. Major stuff like mortgage/rent, car payments, insurance, etc. would typically be paid by check or draft.

Your landlord doesn't take checks? So you have to go see him/her every month to swipe your card? Can't they do a draft or something?

R. Neal's picture

Ah, you can at least pay thru

Submitted by R. Neal on Wed, 2014/11/12 - 8:05pm.
(in reply to metulj)

Ah, you can at least pay thru a website. That seems reasonable enough.

bizgrrl's picture

Tennessee is a cheap place to

Submitted by bizgrrl on Wed, 2014/11/12 - 6:54pm.
(in reply to metulj)

Tennessee is a cheap place to live, but then so are most Southern states. We were a little surprised that Florida was about the same as Tn.

I would never say living in the NE is beyond someones means. You go where there are good jobs. My nephew recently moved to an area near Rutgers. I am very happy for him.

Rachel's picture

I may be one of the only

Submitted by Rachel on Wed, 2014/11/12 - 9:30pm.

I may be one of the only people left on the planet, but I write checks or pay cash rather than use debit cards. And I don't (usually) get cash from ATMs. We bank at a credit union, and one of us runs in there and gets cash.

Credit cards for bigger purchases. I'm not sure I even remember the PIN for my debit card.

Min's picture

I still use checks for bills.

Submitted by Min on Thu, 2014/11/13 - 1:38am.
(in reply to Rachel)

And I'm trying to wean myself off my debit card for daily expenses.

bizgrrl's picture

Nah, you're not alone. We

Submitted by bizgrrl on Thu, 2014/11/13 - 6:51am.
(in reply to Rachel)

Nah, you're not alone. We write checks for all bills. Do not carry a check book, though, only a credit card or ATM card for cash.

Tamara Shepherd's picture

*

Submitted by Tamara Shepherd on Wed, 2014/11/12 - 11:02pm.

I either get cash back for free on using my debit card for a purchase somewhere or else go to Weigel's, where ATM withdrawals are free at their every store (and there's one on every street corner in Knoxville).

Pam Strickland's picture

None of y'all ever heard of

Submitted by Pam Strickland on Thu, 2014/11/13 - 3:47am.

None of y'all ever heard of using the drive thru at the credit union/bank? I never use the ATM. That's crazy.

reform4's picture

No-Fee ATMs

Submitted by reform4 on Thu, 2014/11/13 - 3:46pm.
(in reply to Pam Strickland)

All Weigel's.

bizgrrl's picture

Follow-up news story. At

Submitted by bizgrrl on Thu, 2014/11/13 - 7:27am.

Follow-up news story. At least one guy is still trying to get his $27,000 back. Wonder how he is paying for necessities? Another guy was out $55,000 for a full day. He reported the problem on a Saturday and got his money back on Monday. Hope he had what he needed to get through Sunday. Knoxville TVA Employees Credit Union is giving affected customers credit until the problem is resolved by the credit card processor and restaurant. Thus, those debit card users still are out their cash but at least have money to spend.

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