Consumer Payment Card News

Debit Sting

A new report has found that in-store debit card purchases that cause an overdraft cost $2.17 for every dollar borrowed. By comparison, check-triggered overdraft loans cost $0.86 per dollar borrowed. The study by the Center for Responsible Lending says some 61% of the 2,400 surveyed preferred that their debit card purchase be denied at the checkout if it would otherwise overdraw their account and incur a fee. Nearly all responded that they would cancel their ATM withdrawal to avoid a fee. The report, “Debit Card Danger,” analyzed the checking accounts of more than 5,000 customers of the nation’s 15 largest banks and found that debit card purchases and ATM withdrawals trigger 46% of high-cost overdraft loans. for more information visit: “www.responsiblelending.org”:http://www.responsiblelending.org.

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