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0 pointsjstarfish3y ago0 comments

It is a discount to that customer demographic.

For debit cards, imagine your account has $0.01 in it and about to be overdrawn. Each transaction from here on out will net you a $35 overdraft fee.

Accounting for the fees, would you rather have 5 immediate charges of $1, or 1 delayed charge for $5?

For credit cards, there's no overdraft, just a hard cutoff.

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4 comments · 1 top-level

prirun3y ago· 3 in thread

> For debit cards, imagine your account has $0.01 in it and about to be overdrawn. Each transaction from here on out will net you a $35 overdraft fee.

Everyone using a debit card, especially if poor, should disable overdraft protection at the bank. The fees will eat you alive otherwise.

baremetal3y ago

be careful I disabled overdraft protection and my bank had an additional layer "courtesy pay" that also changed an overdraft and they didn't tell me about it. I found out the hard way.

NoZebra120vClip3y ago

Yep, same here - there is no escaping the predatory fees. Also, vendors go nuts if your purchase is declined for any reason now. They will cut you off. So you can't win for trying.

Spooky233y ago

Nobody should ever use a debit card.

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