Tilted Forum Project Discussion Community - View Single Post

Martian · 05-12-2009, 08:38 PM

I would guess that if you asked the right person you'd get a lot of info about processing times and such. I don't know a whole lot about how the US banking system handles such things, but it sounds pretty backward.

In Canada we have an intermediary for the purpose, known as Interac. I believe it's jointly owned by the major banking institutions here. All debit transactions (including both ATM and point of sale transactions) are performed through the network, which is tied into the banks. If the funds aren't in your account at time of purchase, you won't be able to complete the transaction.

There is generally no fee to have or use the service at point of sale, although there is usually a fee for ATMs other than the ones branded as belonging to one's own financial institution.

I've never been interested enough to research the details of how it works.

Interestingly, overdraft protection is handled differently here as well. Rather than tying to your credit card, overdraft in Canada exists as a small line of credit attached to your account. This provides a lot more flexibility, and means that if I go over my balance by $1.50, I pay interest on $1.50 and not $100. Or I would if I had overdraft protection, which I've never felt the need to establish.

There have been a couple of rare occasions where I miscalculated and overdrew my account by a few dollars. This is invariably an end of the month thing and is the downside to the Interac system (easy to overshoot by small amounts). In those instances my bank has simply processed the order and charged me a $5.00 processing fee; I have no problem with this, as I consider the fee to be reasonable and it is, after all, my own damned fault. I very much would have a problem if the fee was $35, however.

I have no idea if this is standard way such instances are handled when overdraft protection is not in place. I would assume it's either because I have funds in my savings, or because I've been making regular deposits to that account for about a decade.

As an aside, a debit card in the US seems to be a very different thing from what it is here. It's impossible to get a bank account without one here and has been for quite some time. I quite literally use my debit card for everything these days. Even when I go to the actual flesh-and-blood teller I have to swipe my card and enter my PIN before she'll talk to me. Upside, aside from cashing a cheque I never have to sign for a damned thing.

Other than that, I can only parrot what's already been said (and is, incidentally, also known as Martian's Secret to Debt Free Living): don't spend money you don't have.

05-12-2009, 08:38 PM	#6 (permalink)
Martian Young Crumudgeon Location: Canada	I would guess that if you asked the right person you'd get a lot of info about processing times and such. I don't know a whole lot about how the US banking system handles such things, but it sounds pretty backward. In Canada we have an intermediary for the purpose, known as Interac. I believe it's jointly owned by the major banking institutions here. All debit transactions (including both ATM and point of sale transactions) are performed through the network, which is tied into the banks. If the funds aren't in your account at time of purchase, you won't be able to complete the transaction. There is generally no fee to have or use the service at point of sale, although there is usually a fee for ATMs other than the ones branded as belonging to one's own financial institution. I've never been interested enough to research the details of how it works. Interestingly, overdraft protection is handled differently here as well. Rather than tying to your credit card, overdraft in Canada exists as a small line of credit attached to your account. This provides a lot more flexibility, and means that if I go over my balance by $1.50, I pay interest on $1.50 and not $100. Or I would if I had overdraft protection, which I've never felt the need to establish. There have been a couple of rare occasions where I miscalculated and overdrew my account by a few dollars. This is invariably an end of the month thing and is the downside to the Interac system (easy to overshoot by small amounts). In those instances my bank has simply processed the order and charged me a $5.00 processing fee; I have no problem with this, as I consider the fee to be reasonable and it is, after all, my own damned fault. I very much would have a problem if the fee was $35, however. I have no idea if this is standard way such instances are handled when overdraft protection is not in place. I would assume it's either because I have funds in my savings, or because I've been making regular deposits to that account for about a decade. As an aside, a debit card in the US seems to be a very different thing from what it is here. It's impossible to get a bank account without one here and has been for quite some time. I quite literally use my debit card for everything these days. Even when I go to the actual flesh-and-blood teller I have to swipe my card and enter my PIN before she'll talk to me. Upside, aside from cashing a cheque I never have to sign for a damned thing. Other than that, I can only parrot what's already been said (and is, incidentally, also known as Martian's Secret to Debt Free Living): don't spend money you don't have. __________________ I wake up in the morning more tired than before I slept I get through cryin' and I'm sadder than before I wept I get through thinkin' now, and the thoughts have left my head I get through speakin' and I can't remember, not a word that I said - Ben Harper, Show Me A Little Shame