US Bank overdraft fees, daily negative balance fees Dubuque Iowa

What US Bank did in that situation is no different than any other bank would do; they all have identical policies. What happens is that the bank will sort your debits in descending order, which means all of those transactions will incur NSF fees. If the people at the bank told you to look over the bank's policies - then they were 100% CORRECT to tell you that.

It really is as simple as stopping the use of your debit card, keeping an accurate check register, and making certain you don't try to race your deposit ahead of your debit transaction - unless you can run faster than the speed of light. If you do all of these things, you'll never have another problem with ANY bank. If you fail to heed this advice, you will have this problem no matter which bank you're with.

Best of luck to you.

Virtually every major bank that I can think of processes transactions from largest to smallest. You don't have to like it but to single out US Bank is not looking at the whole picture. It's not mind boggling, it's an industry standard,

The scenario that you described could have been averted with a ledger or a check register. Let's say that I had a thousand in my account. I knew that there was a $995 check or an auto payment coming up. I enter that into my ledger and see that I only have five dollars left. I don't know why I would want to use my debit card to pay for $1 transactions, but let's say that I did. My ledger tells me that I only have $5 in my account. I know not to spend more than $4.

The US Bank fee schedule says that overdraft fees are charged per occurrence. We all sign off on that. It's the same at every other major bank. Five overdrafts will result in five fees.

Now if we take your scenario and simply withdraw $5 from the account, then only one overdraft fee would have been charged.

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Keeping a ledger is of course a good, workable solution. But if you error, what US Bank does afterwards is truly mind boggling. Here is an example:

Account Balance $1000
You make 5 debit card purchases on Monday for $1 and the money is made unavailable in your account awaiting the merchant to send the transaction through ($995 available;$1000 balance). On Tuesday you make a debit card purchase of $1000. Now your thinking that you just overdrafted this by five dollars and you owe $37.50 in overdraft fees. Well, not quite. The good news is the $1000 purchase won't generate an overdraft itself if you get the missing $5 in before it clears the account. The bad news is if the five $1 debit card purchases get paid to the merchant before then they do the math like this:

So, you were already at $995 available;$1000 balance at the start of Tuesday. $1000 is made unavailable from your big purchase. US Bank does the bigger transactions that day first for 'your benefit'. You will quickly see this is not for your benefit. Now you are at -$5 available balance and still $1000 account balance. The five $1 purchases from Monday then process. The $5 that was made unavailable on Monday is added back to the account so that your account goes from -$5 to $0 available. The bank then pays the five $1 purchases only problem is while there is still $1000 in the account, by US Bank's math you have $0 available. You just generated not one but five overdraft charges to the tune of $187.50 all through the magic of US Bank accounting.

If US Bank was fair it would have paid the five $1 transactions with the money it made unavailable the day of the purchase. Also, why do they process the bigger transactions first? Because this scenario would not generate a single overdraft fee if it was done fairly and provided you got the $5 shortfall in before the $1000 actually transferred to the merchant.

So, as the friendly csr's at US Bank would say 'it's all in your agreement; we're not going to refund your fees; would you like to open a savings account'?

Keeping a ledger is of course a good, workable solution. But if you error, what US Bank does afterwards is truly mind boggling. Here is an example:

Account Balance $1000
You make 5 debit card purchases on Monday for $1 and the money is made unavailable in your account awaiting the merchant to send the transaction through ($995 available;$1000 balance). On Tuesday you make a debit card purchase of $1000. Now your thinking that you just overdrafted this by five dollars and you owe $37.50 in overdraft fees. Well, not quite. The good news is the $1000 purchase won't generate an overdraft itself if you get the missing $5 in before it clears the account. The bad news is if the five $1 debit card purchases get paid to the merchant before then they do the math like this:

So, you were already at $995 available;$1000 balance at the start of Tuesday. $1000 is made unavailable from your big purchase. US Bank does the bigger transactions that day first for "your benefit". You will quickly see this is not for your benefit. Now you are at -$5 available balance and still $1000 account balance. The five $1 purchases from Monday then process. The $5 that was made unavailable on Monday is added back to the account so that your account goes from -$5 to $0 available. The bank then pays the five $1 purchases only problem is while there is still $1000 in the account, by US Bank's math you have $0 available. You just generated not one but five overdraft charges to the tune of $187.50 all through the magic of US Bank accounting.

If US Bank was fair it would have paid the five $1 transactions with the money it made unavailable the day of the purchase. Also, why do they process the bigger transactions first? Because this scenario would not generate a single overdraft fee if it was done fairly and provided you got the $5 shortfall in before the $1000 actually transferred to the merchant.

So, as the friendly csr's at US Bank would say "it's all in your agreement; we're not going to refund your fees; would you like to open a savings account"?

I dont understand how you folks keep misunderstanding this information. I have provided accurate, tested solutions to help the gentleman avoid this issue. It works... It does not appear any of you defy me on that point.

I don't suggest we should not be responsible for overdrafts, I DO suggest that the fees are insane. in my opinion charging someone such a high rate, and not providing them information or services that help (aside from "overdraft protection" which still costs money) is greedy...obviously I am not alone in that belief. The punishment does not fit the crime. I can think of a million different ways to explain that point, but in retrospect I've been very clear, and frankly if you still don't understand I'm wasting my time.

I'm getting tired of this. It is my opinion that you keep stating the same thing over and over without making any good points contrary to what I say.

Folks, you CAN make them stop paying out charges to your debit account that will overdraft. When I try to buy something 50 cents more than what Ive got.. my card declines, and I don't get charged 40 bucks for that 50 cent miscalculation.

I got one a while back, before the angry bank visit I mentioned, for 88 cents. I did not know for a few days. Now my charge for that .88 cent overdraft is over 70 bucks, that is almost 8000 percent. I'm paying it, because I signed a contract and it WAS my fault i went over 88 cents. but 8000 percent?

What if it stated in my contract that if I overdrafted, someone was gonna come over and break my legs. I overdraft and some USBank goon comes over and cripples me.
A guy who thinks like me would say that I shouldn't have overdrafted, but getting crippled for it is insane.
A guy like Jimbo here would shrug his sholders, tell me how I need to grow up. And if I dont want to get beat up to behave myself..

In a situation like my hypothetical, and the actual, The first guy seems to be the intelligent one.

Misanthropy, you don't get it. Banks will charge you a fee for everything I've listed down, and more. One day, you will find out, get more outraged, feel really foolish for not listening, and all because you thought you were right. You aren't. Your logic is and has been flawed from the getgo. I understand you have a beef with the bank - as I've said, your beef has no merit when the same situation occurs throughout the banking industry, is legal, and consumers don't know it.

Take as much time as necessary to read everything in the account agreement, learn about the consequences associated with your debit card, keep a check register of all your transactions, and you'll be on the right track to fee avoidance. It works - even in the dreaded US Bank.

Misanthropy, you don't get it. Banks will charge you a fee for everything I've listed down, and more. One day, you will find out, get more outraged, feel really foolish for not listening, and all because you thought you were right. You aren't. Your logic is and has been flawed from the getgo. I understand you have a beef with the bank - as I've said, your beef has no merit when the same situation occurs throughout the banking industry, is legal, and consumers don't know it.

Take as much time as necessary to read everything in the account agreement, learn about the consequences associated with your debit card, keep a check register of all your transactions, and you'll be on the right track to fee avoidance. It works - even in the dreaded US Bank.

Misanthropy, you don't get it. Banks will charge you a fee for everything I've listed down, and more. One day, you will find out, get more outraged, feel really foolish for not listening, and all because you thought you were right. You aren't. Your logic is and has been flawed from the getgo. I understand you have a beef with the bank - as I've said, your beef has no merit when the same situation occurs throughout the banking industry, is legal, and consumers don't know it.

Take as much time as necessary to read everything in the account agreement, learn about the consequences associated with your debit card, keep a check register of all your transactions, and you'll be on the right track to fee avoidance. It works - even in the dreaded US Bank.

My solution works, I did it today and tested a transaction that made me go just BARELY over. The branch manager had to call tech support because he did not know how to arrange my account so that it DECLINES TRANSACTIONS THAT WILL OVERDRAFT MY ACCOUNT (I tested this arrangement successfully as well). He told me it wasn't possible, I assured him it was, guess who was right. I'm not surprised he did not know how to do it, I imagine its not something that the higher-ups would want him doing much. Which lends credibility to the argument that USBank is full of greedy people.


Incidentally, I was in line behind a guy who had two accounts, was making deposits into one and debits out of the other, resulting in a grand and a half of OD fees and neg bal fees. I WATCHED them refuse to help him at all.

The lady behind me in line was paying off 200 bucks her kid overdrafted his card for college. They would not help her either.


I got real loud in the store about the whole situation and needless to say the other two customers waived complementary overdraft protection as well.


Dear Jim:

"Even if you asked the bank to stop the transaction doesn't necessarily mean fee avoidance either. You would still incur a fee in such a situation because you as the account holder were foolish enough to use a debit card with no money in the checking account."

This information is incorrect, and I don't appreciate being called foolish. Don't make claims about things you don't understand.


"Further, many debit cards are also hooked up to a savings account as well, so if there's no money in the checking account, the overdraft goes into the savings account to get the money - for a fee."

He would know that if it was set up that way, and it doesn't happen unless you request it. Thats a very weak argument

Miss-
"...He expressly stated he wants his debit card to stop working when it will overdraft for a purchase, which I think is totally reasonable."

So by your logic it is UNREASONABLE for the OP(or anyone) to take PERSONAL RESPONSIBILITY for their own account and not try to spend more than is in it?

Part of the reason debit cards came into being is that the account holder agreed to pay for any and all transactions without incurring a transaction delay, including the affirmation of the transaciton. Even if you asked the bank to stop the transaction doesn't necessarily mean fee avoidance either. You would still incur a fee in such a situation because you as the account holder were foolish enough to use a debit card with no money in the checking account. Further, many debit cards are also hooked up to a savings account as well, so if there's no money in the checking account, the overdraft goes into the savings account to get the money - for a fee.

The moral of the story - have enough money in the account. It is really that simple.

What check, awfully?

He expressly stated he wants his debit card to stop working when it will overdraft for a purchase, which I think is totally reasonable. Are you suggesting this is impossible to do in this day in age? Aside from purchases that preauthorize for a lesser amount before authorizing for the full amount (examples include gas and gratuity)


Gwalker, you CAN go to your branch and request to have your card stop paying overdrafts, you have to fill out paperwork for it, Google "USBank Overdraft" and about the third result is all about it, complete with screenshots of the paperwork and the confirmation letter. Incidentally I asked for that very thing about 6 months ago and they told me it wasn't possible; I cant help but notice the date on that bank policy memo is from last year........

To forestall any half thought out comments on that piece of advice, there are ways that you can still get screwed, but as far as I can tell its only in the instance that a paper check is returned and you get return check fees that potentially add up to more than the 40 bucks you'd pay USBank

I'm going to tell you like everyone else on here has already heard form others. KEEP A REGISTER OF YOUR TRANSACTIONS!!! If you keep track and don't charge yourself into the negative, you won't have NSF fees. They ARE doing you a favor by paying your "bill" rather than declining it. If they didn't pay it, you'd have their fee on top of the fee the company you "wrote the bad check" to. That would probably triple your fees all together. Learn from your mistakes and keep better track of your finances. Hire an accountant if you have to.

You are spending more than what you have in your account.

You wrote:

"And you are not able to put a stop on this practice by telling them to not pay anything if there's no money in your account."

Why would you make purchases if there is no money in your account? It is your responsibility to know your balance and you agreed to those fees when you opened your account.

You are spending more than what you have in your account.

You wrote:

"And you are not able to put a stop on this practice by telling them to not pay anything if there's no money in your account."

Why would you make purchases if there is no money in your account? It is your responsibility to know your balance and you agreed to those fees when you opened your account.

You are spending more than what you have in your account.

You wrote:

"And you are not able to put a stop on this practice by telling them to not pay anything if there's no money in your account."

Why would you make purchases if there is no money in your account? It is your responsibility to know your balance and you agreed to those fees when you opened your account.

You are spending more than what you have in your account.

You wrote:

"And you are not able to put a stop on this practice by telling them to not pay anything if there's no money in your account."

Why would you make purchases if there is no money in your account? It is your responsibility to know your balance and you agreed to those fees when you opened your account.