Is there a way to tell my bank to NOT charge me overdrafts and to just decline a purchase when the funds aren't there?

I hate auto-debit for bill paying because it makes my checking account difficult to balance - it can be a real pain when the monthly charges are variable (cell phone, cable (if you order PPV or some such, insurance when a new policy auto-renews, etc).

However for my credit cards I have auto-debits set up for the monthly minimum + a few bucks (I use $50). I go into my account and pay the full amount online, but this way I can't get socked with a late-payment fee because at least the minimum is always covered.

(End 2 cents communication).

@Eldritch:

I believe some banks allow you to opt out, but most don't

@ScottRose: I hate auto-debit for the same reason - so instead I set up recurring reminders on my work calendar/blackberry to remind me 48 and 24 hours before the due date for every one of my bills. That way I can't forget but I don't have to deal with the auto-debit mess.

I use separate accounts for ATM and paper checks. This way I don't have to worry about my account register being current.

@hypochondriac: When I asked mine, they had me sit down with an "account manager," who said that by default I'm not charged on debit transactions, only credit transactions. I don't know, but I use the card as a debit more now, since apparently it will check the balance and decline if there are no funds, as opposed to running it as a credit, which takes 3 days to clear and therefore can't check your balance on the fly.

To anyone having trouble balancing their checkbook or keeping on a budget: Buy a money management program (such as Quicken). It'll be the best ~$50 you've ever spent.

Be diligent about updating your transactions. Be strict in following a reasonable budget. These things can be done without spending money on the software, but programs like Quicken make it easy. (And dare I say, fun?)

Most any brand of money management software will do, just give it a shot. I probably wouldn't have become as financially responsible as I am without trying it.

@Eldritch: Yeah -- open an Electric Orange account w/ ING. They set you up with an overdraft line of credit linked to your checking account. I'm not sure what the initial limit is, but my current LOC limit is $3,500. I'll never be charged an overdraft fee with that limit. All you pay is interest (I think its currently 7.25%) on the amount overdrawn until you replenish your account.

@ScottRose: I guess I'm missing how auto-debits make it hard to balance an account. How is it different than manually entering the charges?

I prefer to avoid direct debits from my checking account on principle and have them go on my credit card instead when possible, but a couple of places still won't charge a credit card.

@Eldritch: I asked my credit union this last week - they said they can't deny the charge regardless whether I have enough funds in my account or not, but for an extra $5.99/month they'd give me "overdraft protection" so that if one of those charges went through I wouldn't have to pay the $29 overdraft fee. Looks like no matter what we do we're gonna get charged.

My gas company charges a "manual billing" fee for paper billing and a "convenience fee" for online billing...

@Mike8813: I made myself a little spreadsheet in Open Office. I have the next few months of transactions plotted out (with expenses I know and an estimate of what I will spend), and I update it with every transaction. The hardest part was getting myself into the habit of actually updating it, but I've been doing it for about five or six years now, and it works wonderfully. On another sheet, I list every gasoline purchase for the past few years, so I can track gasoline spending and fuel efficiency. It's kind of fun, but, then again, I'm a data geek.

@StellaBella07: In the past I did the calendar reminders also, but now I just go through all of my accounts every 2 weeks (on payday), and pay any accounts with a due date that's less than 2 weeks away, or more if I have the extra money. I have an Excel sheet that I re-use; I put my current checking account balance in, and then keep paying bills and watch it decline to a comfortable level. (I have a line-item for savings account transfers in there as well).

I haven't missed a payment or come close to over-drawing my checking account since I started with that method, and I don't need to keep my register balanced.

@Yossarian: Having 10 variable-amount-and-time debits to my checking account every month would make it difficult for me to keep a running balance. (I added the "-and-time" part because some of my bills are on a monthly cycle, others on a 28-day cycle, and others seem a little less predictable).

@captadam: I do basically the same thing in Quicken going out two years. It makes it easier to see how much I can move into a high interest (lol) account while still leaving enough to cover budgeted expenses.

@Xerloq:

Maybe ticketmaster runs your gas company.

@Xerloq: Now that is just terrible.

I am absolutely sick of any billing fees to begin with. It's completely asinine -- though I understand that there is a cost associated with billing people (paper or electronic) and then processing the payments -- how else do they expect to get their money? It's a cost of doing business for companies, and it should just be built into their normal revenue streams.

But no, they charge a separate fee for the billing, and then raise our rates anyway (not just talking about utilities here).

@Eldritch: use a credit card....

@captadam: I think the fact that you've even heard of OpenOffice might already be evidence of your geekdom. (Did I spell that right?)

@Xerloq: So, what other options exist? Either they spend the postage and paper to send you a paper bill or they email a notification about the bill being ready for review. And they charge you for that email notification message? Yikes!

Can you select "please phone me at 2am to tell me the amount"? That way you just mail them a paper check (minus your fee for a 'convenience check').

And how about letting us know the name of that enlightened company?

@Yossarian: Yeah, "high interest" is pretty laughable these days. I think my HSBC savings is down to about 1.5% these days. The more money I put in, the lower the rate goes.

Oh well, it still beats the ~0.25% I'd get walking into a local bank.

@Mike8813: I'll second this advice - Microsoft Money totally changed my relationship to money a really good way.

@unpolloloco: See #19 - This happened to me with my Capital One card, and I got hit with a $35 overlimit fee.

@StellaBella07: "so instead I set up recurring reminders on my work calendar/blackberry to remind me 48 and 24 hours before the due date for every one of my bills."

I do that too. The ones that are due at the end of the month (beginning of next month) I never have a problem, but I have three that come at other points in the month and it messes with me.

I've found Mint.com to be very useful because it categorizes your expenses automatically. It's a little scary giving them your bank information, but the passwords are theoretically stored on a separate server, and all it does is monitor the accounts and allow you to track spending. And if you have the iPhone app, you can glance at your accounts regularly and be notified of unusual expenses within about a day.

@HarcourtArmstrong: Couple that with NEVER using a Debit card (security issues notwithstanding), and you'll be in pretty good shape.

@ScottRose: "It's a cost of doing business for companies, and it should just be built into their normal revenue streams."

Exactly. Can you imagine if every time you went to a retail store they charged you a couple of dollars for ringing up your purchase and counting out the cash?

@Mike8813:

mint.com does more than quicken and ms money and does it for free. I'd highly recommend it -- I've been using it for almost 2 years. It catalogs everything. Credit, Checking, Savings, CDs, investment accounts, IRAs, 401ks, Asset management, everything.

@Eldritch:

I can't see any rational reason to ever pay for anything with either a check or debit card. I pay for everything with a credit card, in my case one that gives me cash back, and then I pay off the credit card every month, so no interest fees. That way I also have the credit card company backing me up on every purchase I make, so when a retailer/PayPal/whatever tries to dick with me, eventually I can just ask for a chargeback and that's the end of it. It is vastly too easy to get screwed over when you use cash/debit. Not worth it in any sense.

@Mike8813: I like Moneydance for my personal finances. The transaction entry is setup just like a paper check (Payee, memo, etc.) so it is easy to use.

[www.moneydance.com]

@divrekku: Yep. That's why I don't get this whole fear of overdrawing your account. There is a metric shitload of resources out there for people.

Put your receipts into your wallet every day, and, when you get home at night, put them into Money/Quicken/Mint/Excel/Calc/checkbook-register/whatever.

There is no bad system as long as there is a true system that is better than "Well, I check my balance every day."

Not good enough. When are people going to get it?

It's not the bank's job to keep track of your balance. It's their job to keep an accurate balance only as much as they can track your valid payables, which you are obligated to do on your own.

@James Sumners: I use a Mac, and have to jump through hoops to run Quicken 2007 on it. I've been looking at getting Moneydance when my online support "sunsets" next year. I liked the demo.

@Xerloq: Our local Water District is charging a 'convenience fee' for paying online now. God help them if they start adding to the fees, this is a very small town and those folks could be tarred and feathered easy. Hell, I'd buy the tar ... my monthly water use only runs ~20.00 a month BUT the sewer/maintenance/meter fees are nearly $100 a month. Just got my new bill and its $124!

Second thought, I'll buy the feathers too.

Duh. This is no news to at least 90% of people who read The Consumerist. The people who should be reading this article are not the audience on this web site...

Will call fee: to pay your bill in person.
Convenience fee: to pay your bill online.
Manual processing fee: to pay your fee by check.
Credit card fee: to pay using credit card.
Late fee: when you pay late.
Statement fee: to receive your bill via mail.
Termination fee: fee to close your account.
Early termination fee: fee to close your account.
Over the limit fee:
Under the limit fee:
In activity fee:

Of course, these fees may be combined.

@TWinter:

I have that on my desktop but I never update it. What I need is to put it on my laptop (which is now my primary computer) and make GREAT BIG reminders!

I do #1 (go paperless on some bills), but #18 (autopay on credit cards to avoid late fees)kinda makes me go Hmmm....aren't we trying to avoid autopays as much as possible so companies can't suck money out of your account?

The only autopay I have is Netflix. So far, so good.

Take a look at credit unions for high-interest checking accounts. Our credit union in Seattle has an account that pays 3.5% on balances up to $25,000 as long as you make something like 12 debit card POS transactions every month, use electronic banking and receive electronic statements. I've heard of other credit unions doing similar things.

The credit union is Verity, formerly Northwest Federal Credit Union.

Forgot to say that we keep some of our savings there to earn interest and to use as a buffer to make sure we never overdraft.

@Xerloq: It is coincidental that we are talking about these "convenience fees" at this time. I just put in, for what it is worth, a formal complaint to the local governing body and to Visa against Comcast. The reason for my complaint is that If you want to pay your bill using your telephone by calling Comcast, they will charge you a "convenience fee". From my understanding after speaking with Visa that is not allowed. If you however want to use your credit card on Comcast's web site there is no "convenience fee". If you allow Comcast to automatically charge your card each month there is no "convenience fee".

Since I use the internet to pay each month I do not get hit with that bogus charge but the people who do not have internet access and do not trust Comcast to automatically charge their card are stuck paying.

I'm not sure how things will go (hell, Comcast might even try charging that "convenience fee" for internet payments after reading my complaint) but if they do they will have one less customer. In addition I might seek out a law firm who specializes in class-action lawsuits.

@Eldritch:
I think most of them allow you to opt-out, but you have to specifically ask for it.

@HarcourtArmstrong:
That's a really smart idea.

@ScottRose: i hate auto-debit b/c at&t once stole ~$600 from me & then made me fight my way back from the 9th circle of hell to get it back.

my favorite part was when the representative said they made a little oopsy. lady, my bill is <$50. if a $550 error is a "little oopsy", i'd hate to see what you folks call a big oopsy.

bill payer is free or super-cheap at most institutions these days...i started using that. i can set email reminders when i get near due dates, establish auto-payments from my end so the death star doesn't vaporize my checking account at their whim & even review more than a year's worth of payments (which makes budgeting a breeze). that's what i'd recommend.

@Leksi Wit: So it's of use to 10% of the people who read Consumerist. Go away.

Anyone and everyone can make a mistake and you should *not* have to check your account every couple of days. Get a checking account with an OVERDRAFT account linked directly to it. Make sure they don't sell you on a credit card linked to the checking account -- that's just another profit center. This should be an account you see when you log in to your checking account and which is *only* for overdrafts. Mine has a $500 limit and it makes managing cashflow so much easier. If a bill is due on the 13th, but the paycheck doesn't come in until the 15th, no problem. It can go into overdraft for a few days. Then I transfer the money from checking to overdraft when it's available. Don't kick yourself and don't let the bank kick you! Bank smart and stop feeling guilty because you're not *perfect* at balancing the checkbook!

Gift card fees are the most outrageous. Someone gives a company money for me to use. Instead of using it immediately (or within "reasonable" time), I let the company KEEP the money and collect interest on it. Meanwhile, they charge a monthly fee against the card because they're also collecting interest on the money. WHAT A SCAM!!! Can't someone do something about this robery???

@vastrightwing: Don't forget my personal favourite: maintenance fees. "We're going to charge you just for doing business with us! You're welcome."

Even though I have no overdraft fee on my bank (or fees in general!) my wake up routine is this. Wake up, open laptop, check weather, check my bank balance, go about daily business.

@Eldritch: Typically you can ask your financial institution to set your overdraft matrix to zero. They will act dumb and as if they have no idea what you are talking about or if they can do it, but most can do it in my experience.

However, most people don't keep this in mind - OD fees are typically created when transactions POST, not when the charge is authorized. So, you may have the balance available when you swipe the card, but it may not be there when the charge posts. A few banks are now charging fees if the balance is not there upon authorization, but by and large it is still when the charge posts.

As someone who has worked in the financial services industry for 12 years, I can tell you the best way to avoid NSF and OD fees is to keep a transaction register, reconcile your account regularly, and spend according to your balance, not what the ATM or automated service tells you. Relying on a zero OD matrix is not the answer.

Those fees are so terrifying that every 2 weeks I zero out every charge card. I buy everything with credit cards and the strangest thing happened to me a few months ago. I paid off the balance 2 days before the statement date and was charged a late fee. When contacted the rep stated she had never seen this before and cancelled out the late fee. Im also set up on autopay for all my credit cards and most of the time at least one of my 8 charge cards collect the statement balance and I have the opposite of a balance owed. I have also been using MS Money for the past 9 years and just lately switched to Quicken. I update my accounts at least 2x's a day. One card was comprimised in 2000 but the company emailed about the server breach and all I had been hit for was for 10.88 from global telecommunications of Moscow Russia. Bank was immediately informed and the case was transfered to the FBI. my buddy got the same warning but to this day does not use any financial software and he had to fight several charges totaling over $600 because he waited for the statement to arrive before he knew. In the past few months I recieved $350 checks from Chase and $100 from Discover. My only loan payment is my mortgage payment. Nothing owed on any car loans. I did get a notice from the GM card that my limit was reduced from 11500 to 300. My credit score went up since I had over $117,000 available in credit cards.