...opt-out of "courtesy overdraft fees" so that if you use your debit card and don't have enough money for what you're swiping it off, they will actually decline your card. However, you have to remember to never swipe as credit, only as debit.

Reader Jon thinks he's got it figured out. Opt out of courtesy overdraft screwing, and then ask for a debit-only card. "Voila," he writes, "you have a checking account and debit card immune to shady courtesy overdraft fees." However, since Chase now owns WaMu, I'm betting you have to already have a WaMu account for this to work.

(Photo: thekateblack)

I tried to purchase a digital download of Diablo II from blizzard.com's online store two weeks ago. Everything seemed to be going fine until I attempted to download the file and it failed. I checked with my online account and it showed that the order 'failed' in one section of my account, but was 'queued' in another part of my account. So, I called customer service and spoke with a guy named Joshua. Joshua said he didn't see anything wrong on his end, but that since I saw 'failed' on my end, the charge wouldn't go through, so I wouldn't be able to get the download. To solve this, Joshua placed a second online order for the digital download - directly over the phone.

He told me to wait a couple hours and the second order should go through. Because of how unusual Blizzard's site is, I had to create a second account in order to use a second 'key' to download the product again. A couple hours passed and both orders showed 'failed' on my side of the account: the original order I placed that Joshua stated I wouldn't get charged for, and the second order Joshua placed. At this point I called customer support again and emailed Joshua (who gave me his email). I spoke to Sam who told me that both orders had failed and that I wouldn't be charged for them. Joshua recommended that I go to the store and buy a hard copy of the game - which I did. Last week I checked my checking account and guess what? I was charged for both online orders!

I emailed Joshua asking for him to refund my two charges since I was never able to download the products and because I had purchased a hard copy and didn't need them. (The online store now showed that both orders were 'successful'.) After much confusion Joshua has told me that it is impossible for them to refund me because the 'keys' for each of the digital downloads had already been claimed.

The emails Zach forwarded us show that Blizzard is willing to refund the money — but claim that their system will not allow it and that he should wait for that "functionality to become available." That's unfortunate for them, but there's no reason Zach should wait around for the company to debug its software.

Zach, call your bank and let them know that you've been mistakenly charged and that the vendor says they aren't able to refund your money. Tell them that you'd be happy to provide them with the emails from Blizzard. There should be no problem getting a straightforward error such as this fixed. Your bank is there to protect you from this sort of nonsense.

Give them a call!

March 25, 2004; March 26, 2004; June 23, 2004; July 2, 2004; July 3, 2004; August 4, 2007; August 5, 2007; August 13, 2007; and August 14, 2007. You could also be at risk if you shopped at their Fresno Cali store between November 26, 2003 and October 24, 2005. If the above describes you, review your credit card statements for unexpected charges and monitor your credit report for strange activity. Affected customers may receive a notice from their credit card company.

Forever 21 also announced the problem to its customers via a small link on its site labeled "Important Customer Info Notice" that no one will ever click on.

Press Release

1) It can unconsciously rationalize spending. Some part of your brain is going, "It's ok, I'm saving."

2) Personally, I only use my debit card to withdraw money from the ATM. I don't want my account number getting stolen off some insecure store PIN pad, and paying only in cash encourages wiser spending.

3) If you're going to do this program, at least once a month move the money from the savings to an online savings account. Interest rates at brick and mortar banks are like .0crap, online you can get upwards of 3% right now.

One neat thing is that for the first 3 months, they will match everything you save 100%. After that, 5% of your purchases up to $250.

The deal has been around for a while, we wrote about it in 2005, but a new smarmy ad campaign (the one that goes, "This is America. Do we let the sun just shine or the wind just blow? No, we put them to work.") and recent events, made me think we could revisit it. What do you think? Is this a handy program, or the Diet Coke of savings plans? Leave your thoughts in the comments.

Keep The Change [Bank of America] (Photo: atbartlett)

• When you check into a hotel or rent a car - or if a restaurant or other business asks for your card in advance of service - ask if the company is "blocking," how much will be blocked, how the amount is determined, and how long the block remains in place.
• Consider paying hotel, motel, rental car, or other "blocked" bills with the same credit or debit card you used at the beginning of the transaction. Ask the clerk when the prior block will be removed.
• If you pay with a different card, by cash, or by check, remind the clerk you're using a different form of payment and ask them to remove the prior block promptly.
• If your debit card issuer allows blocks, make sure you have overdraft protection.

Credit and debit card blocking can sour weekend travels - so be careful! [All Consuming]

In March of 2008, I used a debit card on an online poker site, which happened to be a foreign vendor. I know it wasn’t wise, but I did. I had no issues at all with site, until I made a withdrawal in mid-April. A few days after that withdrawal I spotted several large charges pending on my WAMU debit card account that I did NOT authorize. The poker site used a foreign third party card authorizer and apparently they decided to have some fun with my card. I contacted the poker site and informed them of the problem, and they refused to do anything for me. The third party does not even have a contact phone number. I then called WAMU before the charges could even post, and was told that I would have to wait until they posted before the dispute could be done. After all was said and done, 15 unauthorized charges totaling $3,400 hit my account. I canceled that debit card, filed the dispute and was given a provisional credit within 5 days.

The following week, I received a letter from WAMU stating that I needed to contact them about what documentation they needed in order to pursue the dispute. That’s all it said. I called on April 29th and spoke to a CSR about what I needed to send the fraud claims department. She told me that all I needed to send was a written and signed affidavit detailing what had happened and what I had done to remedy the situation. I did exactly that and faxed it to them that same day.

I hadn’t heard anything for about a month and called the claims department. After waiting on hold for over half an hour, I was told that they had no new information.

Two more months go by. I received a letter from WAMU stating that I had not provided them with enough documentation to pursue the claim, and they reversed the provisional credit. I called them immediately and after being on hold for 45 minutes this time I spoke to another CSR, and then a manager. I was informed that they sent out a letter on April 30th, the day after I faxed my affidavit, which said I still needed more documentation. That second letter magically never arrived. They told me that it was too late and they would deny me the ability to fight these charges with the vendor. I explained to them over and over again about how I did exactly what was asked of me, and did NOT receive the second letter. Finally to get me off the phone, the manager suggested I submit a re-assertion letter to get the claim reopened, along with any documentation I could provide. There wasn’t a lot of documentation to provide, since it’s kind of hard to prove you didn’t authorize a charge online. I provided them with copies of emails to the poker site and the third party vendor demanding they credit the unauthorized charges.

Three weeks later, I am told that again they will not pursue the claim. The CSR is extremely rude to me and almost seems to gloat about me being screwed. She said, “You didn’t send in enough documentation within the prescribed deadline. Now you’ve sent in the documentation, but it’s still past the deadline.” Too bad…so sorry. I was told that I should have read the important information on the back of their notices (one of which I didn’t receive) informing me of the deadline.

Now I’m not stupid. I realize that WAMU is pre-judging me based on the fact that I dealt with an online poker site. But I believe they are breaking my rights by not even pursuing this dispute. All I’m asking is that they continue on to MasterCard and file the dispute with the vendor. I’m not asking for any provisional credit. If they would actually let this claim continue, the burden would be on the vendor to provide documentation. The vendor can not have any documentation, since I did NOT authorize the charges. I’m only asking that they follow the law. They have gotten around this by failing to send me a second notice, and never actually providing me a list of sufficient documentation on the first notice. Because of that, I missed the deadline.

I filed a claim with the Better Business Bureau. A CSR from WAMU called and left a message on my cell phone in a very haughty tone, saying that they were aware of the complaint I had made, and that they were so sorry, but I missed the deadline. They suggested I sue the vendor.

They know I can’t file a lawsuit against the vendors, since they are not in the U.S.

I plan on contacting the Office of Thrift Services, but do they actually have any clout in this matter?

Sincerely,

Rob K

OTS is WaMu's bank regulator, so yes, they do have clout. You can also try contacting their executive customer service team. Then, after you get your money back, switch banks.

Then, next time you want to play poker, consider a friendly game with your buddies. As your letter states, online gambling doesn't attract the most savory of business people. If you do have to scratch the itch, at least use a credit card, not a debit card. That way, if the account gets hijacked, it's the bank out the cash and not you.

We asked WaMu whether this was standard policy or if their letter-sending facility is having an error, and await their response.

(Photo: Getty)

UPDATE: 9/02/08: In response to our email inquiry, WaMu has said they're interested in checking out this story.

I wanted to tell you guys about my positively sexy Washington Mutual experience. On 6/01/08, someone hacked into my iTunes account, and using my debit card information, purchased two $200 gift cards, something I noticed when checking my online statement. I call WaMu immediately, tell them about the fraud, and they say they will issue me provisional credits, which they do. I then ask the fateful questions that started this mess:

"Is there anything I need to do or give you? Should I call iTunes? Do I need to investigate?"

The answer was a swift, resounding, no. You don't need to do anything. We will contact Apple and we will investigate.

I've had good luck with WaMu, so I honestly had no reason to think that this was not even close to the correct answer. I've never been defrauded before, so I assumed that I had done my part, and that if something came up, they have my phone number and the WaMu message center, so they could let me know immediately. This was incredibly stupid.

Fast forward two months and change, I'm taking a trip from LA to Chicago for my very first production of a play I'd written. I check my balance before I leave. I take the red eye, I buy food, gum, etc. I land in Chicago at about 6 AM, and crash. The next day I try to use my card. It's declined. I have a dress rehearsal in three hours.

I check my balance and the two credits are gone, the withdrawal dated for sometime between when my connecting flight left Las Vegas and when I woke up. I am now severely overdrawn. What's worse, the four things I purchased while in LA and in transit conveniently all clear in the day after the provisional credits are revoked, each invoking their own overdraft. No warning. No notice. No calls.

I go the bank, the teller tells me that the bank has deduced that I lied about the fraud, and there's nothing I can do. I throw a fit, he gives me a number to call. I call the number. The CSR tells me that what happened was that affidavits were sent to my graduate housing address on, literally, the day I moved out after getting my master's and because they were sent back returned, there's nothing he can do.

This is the first I'm hearing about affidavits, period. This is the first I'm hearing about affidavits being sent to an address I wasn't at, and the first I'm hearing about them being sent back. I pitch a fit. He tells me that I could try sending proof of my residency claim and info to a fax number, and address it to an Alex Wilson.

I fax my proof of residency, and call CS back to follow up, asking if I could get Alex Wilson's extension. I am told that Alex Wilson is not a real person. He is just a name for people to fax things to.

What?

Also, there is no way for me to follow up with him, or the office where the documents were sent. I have to be patient and wait for a letter in the mail. I honestly have no idea if any of this is true.

I should mention at this point that due to be being stranded and broke, I have missed the final rehearsal, and half of the shows. I call CS back again. I explain the situation, I ask if there is anything she can do. She notes that the investigation is opened back up, but that now I need to contact iTunes and fax WaMu proof that what I say happened, did.

What about the affidavits? What about the part where I didn't need to contact anyone? The CSR reinforced that she didn't know what I was told in the past, but this was what I needed to do now. And I can't have my provisional credit back, or the four overdrafts.

At this point, I have missed my show entirely. I call Executive Customer Service the day my flight is leaving, and leave a message. No response. I beg for a ride to the airport, and on my layover, write an e-mail to ECSR, explaining what happened. I get an e-mail the next day that is kind and apologetic, and says that this should be resolved in 24-48 hours. I celebrate pre-maturely.

I check in with her at 24 hours, she is still working on it. I check in at 48, no response. And then, at about 76 hours, I get an e-mail that diplomatically informs me that I am lying about how I was informed and guided after the fraud, and that it was my fault for moving (and I guess, by proxy, getting my masters) at the wrong time, and my fault for not having a future address at that time, despite my not having any idea what that address would be used for beyond account identity verification. It was phrased: "According to our policies, what you have suggested could never f*cking happen and you are full of sh*t."

And that, despite the fact that I faxed the required info when I returned to LA, that I have repeatedly referred to this as fraud, and not a dispute, that I have a f*cking phone and access to a message center that they use to inform me of other important things, I got the dreaded "we have insufficient information to dispute the charge with the merchant."

Not having the presence of mind to disbelieve what the debit fraud CSR says costs about 536 dollars, priceless memories, and a week and a half. Took a screenshot of my message center inbox, just in case. What other evidence do I need to start assembling so that I can nail these bastards?

-Kristin

The Electronic Funds Transfer Act, which governs debit card transactions, is pretty clear on this issue. If you report the theft of your card or your code within two business days, your liability is limited to $50. We're pretty sure that someone stealing your debit card information from your iTunes account and ordering gift cards with it counts as fraud and not an "error." Here's some more information about the law from the Federal Reserve.

With this in mind, why not file an official complaint with their regulator? It'll be valuable later on if you have to keep fighting with them. Here's how you do that:

1. Contact WaMu with a formal complaint. You can do this in writing, or by email. Keep a copy of this complaint for your records.
2. Figure out which agency regulates your bank by calling or using FDIC's Bank Find. We happen to know that Washington Mutual's primary regulator is the Office of Thrift Supervision.
3. Write a formal complaint letter to the bank's regulatory agency. Follow the FTC's instructions for writing a complaint.

   This document also has the correct contact information for the various regulatory agencies. Keep a copy of this complaint for your records.
   

   By filing a complaint, the regulating agency will investigate whether WaMu actually violated any banking regulations.

For more information about launching an EECB, click here.

(Photo: Stirwise )

UPDATE: 9/02/08: In response to our email inquiry, WaMu has said they're interested in checking out this story.

Eric says:

I recently stayed in a suite at the "Crowne Plaza Hotel In Kansas City" for a wedding. I made my reservations long in advance and everything seemed fine. I arrived and checked in, gave my card for any liabilities I incurred while staying there. Got to my room and was very happy with the cleanliness and space the suite offered. I almost immediately left after dropping my bags, running around town with the groom to be.

I have my checking account setup to send SMS messages to my phone for any purchases over 50 dollars. My wife likes to spend a lot of "little money", but I digress. I get an SMS message saying I had a pending charge of 547 dollars. Well through the package the new couple had setup with the hotel the suites were 89 dollars a night with taxes and such my bill was supposed to be 311.87 (per the reservation line l called to confirm the price). When I finally got back to the hotel I asked for the manager and inquired about the additional 235.13 pulled from my checking account. She stated it was for incidentals and that it would be placed back in my account after my stay. I've stayed at some pretty high-end hotels and never have heard of such a thing. Usually the hotel keeps your account on file and then charges you at the end of your stay your room and any room service, additions etc.

I didn't make a huge deal out of it because it wasn't really about the money, I had plenty of money in the account to account for, well honestly a 235 dollar purchase I didnt plan on. Because when it comes down to it, that was money that was not available in my account. If for some reason I came with only 311.87 in my account, the hotel would have overdrawn me.

I've heard of gas stations doing this to the tune of a few bucks, but 235 dollars? I was never told this would occur, even though the front desk is supposed to tell you about this before check in.

Really what it comes down to, is how much power do these companies have over our own money. Money we don't even designate them to take or "hold" in the first place. Ironically 30 mins after I left the desk, I get another SMS saying 160 dollars had been deposited into my account. Still not the whole amount just really odd. Something to think over.

Eric, you're not alone in being upset about this. We found a thread over at FlyerTalk where people are debating whether or not these types of holds should be standardized or disclosed to the customer. The problem, as the Marriott Concierge explains, lies in the fact that each hotel (even within a chain of hotels) calculates the incidental hold amount differently:

The hold is determined by sum of three factors, the length of stay, room rate and tax, and something called the incidental factor. The first two are simple math, you take your room rate and tax and multiple it by the number of nights you will be staying. However the incidental factor is less constant. This amount is based on the typical spending habits of the property’s guests. This means you can expect to have a much larger hold at a resort location than you would typically have at an Airport location because guest tended to spend a lot more on incidentals. Likewise guests typically spend more at certain international locations than at many domestic locations.

Once the incidental factor is created, like Socrates said, there is no human determination of what the hold amount will be. The hold is determined and processed by the hotels system based on the factors mentioned above.

As far as we can tell, the best thing to do is to ask how much the hold will be when you check in. Then, if you can, give the hotel a credit card, rather than a debit card, to use for incidentals. That way you're less likely to run into overdraft fees and other debit card related nuisances.

Of course, if the hotel doesn't end up returning the correct amount to your checking account within a reasonable period of time, you should contact your bank and dispute the charge.

Is there a consistent incidental hold policy? [FlyerTalk]
(Photo: Chrispitality )

There's a lot of information below, so here is an executive summary:

• Regardless of who the merchant uses to process credit card transactions, merchants that add a surcharge or require a minimum purchase to accept a Visa or MasterCard credit or debit card are violating their merchant agreement, and you should report them to the bank that issued your card.
• American Express does not forbid minimum purchase requirements, but they require parity with the other credit cards, so a minimum purchase requirement just for American Express, but not for Visa, is not allowed. American Express does not allow surcharges, unless they are assessed as a convenience fee...
• Convenience fees are allowable surcharges for specific types of payments, generally to schools and government entities (like taxes or fines).
• Asking for ID is not prohibited, but refusal to show ID cannot, by itself, be a reason for the merchant to halt the transaction.

Does this only apply to credit cards? What about when I use my [Visa, MasterCard, American Express]-branded debit card?

We've mentioned this before, but it's worth repeating: the merchant agreement applies to a consumer who uses a debit card with a major credit card company's logo on it, regardless of whether he signs it or uses a PIN. Note that this is for things like minimum purchases, surcharges, and requests for ID; a credit card often offers additional consumer protections for chargebacks, warranty extensions, and buyers assurance plans.

What's the deal with third-party processors?

After we posted about a McDonald's adding 25¢ to credit/debit card purchases, commenter Corporate Shill wrote in to tell us that many small businesses, like bars, use a third-party credit card processor to offset the expenses of purchasing credit card terminals and accepting different cards:

3rd Party CC Processing Companies offer Merchant Bank services to small businesses that cannot afford to offer CC services to their customers, or to businesses that have been denied CC processing by Merchant Bank.

(In simple legal terms the 3rd Party Companies will act as a straw man between the Merchant Bank and the business that actually accepts the CC from the customer.)

In addition to offering Merchant Bank services the 3rd Party CC Processing Company will often provide the data terminals and supporting equipment at a very low cost or even free to their clients. The data terminals, because they are accessing the 3rd Party network rather than an actual Merchant Bank network, can be programmed to accept an even wider variety of CC's and perform other functions, such as check clearing.

We asked the credit card companies whether a merchant that contracts with a third-party processor still has to adhere to the merchant agreement: MasterCard simply said "Yes," and American Express said that these merchants still sign a contract with the credit card company regardless of how they sign up for card acceptance. Corporate Shill disputes this, saying that using a third-party processor does not require the merchant to sign an agreement with the credit card companies, but the companies, at least American Express, disagree.

Are government and educational entities exempt from these rules? What is the exception for convenience fees?

MasterCard says:

We allow a "convenience" to be charged by certain educational institutions and public sector merchants, including:

• Elementary and secondary schools for tuition and related fees, and school-maintained room and board
• Colleges, universities, professional schools, and junior colleges for tuition and related fees, and school-maintained room and board
• Local, state, and federal courts of law that administer and process court fees, alimony, and child support payments
• Government entities that administer and process local, state, and federal fines
• Local, state, and federal entities that engage in financial administration and taxation
• Government Services; merchants that provide general support services for the government

In addition, a merchant is permitted to charge a fee (such as a bona fide commission, postage, expedited service or convenience fees, and the like) if the fee is imposed on all like transactions regardless of the form of payment used. For example, a merchant that has a website that accepts MasterCard, Visa and direct debit to a checking account as its three forms of payment, may ask for a surcharge IF the fee is applied to all three methods of payment. The same applies to a merchant that has a physical store that accepts cash, checks, MasterCard and Visa. The store can charge a fee as long as the fee is applied to all four methods of payment.

American Express says such fees are only allowed "in very limited industries, for example, taxes."

Can a merchant ask for ID with I pay with a credit card? Can I refuse to show it?

We've addressed this before, too, and it also bears repeating, along with a little elaboration from MasterCard: "However, to be clear, the MasterCard rule does allow merchants to ask for ID. Our rule prohibits the merchant from refusing to perform the transaction solely on the basis of the cardholder refusing to provide the ID. (If the merchant asks for ID and the cardholder refuses, then the merchant can either perform the transaction or call their acquirer for direction.)"

That being said, this isn't going to help you when you're out of cash and the guy at the convenience store won't let you charge that can of Drank. But reporting these violations, to the credit card company, to your issuing bank, and to us (preferably with pictures), will draw enough attention to the merchant that it will, hopefully, change its way.

Lauren writes:

Today while checking my bank account statement online, I noticed several (5) suspicious charges on my account. They were all for UNO's Chicago Grill (the Braintree, Massachusetts location) and they were all dated July 11, 2008. I haven't been there in months, so I was confused, to say the least. Not to mention, on July 11, I was on Martha's Vineyard. I was there for most of the week preceding these transactions. My card has never left my possession....

I called my bank immediately. As usual, they were very helpful and froze my card. They told me the steps I would need to take to go about recovering my money. I don't carry cash, so having my debit card frozen is a bit of a pain. My car is low on gas and since we just arrived home from vacation yesterday, there is nothing to eat in the house. Since I'm a single mom with three kids, getting to the bank before it closed was a priority for me.

After hanging up with the bank, I called the UNO's in question because I wanted to know how this could happen. If I've always had possession of the card, it would be illegal for them to punch in the number with no card. When someone answered the phone, I asked to speak to a manager. "Is this about charges to your credit card," the wait-staff who answered the phone asked me. I replied that it was. "Okay," said the voice on the phone, "Do you want to know what happened?"

Of course I do.

This individual explained to me that there'd been a "really big computer problem" and that cards were charged. I said I hadn't been in their establishment in months. "Yeah," he said, "Yeah it sucks."

I'm out almost $200 and I am told "yeah it sucks" ? And I was assured that they'd probably "do something". I hung up, mostly because I had to get back to the training I was in and didn't have time to sit on the phone getting no answers.

On my way home, I called again and asked to speak to a manager. Moments later a manager named Spencer took the call. He explained to me that there was a computer "glitch" at the bank that processes their credit cards which had gone back as far as November 2007 and made new charges to credit cards. I asked how could this happen? And why were they holding on to my credit card information months after I'd been there? Spencer had no information regarding this. Nor did he care that I couldn't put gas in my car or buy food for my kids that night. He did tell me that he knew this was "really inconvenient".

I think I'm more inclined to say "really illegal" and it's far beyond inconvenient.

I went to my bank and they helped me through the paperwork. I wrote a statement saying that I did not actually make these transactions and that I was, in fact, on Martha's Vineyard when it occurred. While I waited at the bank, I texted several friends about the situation, since we'd often go out to UNO's after work for drinks and a bite to eat. Of those I texted, I've heard back from five. They've all suffered a similar fate. And none of them knew it had happened since they don't obsessively view their transaction logs online.

I intend to make a lot of noise about this issue. While it's not the end of the world and I will most likely see my money back eventually, being out that much when you're a single mom with three kids is no small issue. Add to that that I've lost the use of my debit card for the next two weeks until the new one arrives and I've got quite a bit of inconvenience coming my way.

That is a big pain in the butt and UNO's blase response doesn't help matters either. This story shows one of the drawbacks of using your debit card: it's your actual money. If unauthorized charges go on your credit card, then only the credit card company is out and they have to deal with it. With a debit card, you are out the real money until the situation gets resolved. For these reasons and more, these days I hardly ever use my debit card except to get cash out of the ATM.

To that end he sends this above example of a sign he saw at a gas station. Is this type of charge allowed?

Brian writes:

Under the VISA rules, how do you tell a "surcharge" applied to a credit/debt card transaction vs a convienence charge?

My wife recently went to get gas at a local gas station that was historically the highest priced gas in the area. Upon pulling up to the tanks, the actual low price was modified up by .10 a gallon for using any non-cash method of payment. Under MC/Visa rules, this looks to be prohibited, but how can you tell?

She didn't know any better and got gas there anyway, but when she got home I knew it was fishy.

Brian, you were right to think this was fishy. Gas stations are supposed to advertise a "cash discount" rather than a fee for using a credit card. This prevents people who pull over because they saw the posted price from getting an unpleasant surprise when they go to pump their gas. You should report this gas station to your credit card company.

An article from the Houston Chronicle shows that a some gas station owners don't understand their credit card contracts:

Bolduc said his contracts with the credit card companies forbid him from offering a discount for cash.

LeLacheur said some stations have contracts that allow them to offer a cash only discount and those discounts are becoming more common.

Other stations simply defy the credit-card company and let the company sue them, he said.

Visa Inc. and MasterCard Worldwide said in corporate statements that retailers, including gas stations, can offer a cash-only discount.

Visa said the cost of accepting credit cards is set by oil companies, not by Visa.

A "convenience" fee only comes in to play when the business normally doesn't accept credit cards. Clearly, this doesn't apply to gas stations.

For a more in depth explanation of the rule, click here.

Card fees can eat up profits at the pump [Houston Chronicle]

Just had to share our recent experiences with the self-checkout POS (ironic acronym) terminals at our local Lowe's, as this was the third and most ridiculous time this has happened:

After the long process of selecting our few meager items in a disorganized store with unhelpful employees, we make our way to the self-check out, hoping for a quick escape from the endless corridors of merchandise. Scan item, place in bag, etc.

We would like to use the debit/credit card associated with our checking account as a credit card (gotta love those bonus points), so we select the "Credit" option as our payment type. (Note that "Debit" is a completely separate option, which we did not select.) Slide card. Asked to enter PIN number. Since we do not want to use as a Debit card (with the PIN) we select the only available option: "Cancel". We know that virtually every other self-checkout that we use will then proceed to process the transaction as a credit card transaction. But Lowe's?

No! "Cancel" brings us back to the payment selection mode. More time wasted starting over: Re-select "Credit" as payment type. Re-swipe. Wash, rinse, repeat. In our previous two visits to Lowe's (when the same thing happened!), the POS would finally give the option to accept the card as a credit transaction after about the 3rd or 4th cycle. Fed up that this was happening yet again (with a different card and at a different self-checkout terminal, by the way), we decided to ask for help from a clerk whom we will descriptively refer to as GrumpyOldLady.

GrumpyOldLady proceeds to emulate the futuristic characters on Star Trek as she brings up screen after screen on the POS in rapid succession, meanwhile keeping us waiting for additional minutes when we should have been long gone by now. She manually codes in all of our personal details: card number, zip code, name, on and on — some details entered more than once.

After what seems like an eternity, the result flashes on the screen: Error, cannot process transaction. (Note that there was plenty of money in the account for this measly little $6.xx transaction, so this is not an issue of insufficient funds — just a POS POS.) GrumpyOldLady then proceeds to blame us for some reason; something about not being able to read the 3-digit security code on the back of the card (cataracts?).

She offers no solution to rectify the problem.

We do, however. Thanks, but no thanks. We take the card and leave, vowing to NEVER return to any Lowe's store. We are forced to go to the Home Depot at the other side of town.

Long story short: Lowe's is trying to force people into Debit transactions that cost them less in processing fees. Great idea - save the Credit processing fee and waste customers' time, causing customer to never return.

Thanks Consumerist, and goodbye Lowe's!

Does this happen at every Lowe's? Or is something rotten at this particular location?

For the unfamiliar, multispace meters, also called "Pay and Display" machines, are a central machine where drivers can purchase time on a particular space or print out a ticket to display on their dashboards; most machines accept bills and credit/debit cards, allowing drivers without quarters to purchase parking. Obviously, a $10 service charge negates this convenience.
Gary writes:

I recently used my bank of America credit card to pay for a multi-space parking meter in Washington DC. The type electronic meter common in urban areas for parking on the street and which accepts credit card payments. The charge for parking was $2. Bank of America treats this charge as a cash advance. They charged me a $10 cash advance fee on top. So now I will be thinking twice before using any bank of America cards. A transaction that should cost $2 can come out costing $12. Also, my card currently has a 0% promotional APR on purchases, but they put the $2 parking purchase in a separate category subject to a much higher interest rate.

Gary sent us a follow-up the next day:

I spoke to their CSR twice and I never really got an adequate explanation. I am attaching a copy of the email explanation they sent me. From what I understood, they now treat payments to government entities as quasi-cash transactions. During my last conversation the CSR explained that parking meters and payments of fines would now be treated as quasi-cash transactions subject to a minimum fee of $10. I think this is something new that they recently introduced and I have requested an updated version of my terms of service to get a better understanding of these fees.

(Photo: dM.nyc™)

I'm trying to find out a little more information concerning an issue I ran in to today with an oil company. Here's basically what happened...

I went to the BP gas station located on Barnett Shoals Rd on the East Side, to fill up my motorcycle a couple of days ago. I pulled up to the pump and swiped my debit card in to the card reader. It asked if it was a debit card, I clicked yes. It then prompted me to type my pin number in, etc. So, I did. I filled up the tank, a whopping 12 dollars. I went on my happy little way. I checked my bank account today and I saw an overdraft fee on my rent check, and my rent check had not gone through. Thing is, there was still money in my account. I called the bank to get to the bottom of it. They looked and saw where the BP station had put a $100.00 hold on my account. Apparently, these gas stations are holding 75-100.00 on debit transactions. They don't list this anywhere in the store as a policy either, so that you have the option to opt out. The bank basically said that this is something that gas stations are starting to do. I was irate! How are they allowed to access my account and hold anything beyond the price I purchased for. That is stealing. Sort of like someone coming into your yard and taking your lawn mower without asking, but intended to give it back later. They took money out of my account that wasn't theirs and without my permission! So, basically I now have about $100.00 in overdraft fees, both from my bank and the rental company. Now, typically this wouldn't be too much of a financial issue, as I usually have plenty of money to cover things. Unfortunately, this month money's a little tight, with extra things popping up.

So, after speaking to the bank, I called the oil company that was listed on the draft in my account. Acree Oil Co. I let them know that I was very unhappy about the situation and that I would no longer support the station where this happened, or any other station that takes money out of my account like that. The guy there checked with his people and they said that they have no control over it. It is the credit card company that does this. I said that I didn't use a credit card, and that my bank had just said that the oil company was responsible. He said that wasn't so. I also asked him why there wasn't a sign in the store letting people know about this policy. He said they didn't need to post a sign because they weren't the one taking it out, the bank was responsible for doing that. I then called the bank back to see if what he had just said was a lie or not. They said it was, and that they (the bank) have no control over it. I let them know that they do have a responsibility to protect my money, and that they should figure out how to prevent this. They were doubtful that they would be able to control this. They also mentioned that a lot of their customers have experienced this and are also irate. They mentioned some recent story in the news about it. They said that if they could do something about it, they would have already done it, because they have so many customers who are upset. Unfortunately, I had no knowledge of this even being an issue. Now I do and I want to make sure that as few people as possible have to go through it as well. The bank lady was nice. She mentioned a story about a mother recently having the same issue on a weekend when the bank was closed. She had no money in her account the entire weekend and could not buy food or diapers for her children. I think that this is wrong and should not be allowed. Rather than accepting it, I'm going to try to find a station that doesn't do this. So sorry for the long winded email, but it took me by surprise, and I would hate to see someone experience this. Also, does anyone have any knowledge of this kind of thing? Can they legally do this?

Thanks,
WW

Well, you may not like it (and we don't blame you) but gas stations have been doing this for some time. The Charlotte Observer explains:

When a consumer swipes a card at a gas pump, most gas stations freeze $1 as a confirmation that a valid checking account exists. That hold usually lasts for a few hours, but can stretch for a couple of days. The station later debits the actual amount of the gas purchased from the account.

As gas prices rise, however, the stations are increasing the amount of money they freeze in order to lessen the risk that they'll be ripped off.

The hold policies can cause financial headaches for consumers in several ways, said Nathan Tothrow, director of marketing for Charlotte Metro Credit Union:

A debit-card transaction might be rejected even though drivers have enough money in their accounts for the gas they want to purchase. “They have enough money for the gas, but not for the hold,” he said.

The holds can tie up cash that can't be used for at least a few hours. Unsuspecting consumers might have other transactions declined because the holds are in place.

And there's a danger that the holds can stay on for longer than a few hours, causing other transactions to cause an account to be overdrawn, triggering fees.

Tothrow said the credit union has received complaints about excessive holds. The bank investigated and found several gas stations were freezing $75 and $90. Most still froze only $1, he said.

“For a lot of folks, a $90 unexpected hold can cause a problem,” he said. “I really don't like that they are doing it to our members.”

What can you do about it? Not much. The NC Attorney General's office says to "use the debit card with a gas station attendant and enter your PIN number because there are no holds involved and the account is charged immediately for the exact amount." Of course, some banks still charge a fee for using PINs instead of signatures, so keep that in mind.

The bottom line? If you're in danger of a hold like this causing you to bounce your rent check— be safe and use cash.

Debit-card holds can take a nasty bite [Charlotte Observer]
(Photo: .schill )

Lila got her Washington Mutual debit card pickpocketed while traveling in India. Naturally, her account was drained. She filed a fraud report with Washington Mutual and a got a temporary credit issued on the account while the case was investigated. Less than 3 days later, the credit was reversed without warning. It's not WaMu's policy to reverse provisional credits in these matters before 30 days have passed to investigate, and not without warning. None of the various reps and fraud personal could explain why this happened, nor could they give her her money back, nor could they connect her with anyone who would or could do anything. Supervisors are mysteriously never around. It's a good thing she already had some Rupees in hand when the theft occured, or Lila could have been stranded in the Himalayas while WaMu reps were busy playing Snood. Her complaint letter, and our advice on how to be more effective, inside...

Thursday May 29, 2008

To Washington Mutual Management and Whom It May Concern,

I am not typically the kind of person who writes emails to large companies where the people on the receiving end are probably just overworked, and bored individuals in suits who could careless about me and my concerns. In fact I assume the majority of angry letter writers out there are well over their 60’s, but I am still under the age of 25. Still I am compelled to write in the hopes that someone in one of the offices out there will take a second to look at the appalling customer service that patrons such as my self are receiving on our end of the WAMU customer service phone lines.

Let me please explain my situation. Recently I have been in frequent contact with Washington Mutual due to the theft of my debit card. I spent the last about 6 months in India on a study abroad program. Around April in the city of Hyderabad, while on my way to another more remote part of the country, I was pickpocket and my debit card was stolen. I unfortunately did not fully realize that the card had been stolen until I was already in the far north area of India. Needless to say by the time I was able to contact my mother in the United States, through email, and her able to act on the situation, the perpetrator had already drained my account. Had I not already of had some money in Indian Rupees would I have been practically stranded in the Indian Himalayas. As soon as we could my mother and I started the claims process with Washington Mutual. I was issued an amount of provisional credit, contingent on the fact that I would have to sign an affidavit back in the United States.

Once returned to the United States I did sign and mail the affidavit. I was under the expressed impression that the provisional credit would last for at least 30 days, while the case was being examined. Unbeknownst to me the provisional credit was reversed less than 72 hours later. I received no email, letter or phone call to inform me of this situation so I continued to use my debit card, believing the provisional credit to be true and valid.

On May 24th I decided to sign up for Wamu online banking, previously I had just tried to keep a written record of my accounts. It was then, through the online banking that I realized my account was in the negative, mostly due to 264 us dollars worth of overdrawn fee’s.Then I saw that the provisional credit had been reversed on May 12th, after only being issued on May 9th.

I decided to call the customer service to investigate the situation more clearly. The women on the form told me that the customer service could not help me, that I had to call the claims department and that they were not open on memorial day weekend. She offered little consolation and absolutely no explanation. I called again on Tuesday, and after a 39 minute wait received the claims department. They gave me the run around and told me to call back on Weds. So I called back again on Weds. and had another nearly 30 minuted wait to reach the claims department.

This time I reached someone named Douglas who was very friendly and reassured me the matter was being investigated, but he could not explain why the provisional credit had been reversed. He admitted it was not their policy to reverse credit before the 30 day investigation policy, and not without communication to the account holder. I asked him if anything could be done about the eight $33 overdraft fee’s that were a direct result of the provisional credit being reversed without my knowledge. He told me he would notate my account and transfer me back to customer service to see if they could help me. I had previously deposited $450 into my account to have it directly eaten up by the negative balance. Being transferred back to customer service was a horrible affair. No one would help me, and each person said that it was only up to the claims department to reverse the charges now. The phone call ended with me literally in tears when the manager of customer service hung up me.

I called back again today, Thursday May 29th, hoping to reach Douglas again. Although for some reason he was unavailable, I did reach another associate in the claims department who was friendly and sympathetic. I explained to her that this situation had gone on for days, and I was down to my last $20. If this situation didn’t get resolved soon I wouldn’t be able to pay my rent, or my bills. Although considerate and helpful, she said the issue was under review but she did not have the power to help me and none of the supervisors who could were around.

Now it is Thursday afternoon and this issue has yet to be resolved. I am still dissatisfied with Washington Mutual’s treatment regarding this issue, and I am still confused to has how it got to this point. How can Washington Mutual claim to pride itself on customer service, and customer satisfaction when this situation clearly does not demonstrate those ideals. Even when, or if, this issue ever gets resolved I have to question my loyalty to a bank that so obviously does not respect me as a patron. People do not have to Bank. They are not entitled to our money, yet Banks seem have an attitude that customers are lowly creatures, especially customers like me who work hard all the time for the little savings we do have, and never seem to break even in our bills. Outrageous 33 dollar overdraft charges, and money that just seems to go missing sets a person in my income bracket back about a month. The money that was in the provisional credit, and the overdraft fee’s is the amount I need to pay next months rent and bills, due in less than a week. But Washington Mutual does not seem to care about small issues like this. I find it very sad and discouraging that right now I feel like stuffing my money under my mattress would be a better option than banking with Wamu ever again. At least my mattress wouldn’t make me cry, keep my on hold for 30 minutes, or steal my money in overdraft charges.

I apologize for being so snide, its just aggravating that the situation has gotten this far without any clear resolutions. Thank you for taking the time to read this letter.

Sincerely,
Lila B

Sounds like you're getting stuck in "I only get paid $5.85 an hour" hell. Here are some phone numbers for high-up people who can help you out better than what you've been dealing with so far. Call them up, calmly and succinctly explain what you want them to do, and they just might work some magic for you.

Some advice on writing complaint letters for fun and profit: they're usually much more effective if you can find a high-ranking executive and mail the letter directly to them. Dear Kerry Killinger is going to be more effective than Dear Washington Mutual Management and To Whom It May Concern.

Lastly, I would be remiss to not take the opportunity to point out this story illustrates the hazards of debit card use. Lila would have been much better off with a credit card. That way when it got stolen, the bank would have been out the money instead of you.

Executive Response Team
Customer Relations Manager
Washington Mutual Bank
(800) 225-5497 Opt. 1 Ext. 467
Fax (206) 965-3082

CEO Kerry Killinger
kerry.killinger@wamu.net
His assistant, Wendy: wendy.cadman@wamu.net
206-500-8779

CFO Tom Casey
tom.casey@wamu.net
206-500-4201

Chief Legal Officer Stewart Landefeld
stewart.landefeld@wamu.net

President and COO Steve Rotella:
steve.rotella@wamu.net
206-500-8302

(Photo: babasteve)

We join Todd as he attempts to report the merchant...

I disputed the charge. However, the dispute didn’t go through until March 1st. That is because I spent several days trying to get through to WaMu’s debit dispute department. I waited on hold for a total of 8 hours, including one stretch of 4 hours. It wasn’t until I had a customer service supervisor sit on the line with me that I was able to get through to the dispute department.

Once I got through, I thought everything would be okay. They sent me a form out, which I immediately sent back. I can send you my copy of the letter I sent them if you would like. They issued me a provisional credit. Since I did not hear anything for three months, and the company is fraudulent and no longer exists, I thought the problem was over.

Yesterday, I returned home at 8 pm from vacation to find my checking account was in the negative. I never bounce checks, and was shocked. I looked my account online and found out the original charge had once again been placed on my account. I was freaking out, but when I called WaMu, they said that the debit dispute department did not open up until 7am Pacific time this morning.

I called back in at 9. I waited on hold for an hour before being dropped. Once again, I had to get a customer service supervisor to stay on the line with me, and this time, someone from disputes did pick up.

I asked why I hadn’t received any information on the charge or why it was being reinstated. I was told that a letter was sent to me on the May 30th, Saturday, the same day the charge was reinstated. I have not received this letter. I was also told that in order to receive credit, I would have to provide an item description, copy of the cancellation policy, and a cancellation number. I tried to explain that the charge was fraudulent, the company no longer existed, and that I had never received anything from the merchant. The debit dispute person, who was very rude, and kept interrupting me while I was talking, said they could not issue me a credit without a product description, cancellation policy, and cancellation number. How are you supposed to provide such things on a fraudulent charge?

I have called WaMu executive customer service and left a message for Rosie. However, I have been unable to reach her. I also sent out an executive carpet bomb, but have received many of the emails returned.

Todd, its time to get out the big guns. You're going to need to file a formal complaint with WaMu's regulator.

Here's how you do that:

1) Contact WaMu with a formal complaint. You can do this in writing, or by email. Keep a copy of this complaint for your records.

2) Figure out which agency regulates your bank by calling or using FDIC's Bank Find. We happen to know that Washington Mutual's primary regulator is the Office of Thrift Supervision.

3) Write a formal complaint letter to the bank's regulatory agency. Follow the FTC's instructions for writing a complaint. This document also has the correct contact information for the various regulatory agencies. Keep a copy of this complaint for your records.

By filing a complaint, the regulating agency will investigate whether WaMu's incompetance actually violated any banking regulations.

You should also file a complaint with your state's attorney general about the scammy retailer that ripped you off. Keep a copy of this complaint for your records.

(Photo: stirwise )

The victims purchased gas at Arco stations, which only accepts cash or debit cards. Thieves attached a card-reading device to the payment machine's keypad that allows them to steal bank card numbers and personal identification codes.

It can be hard to spot a modded card reader or ATM machine, although if you see something that looks blatantly tacked-on you might want to think twice before swiping your card there. Snopes suggests you "get into the habit of using the same ATM for almost all of your transactions so as to better recognize when something is different with the machine."

"ATM card thieves have struck statewide" [MercuryNews.com]
(Photo: blmurch)

Perhaps most people use their ATM cards all the time, or already know this, but I was surprised and disappointed to find out that I could not use my card when I needed it.

Lucky for me this wasn't a dire emergency, but it was still enough to leave me temporariliy frazzled.

(Thanks to l i!)
(Photo: DarthMullet)

Bill ultimately entered his payment information 7 times. Each attempt cost him $233.15. Now his account is out $1,632, and Microsoft is refusing to help.

He writes:

My name is Bill. I work at a large University and deal with Microsoft quite frequently as an IT Manager. Recently I went to purchase the new Microsoft Windows Vista Ultimate operating system from their online store, Windows Live Marketplace for my personal use on my home computer. I filled out all the appropriate documentation and submitted my order to them with my debit card information and the nightmare began....

Upon selecting "submit" from their site I was immediately taken to a page stating "Microsoft cannot be contacted at this time" or similar, "Please try again later." So needing a license for Vista right away I resubmitted it and, again, got the same thing "Microsoft cannot be contacted at this time, please try again." After 6 attempts, finally, the 7th attempt was successful and I was able to purchase a copy of Microsoft Windows Vista Ultimate Upgrade (which turns out was not what I wanted in the first place). I thought all was well until the following morning... I received a call from the fraud prevention department at my bank stating I had been charged by Microsoft 7 times at $233.15!!!!!!

This was completely unacceptable and I immediately phoned Microsoft when I got to work. Microsoft stated to me that the problem was with the bank and that the charges hadn't actually posted to my account and I just need to wait for the bank to update their info so this is what I did. After a couple days nothing had changed in my bank account. I was still in the hole roughly -$500.00 thanks to Microsoft.

I called Microsoft again and was told my issue would be "escalated". Ok I thought. No problem they recognize the problem and are working to address it and get this taken care of. WRONG. They did in fact remove a couple of the charges (4 of them) but what about the other 3???? I contacted Microsoft Windows Live Marketplace and stated it has been about 2 weeks and I have still seen no change in my bank account. I then told them I would now like to get a refund as well for the one copy I did actually receive. That return was processed in the same phone call the way I would expect the others to be credited back to my bank account. WRONG again. So by this time I have spent almost all month without any money and being late on all of my bills and now, almost a month later, am STILL waiting on Microsoft to refund the other 2 charges that were posted to my account at $233.15. This is almost $500.00 and for someone who gets paid monthly is completely unacceptable. I have been calling Microsoft now for 2 weeks straight and all the Microsoft Windows Live Marketplace keeps telling me is "I am sorry sir your issue has been escalated to our product delevopment team and you should get a call back today or tomorrow." WRONG yet again.... Everytime I call its the same story "... it has been escalated sir sorry" "we will call you tomorrow" ..... No call.

I am really irritated and have asked numerous times for a number or email address to "Product Development" and they keep telling me they don't even have that information and that the system they use doesn't even tell the support person I am speaking with that contact information. WHAT KIND OF SYSTEM IS THIS?

I now have overdue bills and am going hungry for what would appear to be the rest of the month.... I suppose this is what I get for trying to do things legitimately with Microsoft... A big smack in the face.

I give Microsoft a lot of business being and IT manager at a large University but am extremely dissatisfied with this whole experience. I will be seeking Unix/Linux alternatives.

Please Help!!!!

The charges posting:
The charges clearing:
Bill could have protected himself by charging Vista to his credit card. Since Microsoft is unwilling to reverse the clearly erroneous charges, it's time to ask the bank to stand up and fight for its customer. If conversations don't help, leap over the hurdles of incompetence and fire an Executive Email Carpet Bomb at both Microsoft and the bank.

(Photo: johnsu01)
RELATED: Contact Microsoft CEO Steve Ballmer

Jason writes:

On Thursday I went to Blockbuster and rented a videogame for 8.47$. The next day I checked my online statement to find out that I was charged 8.47$, and then another separate transaction from Blockbuster for 1$. Considering the guy behind the counter had no idea what he was doing at the time I figured he made a mistake and called the Blockbuster back to investigate. They informed me that it is a relatively new policy on all in-store rentals for debit/credit cards in which before charging you the rental for the game, they first bill your card $1 to make sure that it is active, then they bill the rental in addition to that. The manager I spoke to said that they refund the $1 at a later date, but here I am almost a week later with no refund. If this is even legal, why not just charge the $1, and if it works, charge the normal rental price subtract the $1?

Ugh.

(Photo: Seth W )

Yes, I know it sounds improbable, but CVS stole $11.78 from me and refuses to give it back.

I went to CVS today, the one on Pleasant Ridge in Arlington, Texas. I purchased two items, decongestant spray for my nose and a pseudophedrine cold product. The pharmacy tech rang me up, then I ran my debit card like usual. The debit card went through, the card reader said $0 due, and then all of a sudden the computer decided to reboot before the receipt printed.

I told him that I clearly saw that my card went through before his computer crashed, and I didn't want to be charged twice. I saw that my card went through, even though no receipt printed. He called the manager, Adam. The manager told him on the phone that since no receipt printed out, my card hadn't gone through, and I wouldn't be charged twice. I asked him how he knew that for sure, and he said that no receipt means no charge.

I didn't really have a choice but to run my card again, since he wasn't going to give me my items unless I did. So I ran it again, and everything went through. I asked him what to do when I got home and found two charges went through, and he said he didn't know. I pressed the issue, and the real pharmacist chimed in and said it wouldn't be a problem, just come back and talk to the manager.

So, sure enough, I got home and checked online and saw I was charged twice. I went back up to the store and talked to the manager, Adam, in person, and he said there was nothing he could do. He suggested maybe calling 800-SHOP-CVS. I said that it was pretty obvious that someone in some call center somewhere isn't going to be able to refund my money, and he said there was nothing he could do. No apology, nothing, just wouldn't help me.

I called 800-SHOP-CVS, and, of course, there are no operators available. It just so happens that this is the worst timing ever — I can't call during business hours tomorrow, because I will be on flights all day. Unfortunately there was a death in my family, so I will be dealing with that, funeral arrangements, being out of town, family, wills, insurance, etc., and I really won't have any time or energy to call this number and deal with this in the upcoming week.

So what do I do? It isn't right that I'm out $11.78. Yeah, it isn't a whole lot of money, but it is MY money, and I want it back!

Don't worry, Julie. You don't have to wait for CVS to "give" your money back. You can take it back by calling your bank and explaining that you were charged twice. They should be able to handle this situation for you quickly and easily. If they can't, you might want to consider switching banks.

Don't wait to call your bank, however. Report the fraudulent charge as soon as you can.

Angry anti-corporate long-haired hippie Ryan Klute had this to say of the arrangements:

"I'm not an angry long-haired hippie against corporations, but it's a bad idea when the university and the company have a vested interest in you spending your money so they can make money off you."

The schools benefit from the exclusive agreements whenever students swipe the cards. They also receive annual payoffs that can reach $1 million. The banks cash-in when students like Brad Vehafric, a Portland State junior, accidently overcharge their account and get hit with $150 in fees for buying a cup of coffee.

In 2007, 127 schools had joined with banks to issue ID cards that double as debit cards, a 144% jump from 2002, according to CR80News, an industry publication.

A USA TODAY survey of the nation's 15 largest universities by enrollment reveals that more than half now have bank card relationships with financial institutions. In most cases, that means the student ID card doubles as a debit card.

"If the big universities are doing it, then it's likely the small ones will follow," says Margaret Reed, an associate accounting professor at the University of Cincinnati. "If I were a student, I wouldn't be happy" that colleges are pushing a product that earns them money.

Students shouldn't assume the bank account and debit card promoted by the university will be a good deal for them, says Greg McBride, a senior financial analyst at Bankrate.com.

"In life, you're going to pay for convenience," McBride says. "If the goal is to get the most out of your money, it pays to shop around."

Students should stay away from anyone hocking freebies or offering curiously convenient deals. Instead, find a credit card with a low APR and ideally, rewards, and pay it off in full every single month.

Colleges' debit-card deals draw scrutiny [USA Today]
(Photo: Getty)

Because of the recent data breech at Hannafords, I had to cancel my debit card, which I had used there recently. I had no problem canceling the debit card, but since I recently started charging my regular expenses on a rewards card and paying that off every month, I don't have any real need for a debit card anymore. I spoke with the teller, Brandy, asking her to cancel my debit card and replace it with an ATM card. Since I was canceling the card because of potential fraud, there's no charge there, but I then found out there is a monthly fee of $1 for not having a debit card with my checking account, which they refer to as Key Express Free Checking.

This struck me as odd that they charge extra for the privilege of not having something.

(Dollar background: Sami Keinänen)

(Photo: Ben Popken)

He writes:

My wife and I went on our honeymoon in March of 2006. We both had saved about $2,500 to spend on our ten day trip. Rather than paying currency exchange fees and carrying a huge amount of cash with us, we opted to carry our Bank of America Visa debit cards with us and withdraw smaller amounts of cash at Citibank ATMs (which only have very minimal cash withdrawal fees).

Both of us called Bank of America's customer service about two weeks prior to our trip and went through the whole ridiculous ID verification nonsense you talked about. We spoke to their fraud protection department and let them know on each of our individual cards that we would be in Japan during that time and that we would be making frequent large purchases and cash withdrawals on our cards. They assured us that everything was taken care of and we'd have no problems using our cards while we were in Japan.

On the third day of the trip, we went to Akihabara to make some video game purchases. I found the only Wii system we saw the entire time we were on the trip and tried to buy it. My card was declined, which was incredibly embarrassing and difficult to deal with because of the language barrier. My wife tried her card and it went through, thankfully. The next shop we came to had something she wanted to purchase, at which point her card was declined. She paid with the cash she had left over, leaving both of us with about the equivalent of $15 total in cash.

We assumed we'd hit some sort of daily limit and thought we'd just get more cash out the following day and it'd be fine. When our cards were both declined at the ATM the next morning, we got worried. We spent the last of our cash on the cheapest phone card we could find so we could call the bank and get this mess taken care of. We scoured their website looking for a 24-hour customer service number but couldn't find one (with the time difference between here and Japan, they had just closed their main customer service department and it would've been 10 or so hours till it opened again). We tried calling the other 24-hour numbers to see if there was a way to get to someone that could help us.

We ended up having to spend an entire day sitting in our hotel room doing absolutely nothing waiting for their customer service department to open. We didn't have any money for food and all we were able to eat was a few candy bars we had picked up a few days prior. When we finally got to talk to someone that night, they said we should've tried the 24-hour number and that the other people we spoke to should've given it to us. Both cards had been frozen due to unusual activity and they basically said it doesn't matter that we told them exactly what we were going to be doing. They assured us we wouldn't have any more problems this time, but when we went to get money out (about a mile away from the hotel) my wife's card was declined again. After walking back to the hotel and getting it fixed again, we were able to use our cards for the rest of the trip without a problem.

Still, we wasted an entire day on our honeymoon in Japan, wondering if we would even be able to fix the problem at all. When I called customer service when we got home, I was told that the problem was our fault because we were relying on those two cards. Their reaction to what happened was that I should've had other credit cards or cash available in case there was a problem with our Bank of America cards. It took me more than six months and countless phone calls with threats to move my accounts (two checking, two savings, a money market savings, and a mortgage loan) over to another bank for them to take any responsibility and offer me a $300 credit for the time lost and the poor experience.

Sorry for the lengthy email, but I couldn't resist when I read your article. Bank of America has absolutely horrible customer service and more people need to be aware of it. I'm glad someone with access to a widely read forum was able to post this sort of information and get the word out.

PREVIOUSLY: Bank Of America Won't Let You Access Your Money
(Photo: mrhayata)

So tonight I went to my local Best Buy, planning on surprising the wife with a new bigscreen TV.

We get there and, believe it or not, the Best Buy people are helpful, friendly, informative and DON'T try to push Monster cables on me. (I know - I nearly fainted too).

Having done my homework, I picked out a receiver, speaker system, wall mount, some blue ray movies , and a 58" plasma TV. Total cost : $5870.69

So I head to the register to pay for my newly acquired goodies and my card - despite having a few grand more than the total in my "available funds" is declined.

Puzzled - I call Bank of America , wait on hold about ten minutes, go through countless adverts for bank services, double authorizations etc and FINALLY I get to a human. Of course in spite of all of this the woman wants my information all over again even though I just typed it in. She wont even help me til I provide it and so I do.

I explain that I am in the store, at the register, and that I know I have available funds.

She puts me on hold about 5 minutes , then comes back and says "Im sorry - that's over your daily limit. There's nothing I can do. Was there anything else I can help you with?"

Remembering to keep a cool head, I ask about a supervisor giving me an override on the limit. She says "let me transfer you to the ATM department." And before I can explain that this isn't an ATM problem, she disconnects me.

Frustrated - I dial again, more menus, get a human, get transferred, get another human, get transferred, (every time re-verifying my ID)finally I get to the FOURTH person who apologizes 10 times and says "don't worry sir - I can help you!"

I think I'm getting somewhere but then a supervisor comes on and explains to me that "Everyone in the United States that uses Bank of America has a daily spending limit of 5000.00 no matter what."

Stunned, I ask for an exception and in a parent-giving-me-a-cookie tone he says "well, I suppose we can up that to 6000.00 just this once."

At this point I am over an hour on the phone but we try the transaction again. Declined.

More hold time. He comes back and says that he is sorry but 6000. is the limit and buying gasoline and dinner earlier in the day is going to put me at more than 6 grand for the day and so I can come back tomorrow and buy the TV or I can go to my branch and get a money order.

Fuming, and doing my best to remain calm, the conversation goes like this:

"Let me get this straight - I have an "available" balance of nearly 10 grand in my account?"

"yes sir"

"And its not pending or a deposit waiting to clear, that's my money, confirmed and in your bank?"

"yes sir"

"And you have kept me on the phone for over an hour, asked me multiple times to verify my identity and are satisfied that I am who I say I am?"

"yes sir"

"And you are going to deny me access to MY money?!?!"

"No sir - we are not denying you your money, your're just over your daily limit."

"My daily limit? This isn't a credit card. It's a PLATINUM Visa checkcard. I understand that you have to put limits in for my protection but I need to make this purchase"

"Im sorry theres nothing I can do"

At this point, after nearly an hour an twenty minutes on the phone, I lose my cool. I am embarrassed, have essentially shut down a register lane on a Friday night at Best Buy and am obviously the talk of the store both from employees and customers.

I ask to speak to a supervisor and am told that I am speaking to one. I ask to speak to HIS supervisor and am told that's not possible.

Out of desperation I ask again and he says "wait just a moment"

More hold. Ten more minutes. I am fuming. He comes back and excitedly tells me "try it now."

So for the umpteenth time I swipe my card. This time it comes up "authorization code needed"

I relay this to the BoA guy and he says "well, we are making progress"

A few more minutes of hold time later and he comes back with the code and makes my purchase go through.

I have NEVER experienced such shoddy customer service ever. Im sure Im preaching to the choir when I say this, but Monday morning I am cancelling my BoA account, and fellow consumerists - Stay the heck away from Bank of America!

As a side note, after the transaction was completed I said to the supervisor, "So, what if I was say, Donald Trump and wanted to spend 30 grand on something?"

His response, " Well , for Mr Trump we would have made an accommodation ahead of time."

I said "And if I'd decided tonight to buy the $14,999.99 71" plasma TV in here this evening?"

"You wouldn't not have been allowed to do that."

At that point I hung up.

Sheesh!

(Photo: Getty)

First, here's Emily's original email from two days ago:

I am sitting here in amazement after reading your post "HSBC Won't Tell You