Should banks be considerable when not allowing a customer to overexceed finances

What about outstanding checks on that account? That is usually why people overdraw. A check hasn't cleared the bank yet. When it comes through, then you are overdrawn. Are you saying that if my account has $400 in it, that I could withdraw %500? That doesn't happen with my account. They give me a total. I would not be allowed to take out more. But, of course, they don't take into account any checks I may have outstanding. That's my fault. I would need to balance my account.

My banks ATM does not allow me to withdraw more than like $40 (I think it is) over what I have in my checking/savings. I thought all banks atm worked this way?

One of the good things living in the Philippines is that our ATMs does not allow us to over-withdraw from our accounts. The machine automatically gives an error prompt that your account does not have enough money or that you have punched in an incorrect amount. But it would be nice to get extra funds then just pay it back. It's like getting an I.O.U. from the bank. LOL.

I don't see why the bank or the ATM should give out more than what is in there. That is just plain stupid and of course causes problems for the person, not the bank as they will charge a fee for giving you more than you have.. that just puts you that much farther behind and harder to catch up - if you didn't have the $20 in the first plac,e why should the bank think you'lll have the $20 plus a large service fee in the second place? It is kind of like a home mortgage... a buyer is qualified on GROSS earnings, not Net. So they are qualifing you to make a payment using money you don't even get to say if you qualify! THe first insanely stupid step in the existing foreclosure crisses in this country- telling a buyer they can afford a payment if they use money they don't have

I questioned the same thing, my husband had four overdrafts on his account because he was able to spend/withdraw more than he had. I asked a person at the bank about this and he said, that they do it so that someone who is buying something regardless of how small the amount, that they would be able to do so. In other words, they would not disallow someone to buy something for $5.00, if they only had $4.00 in their account. The bank doesn't care because the person will end up spending $39.00, because of the bank fees. I think this is wrong, if you do not have the money the bank should not allow you to withdraw or spend more than you have, but some banks do this in order to collect the additional fees.

Hello my friend craem97 Ji, First of all, I am with you to say that a account holder shoul under any circumstances not allowed to withdraw more than allowed by the bank as per terms and conditions. Undrer no circumstances, over-draft should be encouraged. next even ATMs have facility to provide you a balance after last withdrawl, so another software should be developed , in case not available, to check the balance and refuse withdrawl as the case may be. may god bless you and have great time.

i do agree with you,it may not always be possible for the customer to check the balance.if there is over withdrawal,there is unneccessary wastage of money.maybe that is a plot by the banks to make more money.

There should be a way to prevent a customer from overdrawing, but I guess the banks want their overdraft fees that often are more than the actual amount the customer has. I know on credit cards, there is a limit and if a customer charges more then the limit, he gets a worse rate. I would think that a situation that would prevent the customer from drawing more then he has from the atm would be a good idea. The problem is how to set it up. You would have to put each customer's bank money into separate compartments much as they do with safety deposit boxes, and you would have to hire more people and have the money go down separate slots. I do think they must have something similar, but I have not actually tried to see if it works. I do know when I get that little slip of paper out it tells me how much I have left.

ATM machines are set up the same way. ATM machines check your balance and make sure the funds are available before it gives you money. If you don't have it in your account, then it will say insufficient funds or something to that effect. The problem is that if you have gone and written checks or used your debit card to purchase things that have NOT CLEARED YOUR BANK ACCOUNT YET, then your bank will show that you have enough funds available when you go to the ATM. Say you have 200 dollars in the bank and you write a check for 75 dollars and spend another 100 dollars on your debit card. The debit transaction will likely clear the same day if it's before 2 PM. However, the check could take 2 or 3 days for the bank to receive. The bank doesn't take money out of your account until they receive a check that you've written or notification of a debit purchase. So, if you go to the ATM the day after you spend this money, the bank will show that you have 100 dollars because the check hasn't cleared yet. You need 50 dollars to take your date out to dinner. The ATM gives it to you because your balance is only reflecting the debit card purchase of 100 dollars. However, when the check clears the next day or the day after, your account is now withdrawn. This is how the banking system works. The same thing applies to using a debit card for purchases. If the money isn't in there, then your card will be declined. If the money is in the bank at that moment, then it will go through. This is why it's important for people to keep track of their finances so that they know how much money they have after purchases to avoid overdraft fees.

Well, in my bank I can't withdraw from my ATM the money that is more than what I have in there. The machine will not release the money instead would tell me that I have insufficient funds for that amount that I am asking. So, I don;t understand why some ATM can release money that is beyond your funds?

I have worked in a financial institution and it is hard to understand from the outside looking in, but often your transactions have not gone through your account when you might withdraw from the ATM,(even with your debit card- it is not instant withdrawal!) and therefore until those transactions go through, you will show having the money there. Where I worked the transactions that come through during the night around 2 am when no one is working at the bank, and are posted early the next morning and someone is responsible to see if those items will pay. Often they will pay them as it would cost the customer even more fees if they have a return item than for them to pay an NSF fee. For instance, if you wrote a check to the grocery store, the store would charge a return check fee of maybe around $25.00 and then the bank would also charge you the NSF fee which would DUOBLE FEES what you would pay than if you just owe the bank! Too many times the same people will run their accounts in the negative and this makes it too hard for the bank to rely on getting their money back if this occurs over and over. If you went to any other place to spend money you did not have ,do you think you would get the service? Then why should the bank?? Some stores have a set amount of debit for point of sale, if yours stays within that limit whatever theirs may be, they may not run your transaction for two or three days. SO the money you spent is up to you to keep up with , not the financial institution who has tons of accounts with no control of how you spend your own money. So many times the bank workers are cursed at and treated ugly for doing something with "your money" when YOU are the one that spent it. The bank person had no control! I hope this helps you to see some of the other side of the story and better understand how it can happen. ATMs are also often not serviced by the bank themselves at all but by places like Wells Fargo and they jujst give the receipts to the bank after they refill the machine so it is not the bank who immediatley handles the transactions at that time.

I think the person who's account it is should figure out how to manage their own money before withdrawing any funds. Although, You do have a point that the teller wouldn't let you do it, so an ATM shouldn't let you do it either.

Hi cream! I think that ATMs should not allow a person to withdraw funds they do not have. These are the ways the banks make money though. They make millions off people that miscalculate their funds. They depend on people making mistakes and some even like to add hidden fees or little fees to make it harder to balance their account.

well some times it so happens that excess amount comes in the account which is not ours by mistake made by the bankers but they check up the mistake by the end of the day and they intimate the person if he has withdrawn the amount and if the person is not able to pay instantly they will give him a time of 15 days and then issue him showcause notice

Personally, I believe it's a ploy to get people to pay overdraft fees and such. Just a way to get more money out of the customer. I think as a courtesy the bank ought to not let the customer take out more than what they have to avoid all these fees. At first it may seem inconvenient for the customer, but, in the long run I think the customer would appreciate it. I know I would! Purrs, Catwoman=^..^= & Mija