I know the banking industry is full of bull, but I just learned this bit of it myself.

Yesterday I used my Debit Card to purchase something for $400.

I immediately realized that I gave the wrong card, so 2 minutes later, the merchant credited me back the $400.

The debit (charge) for $400 appeared on my account immediately... but I have to wait 3-5 business days for the credit to show up.

The manager at my bank tells me that this is an "industry standard".

What a CROCK!

My guess is that there are tens or even hundreds of thousands of people out there who were issued a credit to their credit or debit card... and in the 3-5 business days that it takes for the money to hit their account, SOMEONE is getting interest on that money.

Who in the world can someone complain to about this sort of ludicrous nonsense?

Have you thought about the BBB or your Ombudsman? (spelling)

The Durbin Amendment of Dodd Frank will make debit card transactions less profitable for the banks ;they will make up the difference somewhere else.
Should the government be deciding bank profit margins on debit cards? - The Small Business Authority - - Forbes

Durbin?s Innovation Killer — The American Magazine

Banks are there to make money, not cater to the cardholders. They are certainly not charities and certainly want to hold onto all money as long as they can get away with it. Can't complain as nobody will listen to you. They run the show. Have to pass a law otherwise.

Don't tell me, Bank of America? I love my local bank, they've always treated me well. If it's a big bank like BOA good luck getting anyone to even listen, much less care.

You might be lucky you don't get a transaction fee for it but isn't there an ombudsman you can complain to

I've spoken to several people about this and they all say the same thing: This is typical banking industry stuff that has nothing to do with the merchant or the local bank.

It's the "industry" (aka the people that run Visa/MasterCard) standard.

Next time I want to return something, I'll ask for cash or a store credit before allowing them to put it back on my credit card.

Same thing happens when you reserve hotel rooms, often when you check in, what on a credit card would be a hold on the money is a charge, then when you check out, it is charged, and it takes about 4 days to get a credit for that first charge. Happens at almost every major hotel you stay out if you use a debit card.

Same thing with some gas stations, they will do a "check' to see if you have 50 or 75 dollars on the card, which then is held, and is held for that 3 or 4 days.

Often on a real credit card the credit is applied faster, but on debit cards there has historically been a delay, been that way for years.

I'm still on the overdraft crusade . I would never use a debit card for that reason alone. As far as I can tell ;Dodd -Frank creates a super unaccountable consumer protection czar and agency ;and there is a provision for a consumer's opt-in consent .

Now in 2008 $24 billion was collected by the 'too big to fail' financial institutions from consumers overdraft. If Dodd Frank does indeed reduce revenus to the banks from this consumer rip-off ;you know the banks will find their revenues from alt sources connected to debit card services (fees at the ATM ;charges to the merchants etc.).

Hello Rick:

Well, you COULD complain to Elizabeth Warren, the head of the new CONSUMER protection agency... Her agency was formed to combat the exact ripoff you mentioned...

Oh, that's right... The right wing doesn't think you need consumer protection, so they're fighting her nomination... Bummer for you, Rick.

excon

... and of course you are of the opinion that all regulation is a good thing. Yeah ,just having the title 'consumer protector ', endowed with authoritarian powers, means quid pro quo that Warren ;unbound by any accountability to the branch of government that will fund her agency ;and permitted to write code on a blank slate because her mandate is so broad ,will always look after the consumer .When the Obots start restricting consumer credit and people are prevented from taking out consumer loans because there is irrational consumer behavior;or when the financial institutions pass on the cost of the regulations (as they have already begun with creative fees like the one Rick is complaining about) ,then we'll talk again about how consumer friendly she is.
For the record;it was not irrational consumer behavior that led to the financial crisis .They acted rationally .They took out favorable loans and some defaulted when the economics changed . The fact that they were offered too favorable loan terms was the problem;and not surprising... it was because the government mandated and encouraged such behavior.

Their solution to the stupid consumer that can't make a rational choice is to dumb down loans and standardize them .This of course means less consumer choice... always a good thing... right ? Maybe we should go back to no-frill ,no cash back ,no frequent flier or other incentives ,high interest rate credit cards... eliminate debit cards because consumers are too stupid to understand the terms.

There is sizable overlap of regulatory responsibilities with already existing agencies. I don't see any effort at all to consider consolidation of them . So this agency will add to the already bloated bureaucracy .

I'm not opposed to a Federal watchdog for consumer protections . Give her regulatory agency a clearly defined mandate and select someone to the post who doesn't think 1st amendment protections should be 'dialed back'. But what is needed is a consumer advocate who's limitted role is the guard against consumer fraud.Will she go after the ratings agencies that made junk triple A ? Probably not.

Hello tom:

If my choice is between an out of control watchdog, or an out of control banking system, I'll opt for the watchdog...

Let me ask you this. I suspect you own a credit card. I suspect you receive monthly paper bills. I further suspect, that you, along with every other card holder, are the proud recipient of your monthly CHANGE in your agreement with your bank... You KNOW the piece of paper I'm talking about... The one printed in teeny, tiny, font on both the front and back of what looks like toilet paper... You know the one... Do you read it?? Of course, you don't... The bank COUNTS on you NOT reading it, because they're arbitrarily CHANGING your contract in ways that you wouldn't like if it were SPELLED out in plain English...

If Elizabeth Warren had her way, it WOULD be.

Now, there are some Republican lawmakers who would say that meddling into THOSE areas is WAY beyond consumer fraud... The bank should be able to communicate with its customers ANY way they like, thank you very much...

Let me ask you this, too... You know those commercials on TV where at the end the spokesman starts talking SO FAST that you can't understand what he's saying... Of course, he's saying stuff, that the government REQUIRES him to say, that the consumer MIGHT not like if he could make heads or tails out of it. Wouldn't it be better if those warnings were SPOKEN in plain English?

If Elizabeth Warren had her way, I WOULD be.

excon

Consumer choice assumes that consumers will take some responsibility for their choices . Yeah we sometimes pay a price for bad choices. We also pay a big price for an all intrusive nanny-state too.

Debit cards will probably be regulated out of existence despite their overwhelming popularity.So Rick will not have to worry any more about those hidden fees. You wouldn't know so many people were getting screwed so often would you ? It's a good thing we have the government to point it out to us.

Hello again, tom:

I'd agree IF there WAS a choice. Do you know of a bank that offers one??

excon

Sure there are... ING for one has no ATM or over-draft fees . There are many banks that offer over-draft protection and the option of opting out of it. Do your research . There are plenty options .I shop around for credit card deals constantly .
A consumer advocate should educate and go after fraudulent behavior. It is not deceptive and or fraudulent to have fees . Fees are how banks make money providing the services that banks provide.