Changes to All Debit Cards Take Effect

By: Jamie Edmonds Email
By: Jamie Edmonds Email

We've all been there, you make one purchase too many, which puts your account into the negative, then all of a sudden that meal or cup of coffee ends up costing a whole lot more.

"In the past that has happened to me when I was younger," Dawn Kibbey said.

Overdraft fees can easily add up, but the Federal Reserve is hoping that new rules -- which took effect Sunday-- will put an end to that practice.

"For example, if you were at the gas station and didn't have the money in your account or any other cards, you would be stranded," Kimberly Dunn of Option One Credit Union said.

The way it works now, if you do not have the money in your bank account to cover the purchase, the card will automatically be rejected. Consumers do have the option to "opt in" to overdraft protection provided your bank if you so choose.

"Consumers have the choice to say yes, I want my bank to cover me at times when I don't have the money to cover those one-time transactions," Dunn said.

Of course that comes at a fee and there's no limit to how many times a bank can charge you. Dunn said many of their customers are willing to pay for piece of mind.

"So when they go to dinner or make a purchase they are covered," she said.

Others say there are pros and cons to it, and they'll have to think about what they want to do.

"I'll have to look further at the information," Linton Ellis said.

"It's probably a good idea," Kibbey said.

You can opt in or out at any time.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by James Location: Lansing on Feb 24, 2012 at 07:12 AM
    SO, what is the change?? This is nothing new. Can you please tell us what the 'new rule' is?? This article talks about everything we already know except for covering the premise of the article? "Changes to All Debit Cards"? What's the change?
  • by Wanda Location: Lansing, MI on Sep 12, 2011 at 05:44 PM
    Debit Cards are great, as long as you follow a few rules. 1. ALWAYS record when you use it, for what,where, and the amount! 2. ALWAYS keep a running record (like in a check register)to know your balance at all times which will avoid embarrassment, overdraft fees or any other fees your bank comes up with.
  • by Stacey Location: Canada on Sep 20, 2010 at 04:29 PM
    I just tried to use my debit in Michigan and got denied even though I have enough funds...US banks can't check Canadian accounts so they denied my card. what a stupid thing to do. PLUS system is in place for a reason but if Canadians can't use debit in Michigan...guess what...no more Michigan shopping trips!
  • by ChatChic Location: Lansing on Aug 17, 2010 at 06:27 AM
    Seriously! I like to read comments about the article itself. Not “Once again, WILX makes itself look foolish. Hire some proofreaders, or get your editors off their duffs to do their jobs. That is pathetic.” Or “I believe there is an error in the writing of this article. It should be "peace of mind", not, "piece of mind", right? Have a great day =)” You spend all your time looking for errors in articles. You have way too much time on your hands. Why don't you spend your time working in a soup kitchen or volunteering at a homeless shelter. Get a life already!!
    • reply
      by Anonymous on Feb 23, 2012 at 06:04 AM in reply to ChatChic
      @ChatChic: We look to journalists to provide the BASICS of writing: who, what, when, where, and why. This article IS lacking a few of those, including the spelling gaffs, which are DISTRACTING for those of us who DO want to understand what's being written. And what does "volunteering at a homeless shelter" have to do with the article? Take your own advice!
  • by Pam on Aug 16, 2010 at 10:22 PM
    It didnt matter if you had the overdraft or not before. I have used my card and had overdrawn my account a couple of times and was charged for the overdraft but never had my card taken. A lot of it depends on how many times you do it and what is the policy of the bank. i also overdrawn from another bank about 10x's and they did not take my card till the 11th time i went to do use.
  • by Kelly Location: Lansing on Aug 16, 2010 at 08:31 PM
    "Dunn said many of their customers are willing to pay for piece of mind." Once again, WILX makes itself look foolish. Hire some proofreaders, or get your editors off their duffs to do their jobs. That is pathetic.
  • by Anonymous on Aug 16, 2010 at 05:27 PM
    If you dont have the overdraft protection, then you do not need to worry about overdrafting.
  • by Lisa Location: Lansing on Aug 16, 2010 at 04:43 PM
    I believe there is an error in the writing of this article. It should be "peace of mind", not, "piece of mind", right? Have a great day =)
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