Checking acct ? Does your bank...

[Dancemom03]

Pay checks in highest to lowest order or do they pay the lowest checks first with highest check/debit amounts last?

From what I've seen most of the larger banks seem to pay highest to lowest which could result in a slew of bounced check fees if colloege kids lose track of where they've been with the debit card or forget to subtract those extra ATM fees added on to other banks' ATM withdraws.

A friend's son just got hit with over $300 in fees b/c he didn't record all his debit card transactions in his register. Since the bank processed items in highest to lowest order, four of the transactions he's paying $35 OD fees on are for Burger King and were under $10!
DD19 is usually really good but mistakes do happen. After hearing of this nightmare, we're looking for a bank that pays lowest check/debit amounts first just in case. Does yours, by chance?

 

[parkers*momma]

Our daughter's bank did this once and I went down and talked to the bank manager. After pointing out just that...that actually only one check would have bounced if they would have went lowest to highest, they refunded her overdraft fees.

Might be something you can talk to the branch manager about.

 

[Soon2B4]

They generally will pay highest to lowest. We had a new account and we were juggling 2 accounts until we got everything set up with the new one. We had a mistake on our part one day. They tried telling us they paid according to what order the card was scanned. I proved showing receipts that according to that rule they shouldn't have charged us so much. Then they changed their story and said it was highest to lowest. My DH works there and they still wouldn't take care of even 1 of his fees on top of the fact it took 2 months to get his debit card to access his payroll.

 

[Chicago526]

I'm pretty sure my bank processes them in the order in which they get the debit, but I don't have a lot of transactions on the same day, and anyway, I always balance my check book! I bank with Chase, but you may want to call them to verify how they do things.

 

[Justsyd2]

My banks seems to just pay in whatever order they want. We have overdraft protection so I never have to worry about it. Is that available for your account?

 

[toobie75]

Ours pays highest to lowest. DH misregistered one of our checks a few years ago and we bounced left and right. He went down to talk to them to see if they would waive the fees and they basically told him that they do it that way to make money. They will also double ding you if you have a debit pending that holds the money, a check goes through that's more than what's left and it will bounce, they will add in their fee and then when the pending debit goes through (which was already holding money) will bounce as well.

 

[pilesoflaundry]

I'm pretty sure mine pays in order of transaction but if a lot of transactions go through in one day they pay highest first.

 

[surfergirl602]

I think they should put them through in the order in which they are spent. it really drives me nuts - they just want those fees!!! Most banks seems to put them through whatever which way will make them the most money in fees. It's really stupid.

 

[Dancemom03]

Ours pays highest to lowest. DH misregistered one of our checks a few years ago and we bounced left and right. He went down to talk to them to see if they would waive the fees and they basically told him that they do it that way to make money. They will also double ding you if you have a debit pending that holds the money, a check goes through that's more than what's left and it will bounce, they will add in their fee and then when the pending debit goes through (which was already holding money) will bounce as well.

That's exactly what worries me. Not that I'm planning on it but DD19 has her own acct so - don't tell them, mind you - but I know I can't be in control all the time for everyone, everywhere.

We're in the process of changing banks and eventually she'll move her account also so I can help out with an occassional transfer if needed - our small local bank with a new snarky busy body manager who's younger than my acct there pays lowest to highest - meaning they could bounce your mortgage if you goofed but all your $5 happy meal debits get paid and you wouldn't get hit with more fees than neccessary. I'm hoping someone might know of one of the bigger banks that does also.

Thanks everyone!

 

[scrapquilter]

when multiple checks are presented in the same day, my bank pays by check number, starting with the lowest check number, regardless of the $$ of the checks.

 

[MickeyMomOfThree]

Our bank does it high to low too. I'd be happy with $300 in fees. In December my DH accidently hit pay now instead of pay on payday when doing online bill paying. He didn't realize until we were over $1000 in the hole including over $700 in fees. What's worse, one of the fees was on a $1 popcorn at Target for my DD. The worst was I had bought somehting and found it cheaper somwhere else so I rebought it and returned the other one paying 2 $40 fees to save $15. My dh went into the bank literally in tears saying we had no money for food, let alone Christmas and we were given one $40 fee returned as a "courtesy". I went and begged and nothing. If they had done everyhting in order we would have been overdrawn and had one fee, instead we had over $700 in fees and have a horrible feeling about that bank. I wish your friend more luck in getting the fees reversed.

 

[ajk912]

My bank pays highest to lowest. They say it's because most customers would want their mortgage and car payment paid if it came to it, not the little $5 here, $8 there. But if they put them all through and don't bounce anything...it seems like load of BS to me.

 

[msmayor]

Seems to me that regardless of how a bank decides to pay, one time of a youngster suffering through overdraft fees because of neglecting the bookkeeping part would be all that is needed to remind him/her of the importance of keeping track of their purchases.

Adult world, adult responsibility.

 

[RobinFabulous]

You also need to ask how they handle debits vs credits.


Do they put a deposit in first then take out the checks/checkcard charges or do they do it opposite?


My bank does credits (deposits and refunds) then highest to lowest.

 

[Princess April]

My Credit Union pays lowest to highest... just another reason why I doing my banking with a credit union rather than a "bank"!

 

[bumbershoot]

My banks seems to just pay in whatever order they want. We have overdraft protection so I never have to worry about it. Is that available for your account?

We always have overdraft protection too, but all that that means is that you don't actually *bounce* the checks. They still will charge the fee for each thing they pay!

Our bank does it high to low too. I'd be happy with $300 in fees. In December my DH accidently hit pay now instead of pay on payday when doing online bill paying. He didn't realize until we were over $1000 in the hole including over $700 in fees. What's worse, one of the fees was on a $1 popcorn at Target for my DD. The worst was I had bought somehting and found it cheaper somwhere else so I rebought it and returned the other one paying 2 $40 fees to save $15. My dh went into the bank literally in tears saying we had no money for food, let alone Christmas and we were given one $40 fee returned as a "courtesy". I went and begged and nothing. If they had done everyhting in order we would have been overdrawn and had one fee, instead we had over $700 in fees and have a horrible feeling about that bank. I wish your friend more luck in getting the fees reversed.

Seems to me that regardless of how a bank decides to pay, one time of a youngster suffering through overdraft fees because of neglecting the bookkeeping part would be all that is needed to remind him/her of the importance of keeping track of their purchases.

Adult world, adult responsibility.

Good point.

 

[61292cna]

My mom is moving her account, because her bank does highest to lowest & then any deposits, so you can technically have plenty of money in there & still end up with overdrafts & fees.

 

[kboyertcu]

Ohh this happened to me once!
I actually called and talked to a representative ( Wachovia) who said if it happened to here she would be mad too! She immediately had the money refunded to my account!
Worst they can say is NO!

 

[Inigo]

We've got checking accounts at a locally owned bank that has branches in three counties. They deduct purchases in the order in which they come in.

I'm on all three accounts (1 for DH and I, 1 for DD, and 1 for DS) so all three show when I log in to my account on their website. I do random checks to make sure the kids don't overdraw.

 

[Piecey]

I'm pretty sure my bank processes them in the order in which they get the debit, but I don't have a lot of transactions on the same day, and anyway, I always balance my check book! I bank with Chase, but you may want to call them to verify how they do things.

Chase is highest to lowest.
Credits always post before debits, too.

We always have overdraft protection too, but all that that means is that you don't actually *bounce* the checks. They still will charge the fee for each thing they pay!

For most banks, ODP is a less severe charge than an overdraft charge. At Chase, it's $10 to transer the money from a Credit Card/Savings Account (whatever you have set up as your ODP) for the entire day. If you didn't have ODP and had 3 things come through, you'd have $35/piece in fees.

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Thought process of paying highest to lowest is..... say you write 3 checks in one day. One to the grocery store, one for your mortgage, one to your neighbor's kid for mowing the lawn.
Depending upon your account history, the bank may or may NOT pay all three checks.

They pay the biggest first because usually the biggest is the most important. In the case of my example.. the mortgage. So the check to the neighbor bounces but you can just give him cash. Bounce a check for your mortgage and you're in a lot more trouble.