[quote=briansd1]KSMountain, I don’t see how you can defend banks charging $20 overdraft fee on an EFT transaction of $2.

Bank electronically choose to process the larger transactions first so that they can stack multiple processing fees on the smaller overdraft transactions. That way, they reap thousands of percent in interest charges.

Would it not be simpler to force them to decline the transactions of people who have no money in the bank? In a cash system, that’s how it would work.

The bank free structures are not providing anyone with access to credit. It’s raping them for lack of credit.[/quote]

I guess Brian doesn’t remember the old days…when very few people paid by CC and no one paid by debit card in the store. It was usually cash or check. Back then, they couldn’t instantly check funds like they do now for checks so if you bounched your check there was a HUGE fee, by the RETAILER for insufficient funds. See, that that point, you have the merchandise and all they have is a worthless piece of paper. It’s no different with an EFT…if the EFT bounces, the retailer is screwed. That’s why today, the retailer gets their money regardless of the funds if the transaction clears…it’s the BANK that has been forced to give you a ‘loan’ for the overdraft funds.