Can a charge go through my bank account even if I don’t have sufficient funds available?
Unfortunately, yes. In most cases, if a check or ACH charge hits your account and you don’t have the funds available, the bank will let it through. But if you don’t deposit the funds to cover it within a day or two (depends on the bank’s policies) they will send the item back and charge you an overdraft fee. The person who tried the charge will probably also charge you a returned item fee as well. It’s just not a happy situation.
Can I cash a check against my friend’s account?
Several banks will allow you to sign over your paycheck to your friend to be cashed against his or her when both of you are present, both of you can provide acceptable ID, and there is enough money in your friend’s bank account to “cover” the check. In the case that the check bounces, your friend will be responsible.
Can my bank account go overdrawn if there is a temporary hold on my account?
Whenever you use a debit card or credit card for the first time with a new company who will be charging you on a regular basis, there is a temporary hold placed on your account, just to make sure you have funds in that account. In some cases, the hold can be $1 and in other cases much more. If other items come through your account while you have a temporary hold pending that cause your account to appear overdrawn, this is not a cause for worry. While your account may appear overdrawn in the pending area, when the legitimate charges come through they will be posted while your temporary hold will still stay up in the pending area until it finally drops off. Since your account should still show a positive balance in the posted area, there is no reason why a bank should charge you an overdraft fee in this situation. While this is the practice of most banks, bank policies often differ, so you should definitely call and talk to your own bank to find out it a temporary hold could cause overdraft fees.
Can I cash a check at the issuing bank without having an account with them?
You may have found yourself in a situation where you need to cash a check but you cannot wait a couple of days for it to clear at your bank. As long as you go to the bank that issued the check, whether it be a payroll check or payment from another company, and show acceptable ID confirming that you are the person it is written to, you should be able to cash it on the spot without having to open an account at that bank. This is because the payer’s bank should be able to look up their account to make sure there is enough to cover the check and withdraw the money immediately. There is little risk.
And finally, here’s a random question that you may have wondered about your credit or debit card:
Do all Visa credit card numbers start with the number 4 ?
Yes, every VISA credit card has a 16 digit number that begins with the number 4. All Mastercards start with the number 5. It is highly unlikely that VISA will ever run out of combinations that start with the number 4, even though it seems possible considering the way Americans are using credit cards these days!