Certain debit card transactions require a hold placed against your funds. This "pre-authorization" is a means of ensuring payment to the merchant. Pre-authorization holds for gas purchases can be more or less than the amount actually pumped based on whether you use your debit card with a PIN or signature.
It is always best to deduct the amount of your purchase from your available balance to avoid incurring overdrafts and fees. In some cases, merchants, such as hotels, airlines, and rental car companies send through pre-authorizations based on estimates of what they think you will spend. Many times you will not know the pre-authorization hold amount that has been placed on your available balance. When using your debit card for these types of charges, always check to see what your available balance is.
If you have overdraft protection, available funds in your savings account will be used when pre-authorizing transactions are over the amount of your checking account balance.
However, the hold for this pre-authorization will only apply to your checking balance, not your savings. When the transaction posts, the funds from your savings will be transferred over to the checking and no fee will be assessed. If the funds in the savings are withdrawn before the transaction posts, and there are not enough funds in the checking account to cover the transaction amount, a non-sufficient funds (NSF) fee could occur.
Maintaining a debit card:
Be careful when using your debit card over the internet or authorizing payments over the phone. Never give out your PIN number.Make sure you understand the terms, anytime you authorize your debit card to be used for recurring debits.Your debit card is an access device to your account, so always know where your card is. Never keep your PIN with your card.
As a security measure, your debit card has daily limits for pre-authorizations and ATM cash.You can use your debit card to make deposits through our ATM machines. Funds may not be available immediately for withdrawal.
Review your Debit Card Disclosure to understand your rights and liabilities for unauthorized use of your card.
Suggestions on managing your money:
As a teen, you’re beginning to make some grown-up decisions about how to save and spend money. Having a debit card, gives you easier access to your checking account. Learning the right ways to manage your money from the start is important.
Save some money before you’re tempted to spend it. Put your spare change to use by collecting loose coins in a jar and eventually depositing them into a savings account. Save part of your allowance or cash gifts from relatives.
Keep track of your spending. Budget your money or develop a spending plan by deciding on a maximum amount you will spend each week or month.
Consider a part-time or summer job. Whether it’s babysitting, mowing lawns, or a job in a "real" business, working outside the home can provide you with income, new skills and references that can be useful after high school or college.
Think before you buy. Before making a purchase, ask yourself if you really need or just want the item. Can you truly afford the purchase without having to cut back on spending for something else?
Be careful with your debit card. Don’t allow others to use your card or let them know your PIN. Always know where your card is.
Protect yourself from crooks that target teens. Do not give out personal information such as your name, address, social security number, and date of birth. Criminals can use this information to steal your identity and open accounts or credit cards in your name. Be very suspicious of requests for information that can come by phone, email, text message or in the mail.
Be smart about college. Consider the costs when you search for a school. Learn what your options are for saving money for college tuition, books and housing.
