The confusion stems from the fact that there are two different services for Chase, one for check writing and one for debit cards. I am specifically talking about debit card usage and will edit my post to make it more clear.
Chase will charge you $10 per day for check writing overdraft protection on accounts that are linked, this is true. However for debit card use, you would be charge $0 if you opt-out and indeed pay $34 per transaction if you opt-in. The problem is that many banks combine checking and debit card usage in to one plan, and others like Chase split it up. My main point is that check writing is becoming very rare, and most people get dinged from fees using their debit cards. So if they are combined and you really don’t write checks, then you definitely should opt-out.
There is $34 fee for debit card overdraft protection and $0 fee for opting out(here and here). Does this resolve your disagreement?
(The moral of the story: don’t be overdrawn. It will cost you money in fees with or without overdraft protection.)
If you opt-out of debit card overdraft protection it will not cost you any money! If you opt-in for debit card overdraft protection it will cost you money. I know it sounds ridiculous, because it is.
Based on the links, Chase doens’t even call their service for debit cards “overdraft protection,” so this doesn’t support the original point about words misleading people. Also, it seems that if you have debit card coverage and overdraft protection, you’ll at most be changed $10/day for overdrawing with your debit card. Still better to use a credit card when you don’t have money in your checking account, obviously.
(Also, as Louie Helm recently pointed out, as long as you pay your balance in full every month, you’re better off using your credit card for everything because the rewards program will reduce the cost of everything you buy by 1% or more.)
Chase doens’t even call their service for debit cards “overdraft protection,” so this doesn’t support the original point about words misleading people
In the spirit of being helpful and trying to be as factually accurate as possible, I have edited my original post, as you are absolutely are correct about the terminology. I would only argue that I consider my original point to be merely a segway to introduce my main argument that debit card overdraft services are typically poor decisions.
Also, it seems that if you have debit card coverage and overdraft protection, you’ll at most be changed $10/day for overdrawing with your debit card.
I do not believe this is accurate.
However assume it is accurate, if you weigh the cost/benefit (again talking about debit card use) it IMO is still a terrible investment. My bank happens to be Wells Fargo and they charge $12, for debit OD service, better, but still pretty bad. But ultimately you must decide what is an acceptable fee. The vast majority of people getting dinged for debit card overdrafts, are not buying life saving medication, its more likely to be a cup of coffee or a hot dog. So if you asked them what they would have done if they knew they had insufficient funds, they would likely reject the $10 or $34 fee. This isn’t even considering that most banks are not obligated to tell you that you are overdrawn, so you could get dinged $10 a day until you finally realize it, as opposed to being notified right away from being declined. BTW since you’re a Chase customer Chase happens to waive the fee if you can fund your account by day end, but they aren’t obligated to inform you that you are negative.
you’re better off using your credit card
You’re better off using your credit card and saying no to debit card overdraft service – for the most part. Unless you frequently find yourself in the position of having your purchases must go though for what ever reason.
The confusion stems from the fact that there are two different services for Chase, one for check writing and one for debit cards. I am specifically talking about debit card usage and will edit my post to make it more clear.
Chase will charge you $10 per day for check writing overdraft protection on accounts that are linked, this is true. However for debit card use, you would be charge $0 if you opt-out and indeed pay $34 per transaction if you opt-in. The problem is that many banks combine checking and debit card usage in to one plan, and others like Chase split it up. My main point is that check writing is becoming very rare, and most people get dinged from fees using their debit cards. So if they are combined and you really don’t write checks, then you definitely should opt-out.
There is $34 fee for debit card overdraft protection and $0 fee for opting out(here and here). Does this resolve your disagreement?
If you opt-out of debit card overdraft protection it will not cost you any money! If you opt-in for debit card overdraft protection it will cost you money. I know it sounds ridiculous, because it is.
Based on the links, Chase doens’t even call their service for debit cards “overdraft protection,” so this doesn’t support the original point about words misleading people. Also, it seems that if you have debit card coverage and overdraft protection, you’ll at most be changed $10/day for overdrawing with your debit card. Still better to use a credit card when you don’t have money in your checking account, obviously.
(Also, as Louie Helm recently pointed out, as long as you pay your balance in full every month, you’re better off using your credit card for everything because the rewards program will reduce the cost of everything you buy by 1% or more.)
In the spirit of being helpful and trying to be as factually accurate as possible, I have edited my original post, as you are absolutely are correct about the terminology. I would only argue that I consider my original point to be merely a segway to introduce my main argument that debit card overdraft services are typically poor decisions.
I do not believe this is accurate.
However assume it is accurate, if you weigh the cost/benefit (again talking about debit card use) it IMO is still a terrible investment. My bank happens to be Wells Fargo and they charge $12, for debit OD service, better, but still pretty bad. But ultimately you must decide what is an acceptable fee. The vast majority of people getting dinged for debit card overdrafts, are not buying life saving medication, its more likely to be a cup of coffee or a hot dog. So if you asked them what they would have done if they knew they had insufficient funds, they would likely reject the $10 or $34 fee. This isn’t even considering that most banks are not obligated to tell you that you are overdrawn, so you could get dinged $10 a day until you finally realize it, as opposed to being notified right away from being declined. BTW since you’re a Chase customer Chase happens to waive the fee if you can fund your account by day end, but they aren’t obligated to inform you that you are negative.
You’re better off using your credit card and saying no to debit card overdraft service – for the most part. Unless you frequently find yourself in the position of having your purchases must go though for what ever reason.