Some UK banks are charging up to 800000% on overdrafts

[SamuelRSmith]

kowenicki said:

SamuelRSmith said:

kowenicki said:
can we just clarify

In the UK:

Most banks have a free overdraft "buffer zone'

Authorised Over drafts are not at ridiculous interest rates

Credit Unions exist in the UK

Banking in the UK is free if you remain in credit, No banking fees. No ATM fees (unless you use one of those shitty ones you find in Motorway service stations). No debit card fees.

If you write a cheque that talks you overdrawn and the cheque is honoured then you only get charged by your own bank.

If you end up with an extortionate rate for going over your buffer zone.. tough.

Unfortunately, these costs are usually passed on to retailers. Which is why some businesses charge you for using your card/make you buy a minimum amount.  In the USA they outlawed this... which resulted in banks trying to charge for debit card accounts, consumers (obviously) kicked off, so the banks withdrew on this policy... but they're gonna have to cover this cost somewhere.

I know this post has little to do with your original post, it's just that a lot of people kick off about debit card charges in shops, etc.

I have seen some retailers (very few - usually smaller independents) adding a fee for credit card use, but never debit card use?

I get thrown a debit card surcharge a lot, I'm not a credit card owner. More often, though, it comes as a minimum order (where the profit is more than enough to cover the handling costs) - which hits lowly students like I. Even places like Clinton Cards have a minimum order. I get hit with surcharges in those happy-shopper convience-type stores.