Chase has no plans to make credit/debit ordering more reasonable
Chase has been highly criticized for its practice of posting large transactions first at the end of the day, thus making it more likely that smaller transactions will cause more overdrafts and Chase can charge more overdraft fees.
Chase has defended this practice claiming that this is what customers want, as it insures that big important payments will be paid. Consumer groups widely dispute that this is really what consumers want.
Recently, Wells Fargo was ordered by a judge to pay $200 million to customers for overdrafts generated by this exact scheme.
Chase’s response to the judgment is to claim that they have no intent of changing the way they apply debits.
To be fair, it isn’t just Chase that does this; it seems to be common at large banks and BofA, Wells Fargo (as mentioned above) and Citibank all do this.
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By coakl, January 11, 2011 @ 6:25 pm
Chase is doing it both ways:
Debit card charges are processed in the order that they’re initiated.
Paper checks and pre-authorized ACH withdrawals (i.e. auto-pay of your life insurance, city utilities) are done in order of the amount, with the biggest ones processed first.