Going overdrawn, Coop Cashminder

MicheH

I now have a Coop Cashminder account. I'm going to do everything in my power to ensure that it does not go overdrawn so some advice on how the debit card works etc would be great.

If DH's salary goes in at the end of the month and all our direct debits and standing orders come out on the first we know that everything will be paid no problem. From then on we have a little amount that will be left plus child benefit and tax credits go in at different times in the month.

So the only way of going over drawn really is using my card at a store or online when there isn't enough money to cover it or using my card a couple of times in one day when I think I have enough money to cover both transactions but only enough for one transaction and that will cause me to go OD. HAve I got that right?

Also if i'm only going to use the debit card once in the day and try to pay for something but don't have enough money in the account will the payment not be accepted there and then.

I'm annoyed (again!) that I have to ask you guys this and not helped by the bank as how not to go overdrawn. They told me it costs them money if I go OD (even though I'm not allowed to) thats why the 3 strikes and you're out policy but surely they should not allow anyone to go OD in the first place, after all that's what I though a basic account was all about.

peppa-pig

For example, if you have £20 on Monday in your account and you spend £10 on your card this transaction will go through and be authorised in the shop as there is enough money in the account. If then on Tuesday you have a DD coming out of your account for £20 this will also go through as there is still £20 in the bank, but then when the card payment you made on Monday actually comes out of your account you will go overdrawn as there is not enough money in the account but the coop have to honour the payment as at the time you made the transaction there was enough money in the account. This would be counted as a strike against you (the Coop operate a 3 strikes and you are out policy).

Debit card transactions are only accepted instore or online if there is enough money in the account at the time the purchase is made. Therefore if you try to use your card and there is not enough money for that purchase at the time you are trying to make that purchase it will be declined and you will be asked by the shop to pay by another means.

Declined card transactions are not counted as a strike against you.

The best thing you can do is either keep a book where you have all ingoings/outgoings detailed with a running total or a spreadsheet where you can log everything you do. This way you can keep track of exactly how much you have as the online banking and ATM statements are accurate and uptodate.

Hope that makes sense.

MicheH

Thank you! It makes perfect sense. I can see me resorting to paying with cash till I get the hang of it and try to save a 'buffer'.

Tinytim

peppa-pig wrote: »

The best thing you can do is either keep a book where you have all ingoings/outgoings detailed with a running total or a spreadsheet where you can log everything you do. This way you can keep track of exactly how much you have as the online banking and ATM statements are accurate and uptodate.

Hope that makes sense.

This really is good advice. It doesn't have to be anything complicated - no more than a page in a pocket diary where you keep a running total. That way, regardless of what the online banking, ATM etc say, you will know exactly how much is there.

Personally I have a simple tick sheet where I tick of each direct debit as it comes out each month, and have a very easy way of seeing which are still to come out. That way I can work out what is left and transfer this to a piece of paper which I keep in my wallet. I then simply reduce this everytime I spend something.

peppa-pig

I have an excel spreadsheet where i track everything and predict future transactions/spending/budget. I also check everything against my online statement everyday so i know if the amounts going in and out are correct.

I have to admint I am rather obsessed with it :rolleyes::rotfl:

Tinytim

peppa-pig wrote: »

I have to admint I am rather obsessed with it :rolleyes::rotfl:

I think that is a natural reaction when you have spent so long feeling you don't have any control over your finances I am the same, now that I have control I want to make absolutely sure I keep control

antarctica

I am also obsessed with my finances and my spreadsheet

ultimately this can only be a good thing.

miss_spooky

Hi,

The thing to remember with Co Op debit card is that card transactions [EMAIL="AREn@T"]AREN'T[/EMAIL] deducted from your balance as your card is used. i.e acct bal & avail bal will always be the same. What I do is keep receipts next to comp the chuck them as they show online. Alt most cash points will give a true bal.

I'm also waiting to see what will happen this mth as my dla & cb went in Tues then I drew it out to go shopping with. But my closding statement has the money coming out closing as od, then next state shows money going in - all on same day?

Shao_Kahn

peppa-pig wrote: »

For example, if you have £20 on Monday in your account and you spend £10 on your card this transaction will go through and be authorised in the shop as there is enough money in the account. If then on Tuesday you have a DD coming out of your account for £20 this will also go through as there is still £20 in the bank, but then when the card payment you made on Monday actually comes out of your account you will go overdrawn as there is not enough money in the account but the coop have to honour the payment as at the time you made the transaction there was enough money in the account. This would be counted as a strike against you (the Coop operate a 3 strikes and you are out policy).

Debit card transactions are only accepted instore or online if there is enough money in the account at the time the purchase is made. Therefore if you try to use your card and there is not enough money for that purchase at the time you are trying to make that purchase it will be declined and you will be asked by the shop to pay by another means.

Declined card transactions are not counted as a strike against you.

The best thing you can do is either keep a book where you have all ingoings/outgoings detailed with a running total or a spreadsheet where you can log everything you do. This way you can keep track of exactly how much you have as the online banking and ATM statements are accurate and uptodate.

Hope that makes sense.

I have a Cashminder Account (I went BR in March). I was wondering with regard to this "three strikes" policy, do they inform you of each "strike"? Also, when I opened the account they did not mention this policy on the phone and from looking at the T&C sent to meby them after opening it I cannot find any reference to this? It is a Cashminder account with the Visa Electron facility.

I unfortunately got a letter from them with a ticking off and a "budget-planner" sheet a few months ago due to it going in the red for some reason (can't remember why but think it was due to a DD mistake, as the company claiming it had asked for it on the wrong date), but since then, from looking at the online banking, I have been technically overdrawn (it says "DR") quite a few times on certain days but back in credit again the same day (due to money going in on that day). Are these counted as "strikes"? As they have not written to me about them at all and everything with the account seems fully-operational as usual.

Any insight on this would be appreciated. Thanks.

miss_spooky

Shao_Kahn wrote: »

I have a Cashminder Account (I went BR in March). I was wondering with regard to this "three strikes" policy, do they inform you of each "strike"? Also, when I opened the account they did not mention this policy on the phone and from looking at the T&C sent to meby them after opening it I cannot find any reference to this? It is a Cashminder account with the Visa Electron facility.

I unfortunately got a letter from them with a ticking off and a "budget-planner" sheet a few months ago due to it going in the red for some reason (can't remember why but think it was due to a DD mistake, as the company claiming it had asked for it on the wrong date), but since then, from looking at the online banking, I have been technically overdrawn (it says "DR") quite a few times on certain days but back in credit again the same day (due to money going in on that day). Are these counted as "strikes"? As they have not written to me about them at all and everything with the account seems fully-operational as usual.

Any insight on this would be appreciated. Thanks.

This is what I was wondering about, as it seems that they roll out the debits first then the credits so it looks like you were DR but really you couldn't get money out unless there was money in there? IYKWIM.

peppa-pig

i think if u get a letter u can count that as a strike.