MSE News: Financial inclusion fears as Barclays ups basic bank account fees

ChiefGrasscutter

rinabean wrote: »

How can it be theft to go into an unauthorised overdraft? They give it to you willingly. It's not like you robbed the bank.

Because the bank has no way of knowing whether you have written cheques for more than is in your account before they arrive at the bank.
Likewise while some card transactions are done 'online' contacting the bank real time, others are done offline with no check at the bank done so again the bank will not know until the data is passed to it - might be a day or so later.
So the bank has no chance to say "no way". If it refuses to pay a day or so later we are now in a real mess as the receiver of the funds due will not get paid, but they may already have handed over the purchases. So how does the providor of the goods get their money or the goods back? It would mean that no one would EVER release goods on say the high street until payment had been fully cleared. The whole system relies on the seller knowing that they will get paid from a legit transaction - because the seller knows the bank will pay them regardless and if there ain't the money in the customers account the bank knows the address etc of the customer and can pursue the customer for the money - the shop has no chance.