Quick question about overdrafts and stuff

Former Member

Right, I'm basically 5p over my overdraft limit.

Basically, I don't get paid until a week on Friday. See if I order something online, will it still accept it?

I only ask, because banks are always on about what happens if you go over your limit, and I don't really see how that works if it doesn't let you over your limit. If you see what I mean.

Or does it just vary from card to card?

Cheers.

Former Member

it depends.

all shops have something called a floor limit, which is the amount you can spend on your card without them checking with your bank. in somewhere like Woolies it's usually about £5, whereas somewhere like a car showroom it's much higher.

if the thing you order is cheaper than the floor limit of the shop, they won't check with your bank and the transaction will be accepted.

but if it's over the limit, they'll dial your bank, and it'll most probably be refused.

Former Member

Are you talking overdrafts or store cards? If you are overdrawn your bank will start charging you either a daily rate or a monthly charge for the time that you are overdrawn. For example My bank used to charge £3.50 for each day i was overdrawn (beyond the allowed limit) plus a £20 fee for the letter they had to send me to tell me I was overdrawn. I was also unable to use my card in shops, the only way to get round it is to write a chequ and hope it doesn't bounce.