When I use my debit card the bank immediately puts a hold on the account even though the actual charge does not hit the account until days later. Can the bank do this?
Debit cards are processed through the VISA network. At the time of use, the bank is notified electronically of the amount. Most banks will place a hold on these funds until the merchant presents the item. Until the bank receives the actual ticket, your account will have a current ledger balance and a smaller available balance. The current ledger balance will exceed the available balance until the merchant presents the item to the bank. Should an item be presented on your account that makes the available balance negative, the bank may charge a fee to return the item or overdraw. The disclosure agreement will explain the method of posting debit card transactions.
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