Key Bank USA Informative - Key Bank allows debit card purchases when no funds available
TOLEDO, OHIO -- After making a deposit into my Key Bank checking account today, I realized my account was $168.00 in the negative. I thought this was odd since I had just used my debit card over the weekend with no problem. Upon further investigation, I was told by a Key Bank CSR that as a "convenience" to their customers, they will pay for purchases made with the debit card, even when funds are not available. That being said, I wanted to know at what cost? The end result was 6 debit purchases paid by Key for a total of $108 and 6 overdraft fees of $30 each for a total of $180. This averages to about 110% interest. I'm not math scholar, but I don't feel "convenienced" at this point. Beware to Key customers who hold the Key Master Money debit card. I don't understand how, but this is an automatic feature. If you don't want to be able to make purchases when you're overdrawn, you have to request it.
Don't get me wrong, I obviously made a mistake and caused myself to be overdrawn. But I am the customer and Key Bank, who should be watching out for their customers best interest, sees the opportunity to make a buck and pounces on it. You may recall a couple of years ago, Key sent pamphlets out with your monthly statment offering you something like $5 if you tell the cashier at the point of sale that you were using a credit card rather than a debit card. Like a fool I've been doing it every opportunity I could. From now on when you're asked at the point of sale whether your card is a debit or credit card, tell them it's a debit card. This way Key Bank can no longer take a cut of the sale from the merchant that you're purchasing from.