Debit Cards - overdraft?

CREATIVE!11 · 7 Sep 2013 at 23:01

not sure how to title thread but I'm a little confused and have quick few questions I need cleared up looked on NatWest website and it's all just trying to get you to get an overdraft....

What I'm wondering is this,

I have 2 bank accounts, one of them is a select NatWest account and it's one I pay all my bills out of and I keep it DELIBERATELY empty aside what needs to go out of the account (It's my main card I use all over the place online etc it's a visa debit). I've no idea if this account can go overdrawn or not?

so for example say I'm a victim of card fraud on this account and it has 20 quid in.
Can only 20 quid be nicked and other payments will be refused because not enough money in my account? or will the blasted account just go overdrawn and lump me with hundreds of quid missing because I don't have some stupid "overdraft limit" basically I just don't want anything to do with an overdraft.

Also how do NatWest deal with card fraud on a debit card if it occurs? anyone chime in?

[FnG]magnolia · 7 Sep 2013 at 23:03

Speak to your bank and they will tell you this in great amounts of detail.

e : I'm being serious. Banks have a huge DOC to explain exactly these things.

UnworthyBean · 7 Sep 2013 at 23:38

[FnG]magnolia;24904485 said:
Speak to your bank and they will tell you this in great amounts of detail.

e : I'm being serious. Banks have a huge DOC to explain exactly these things.

I'd say this really.

Or to take a rough guess, Your account can probably go overdrawn. Its one of the ways banks can make money, You go overdrawn and they slap on a charge.

The_Abyss · 8 Sep 2013 at 00:57

My fiancee and I keep a separate joint 'bills' account. We both standing order into it every month, and every month nothing but bills (direct debits and a couple of standing orders come out). We overpay our mortgage quite heavily, so this account has a reasonably high turnover.

The account provider (Nationwide - not the main bank for either of us, but our current mortgage provider) had no issues in giving us an overdraft limit equivalent to two months of the account's outgoings. I wanted at least one month in case of failed payments going in to it.

The Geezer · 8 Sep 2013 at 02:36

With Natwest you can set your overdraft to nil, ring them tell them the account details and request 'no overdraft' on that account - simples

Energize · 8 Sep 2013 at 04:55

Who cares if it can go overdrawn, you aren't liable for it.

[FnG]magnolia · 8 Sep 2013 at 05:57

^ Reasons why internet advice from financially unaware strangers is terrible.

Energize · 8 Sep 2013 at 06:18

^ Reason why the internet is terrible.

[FnG]magnolia · 8 Sep 2013 at 06:29

You gave the wrong advice.

Energize · 8 Sep 2013 at 06:34

I didn't give any advice, and it's such common knowledge that I'm not going to argue it as everyone reading this thread is aware of the fact.

[FnG]magnolia · 8 Sep 2013 at 06:36

Energize said:
Who cares if it can go overdrawn, you aren't liable for it.

One of the problems is that you are wrong.

Destination · 8 Sep 2013 at 07:05

Indeed, you are incorrect, with a debit card under rbs, natwest, ulster bank, you are liable for the fraud until it is reported as fraud, after it has been reported you are not liable. With the credit card scheme, you are only liable for the first fifty pounds until it is reported as fraud, or again nothing if it has been reported.

This was my understanding from a meeting a few weeks ago. It is possible the OP is in a different situation with the same banking group, and as Mags states (he works for a bank iirc) they tend to have entire documents on the processes, so you will get the best advice by asking your own bank about your own accounts directly.

-edit, there also exists differences in regards which method the fraud occurred through, visa debit being less liable than switch etc, if the fraud ocurred online, versus a card theft and cash machine withdrawals

MrMoonX · 8 Sep 2013 at 07:43

Hikari Kisugi said:
Indeed, you are incorrect, with a debit card under rbs, natwest, ulster bank, you are liable for the fraud until it is reported as fraud, after it has been reported you are not liable. With the credit card scheme, you are only liable for the first fifty pounds until it is reported as fraud, or again nothing if it has been reported.

This was my understanding from a meeting a few weeks ago. It is possible the OP is in a different situation with the same banking group, and as Mags states (he works for a bank iirc) they tend to have entire documents on the processes, so you will get the best advice by asking your own bank about your own accounts directly.

-edit, there also exists differences in regards which method the fraud occurred through, visa debit being less liable than switch etc, if the fraud ocurred online, versus a card theft and cash machine withdrawals

This is wrong I had like £40 of fraud on my NatWest and I didn't have to pay anything and I was liable for precisely nothing. The account holders never liable for fraud unless they are stupid and wrote down pin with card for example

Destination · 8 Sep 2013 at 07:50

MrMoonX said:
This is wrong I had like £40 of fraud on my NatWest and I didn't have to pay anything and I was liable for precisely nothing. The account holders never liable for fraud unless they are stupid and wrote down pin with card for example

Interesting, was this online fraud? Or was your card stolen/cloned or what?

Was it a switch or a visa debit?

CREATIVE!11 · 8 Sep 2013 at 12:12

Hikari Kisugi said:
Interesting, was this online fraud? Or was your card stolen/cloned or what?

Was it a switch or a visa debit?

This.

M1k3H · 8 Sep 2013 at 14:03

http://www.theukcardsassociation.org.uk/individual/fraud-prevention.asp

Found this.

It looks like if you get your money stolen via fraud, you are not liable for it (unless you acted "fraudulently or without reasonable care").

As far as the overdraft is concerned, mine was set at nill by default, I requested for overdraft at the time cause my credit rating was low as it was my first ever job.

Be careful though because some banks might not default to zero and let you overdraw and charge money for it.