Complaint Review: Suntrust Bank

A debit card transaction can processed in two ways: if it goes through teh debit system, it hits the account immediately and it settled at that time. If it is run through the credit card system, a pre-note is sent to the bank, and the amount of that pre-note is what the bank holds. Notice how some merchants have you sign a slip, others have you input your PIN number.... two systems!

When this type of hold is placed the bank watches for an incoming transaction which matches it and when it does, the hold drops and the account is debited. That works fine unless the incoming transaction doesn't EXACTLY match the hold. This commonly happens when the merchant doesn't process the actual amount of the final transaction. (Think restaurant tab vs. tab with tip) In order for that unmatched hold not to hang out there forever, banks drop teh holds automatically after some period of time. It can be as short as 24 hours and as long as 5 days. This is the reason that some people seem to think that their balance is bouncing up and down.

The short version is that it isn't the bank that controls when these post, it is the system that delivers the transaction to the bank. Because the consumer cannot be expected to know how the transaction will his their account, it is even more important, as others have said, to keep an accurate check register.

Irregardless of when a debit clears your account, make sure that you have kept an accurate balance by subtracting your purchase immediately. As far as you are concerned, that money is gone. If you keep an accurate check register, you should never have to pay another overdraft.

I have never had a problem with my bank. I keep very strict and accurate records, plus I balance my account once a week. No surprises for me.

In other owrds, when you swipe your check card, the amount of the purchase is not deducted from your available balance until they receive the merchant's paperwork. My credit union worked that way, but changed to the more commonly used "on-line" method. I didn't think a lot of financial institutions were doing that anymore. On-line processing "holds" the amount of the transaction usually for 24 hours, which has the effect of reducing your available balance. If the paperwork isn't received after 24 hours, your available balance increases until it is by the amount of the purchases because the 24 hour hold period is over. But it shouldn't matter. Once you present a check or a debit card to complete a purchase, you should subtract the balance and move on as if that money is gone forever.

You are almost right. Banks maintain more than one balance for an account. At the very least, they maintain a ledger balance, and an available balance. It appears that your bank presents the available balance when you check online. The pre-note from your debit card transaction lowers your available balance.

Where it gets confusing is when the pre-note turns out not to be for the actual amount of the transaction, for instance when a gas station only puts through a hold for a dollar. (common!)
It gets worse when the bank drops the hold because the actual transaction hasn't been presented yet. This causes the available balance to increase, then the debit comes in and drops it again. If you spent that balance in the meantime...

Some banks choose to give you the ledger balance when you inquire online. This is good, because it should match what you have in your check register, but causes problems to the users who don't keep track and think that money is all available.

Either way, it pays to know what balance you get when you ask online.

You are almost right. Banks maintain more than one balance for an account. At the very least, they maintain a ledger balance, and an available balance. It appears that your bank presents the available balance when you check online. The pre-note from your debit card transaction lowers your available balance.

Where it gets confusing is when the pre-note turns out not to be for the actual amount of the transaction, for instance when a gas station only puts through a hold for a dollar. (common!)
It gets worse when the bank drops the hold because the actual transaction hasn't been presented yet. This causes the available balance to increase, then the debit comes in and drops it again. If you spent that balance in the meantime...

Some banks choose to give you the ledger balance when you inquire online. This is good, because it should match what you have in your check register, but causes problems to the users who don't keep track and think that money is all available.

Either way, it pays to know what balance you get when you ask online.

You are almost right. Banks maintain more than one balance for an account. At the very least, they maintain a ledger balance, and an available balance. It appears that your bank presents the available balance when you check online. The pre-note from your debit card transaction lowers your available balance.

Where it gets confusing is when the pre-note turns out not to be for the actual amount of the transaction, for instance when a gas station only puts through a hold for a dollar. (common!)
It gets worse when the bank drops the hold because the actual transaction hasn't been presented yet. This causes the available balance to increase, then the debit comes in and drops it again. If you spent that balance in the meantime...

Some banks choose to give you the ledger balance when you inquire online. This is good, because it should match what you have in your check register, but causes problems to the users who don't keep track and think that money is all available.

Either way, it pays to know what balance you get when you ask online.

You are almost right. Banks maintain more than one balance for an account. At the very least, they maintain a ledger balance, and an available balance. It appears that your bank presents the available balance when you check online. The pre-note from your debit card transaction lowers your available balance.

Where it gets confusing is when the pre-note turns out not to be for the actual amount of the transaction, for instance when a gas station only puts through a hold for a dollar. (common!)
It gets worse when the bank drops the hold because the actual transaction hasn't been presented yet. This causes the available balance to increase, then the debit comes in and drops it again. If you spent that balance in the meantime...

Some banks choose to give you the ledger balance when you inquire online. This is good, because it should match what you have in your check register, but causes problems to the users who don't keep track and think that money is all available.

Either way, it pays to know what balance you get when you ask online.

Yes, I know all that, I watch my account. But what I am trying to say here is that they deduct the money from your available balance right away, so it's not available to you. However, if a charge comes in, and overdrafts your account because of that transaction, your are charged twice usually, an overdraft and an unavailable funds fee - How can they do this when they have not physically collected the pending transaction amount from your bank account. In reality, you still have the funds in your bank account! The money still belongs to YOU until the merchant sends in the paperwork.

I tested this theory when I first opened my credit union account. I made a small deposit to open the account. I waited until I knew my payroll direct deposit will come in. 2 days before, I payed my electric bill online with JEA, and made a check card purchase, intentionally trying to overdraw my account because the Credit Union told me they do not work the same way as the bank.

When I checked my account 2 days later, the JEA bill was posted AFTER the direct deposit, the debit was in limbo, awaiting the paperwork, and the balance in my account reflected the debit and the JEA bill subtracted from my deposit. As it should. No overdrafts, nothing.

What Wachovia would've done is post the JEA and the check card purchase BEFORE the deposit in order to collect $140.00 in fees. This is wrong, unethical, and deceitful. Plus, the credit union will post the transactions in the order they come in, not largest to smallest. I think Wachovia actually holds debig transactions longer than necessary, just so they CAN cause overdrafts.

When I transferred money from paypal into my account in Wachovia, it took no less than 4 days. With the credit union, it takes 1-1/2 days. I am certain that Wachovia intentionally holds electronic deposits hoping that it will result in overdrafts. I am a software engineer, and I work for the largest financial institution in the world, I know how easy it is to set up a program that will do just that - hold deposits if the target account is below a certain dollar amount, or if there are debits waiting to post. It's very simple, and widely used by most banks.

The money cannot be removed from your account before the merchant closes the reader at the end of the day. PENDING transactions are subtracted on paper from your available balance, but the money is still there. The money will never be debited until the bank gets a "close" from the merchant's processor.

What screws up most people is merchants who close out once/week. Alot of them do this. It costs money to close the reader every night.

Also, look online at your account. The available balance changes from day to day, depending on whether the merchant closed out or not. I've seen pending transactions disappear(they do that at midnight whether the merchant closes out or not), and then reappear a few days later as an actual debit.

During those few days, a lot of havoc can be wrought without a register to record each transaction.

Up until last week, I banked with Wachovia, now I bank with a credit union. But, every time I used my check card, it was deducted from my balance. It clearly showed online that it was taken away from my AVAILABLE balance. The credit union does the same thing. I can go get gas using the check card, NOT debit, and come home, and that amount is already deducted from my balance.

"i kept track of every transaction and only spent what i had in my account. the money was in the bank at the time i used my debit card, it was autimatically deducted that same day."

It doesn't happen that way...ever. The transaction would show up as PENDING, the same day, but would not be deducted from your account until after the merchant closed his card reader. Most merchants do this daily, when they close the store. Those transactions will be deducted the following day, at the earliest. If a merchant closes his reader out every few days(trying to save the $.35 fee), you will not have those funds deducted during that time. Either way, the funds are not pulled from your account the same day you use your card.

Try using a check register, and entering every transaction you make. Those of us who do this one simple maneuver, never pay any fees.

Please clarify your post- I'm not sure I understand.

If I understand this correctly, you withdrew money from your account. After this, some pending transactions hit your account causing it to overdraft and resulted in fees, right?

If I am correct then that means you knew these transactions were coming (because you wrote the checks or used the card to purchase something) but didn't leave enough money in your account to cover them after your withdrawl.

You said you use online services with your account, so you can see what transactions have or have not processed. Even if they were maintenence fees, you should have known they were coming.

I'm not seeing how the bank is at fault here or how it is a rip-off since it is obviously not the bank's job to manage your spending.

Do I have it wrong? I hope so. I use SunTrust and I would really like to know if they are involved in dishonest practices. There are too many banks out there that want my business for me to deal with a dishonest one. Thanks.

SunTrust processes the transactions from highest to lowest. By doing this they are hoping to deplete the money in your account so that they can charge us UAF or NSF fees. SunTrust claims" When we process all transactions presented for a business day, those items are applied to the account together and processed in order from highest to lowest, ensuring payment of the more critical outstanding transaction."

I suggest you complain to them and continue to complain to them until you get results. You can send them e-mails by logging on to your account and selectiong the message option. It would be a good idea for you to call them and explain the charges to you. I also suggest the you file a complaint with the Federal Reserve. If you have proof that the money was in your account to cover the thing(s) you charged with your card SunTrust will have no choice but to refund the money. Don't let them give you any crap about using a ledger or offer overdraft protection. Stick to your guns and do not accept no for an answer.