USAA has no overdraft protection for the ATM/checking card!
I have complained several times and even had voice contact with them.
The lame excuse is that's just the way it is with their card carrier.
The fact that you have several accounts connected and designated for this purpose, only serves USAA accounts you owe! How convenient for them and dam embarrassing for us!
I have been with USAA for 39 years. Have checking and savings account for our son (which we are also on). He made gas purchase Friday night and then tried to make purchase at restaurant and was declined. I had told him money was in account, but I had mistakenly put it in savings account. Checking had enough to cover gas but not $10 at restaurant. Don't understand why overdraft protection did not work (tied to USAA Master Card). This is second time this has happened and USAA did not know why. So Friday night I transferred funds to his checking account (and confirmed funds were in there that night) and called Saturday and asked to have overdraft protection set to come from savings first, Master Card second (hoping to never have to use it). Asked why card was declined and was told because he made gas purchase and it put a hold for a larger amount. Didn't make sense, but went with it. Looked at account today and there is a $100 charge in process for overdraft fee charged to my Master Card. This charge occurred on Saturday (not when we needed the funds on Friday). So I call and I am told that the overdraft only works when the payment is a check or a automated payment that is already set up. Does not work on a card transaction. Well, why would I want that in the first place? My son never writes checks or makes automated payments! That is not how it was explained to me when setting up overdraft protection. I said I didn't want him to ever be stranded with no money. So now they can't explain why $100 charge for overdraft is on there for Saturday and they can't see it yet. Also said it would kick in for a gas payment. Okay - which is it? Select payments or "checks and automated payments only"??? No one seems to know the answer to this question! Never heard of such a thing and we are not in the habit of having nonsufficient funds.
We truly appreciate your 39 years of membership. We would like to get more information about what happened and make sure something like this doesn't happen again. We ask that you please click here to provide us with additional details including your member number. Thank you.
It sounds to me like the person you spoke to at USAA is new and very uninformed. OD protection should work on most any purchase including debit\ATM cards. The problem to me sounds like the gas station put a $100 hold on the card, this is VERY common and depends on the gas station. OD protection for most banks only covers a certain amount, for instance $50. So in this instance, the gas he got technically cost $100 and that put him well over any sort of OD protection and hence killed his ability to buy dinner. My suggestion is to figure out which gas stations charge what amounts...locally I LOVE our Shell stations, they ONLY hold $1 and it takes 2-3 days to clear, I've gotten $30-50 worth of gas a day before payday MANY times in the last few years when I had much less in my account as all Shell looks for is $1. I cannot speak for where you are but like I said, all companies are different, a $100 hold is on the high side though, $50-60 seems to be the norm. When you spoke to someone at USAA....they SHOULD have been able to explain this or at the very least clearly explain the limits of OD protection and clarify why that $100 transaction blocked your sons ability to buy dinner. As for it showing up Saturday morning, thats just a timing issue, the gas purchase was made on a friday evening so I am not surprised the actual transaction didnt show up until Saturday, wouldnt have been surprised if it changed to the following Monday even, this all depends on how the gas station processes their transactions AND\OR how their bank does the same.
Calion is CORRECT!
1. From the USAA Overdraft Protection FAQ found here.
2. IMPORTANT: USAA Checking Accounts do NOT have "automatic" Overdraft Protection. You must "activate" this free overdraft protection by clicking here first.
3. Found the following FOOTNOTE at the BOTTOM of the Secure Checking Accounts information webpage found here.
Hope this helps.