Debit card batching

By Adam Hooper - bio | email

LAKE CHARLES, LA (KPLC) - Every time you swipe your debit card money comes out of your bank account, but in some cases more than you expect.

"Hotels and car rental companies will tack on a deposit, anywhere from $10 to $100, and possibly even $300. This is in addition to the rate and taxes that you're going to pay anyway," said Brandi Segura with MainStreet Financial.

It is called batching, and could end up costing you more than expected. You get the money back, but that could take weeks. In the meantime, the holiday costs could put your bank account in the red. Brandi Segura with MainStreet Financial said one tactic for avoiding the added charges, is not using your debit card to make the reservation.

"Credit cards are good for travel expenses, because you're not tying up the funds that you might use on a day-to-day basis. That low interest rate may cost you less in the long run, rather than paying each transaction fee that you make on your account," said Segura.

If you are planning a vacation this summer, with hotels, and rental cars, and you want those expensive holds to be kept off your personal checking account, a good way to do this is by signing up for a prepaid debit card.

"It's one thing that's very safe when you're traveling. You are not using money directly linked to your financial institutions. You have a set amount, so you are budgeting yourself, first of all, and you can get those funds replaced if it is stolen," said Segura.

Click here for a link to MainStreet Financial.

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