Surely you could just get an account that doesn't allow an unauthorised overdraft? So if you need one, you need to actually go into the bank and talk to someone (or is this kind of account only common outside the US?)
>an account that doesn't allow an unauthorised overdraft
Is that even possible.
No account with a cheque facility could prevent you making an unauthorised overdraft. Nor indeed could it have Maestro (et al.) as balance is not normally checked when making authentications or done as part of the purchase process. So it would have to a cash only account... and then the chance of the bank making money from you must be low; meaning they'd probably have a standing charge?
It could very easily do that. Try writing a check for a million dollars - the bank won't pay it, and the same if you try using your debit card for very large amounts. Visa/Mastercard/others request authorization from the banks before they authorize payment. The banks choose not to link the authorization directly to the customers balance, thus allowing them to spend more money than they have while paying the bank a $34 fee for $4 coffee.
Banks can make money in other ways - in many parts of Europe banks don't charge overdraft fees - they just charge you a monthly fee to cover the cost of providing service. Other banks (e.g., ING Direct, Uno-e) in those same countries provide accounts without fees, and without access to a branch network. You can choose what service level you want without being screwed over by the bank.
I actually signed up for a USAA free checking account minutes ago. Fully online. Not military -- they just opened it up. They gave me the option to select an overdraft account. I chose not to. So I'll get point of sale declines if I ever were to go in the red.
Highly recommend them. Take pictures of your check with an iphone to deposit. They cover other banks' ATM fees up to $30/month, so that's pretty much eliminated as well (for me, at least).
Cheques must work differently over there. Here you get a guarantee card (usually your Maestro/cash machine card) which states the amount the bank will cover you for - retailers can then take payment up to this amount without risk of losses. If you have £20 in your account and write a cheque for £50, provided the cheque is properly endorsed with your card number and details, then the amount is credited to the retailer by your bank. This results in an unauthorised overdraft and ensuing charges.
Or are you using "checking account" as a loose term? I always assumed it meant an account one could write cheques from?
