curio

money

Why a bank paying your biggest bill first can cost more fees

Say you have $100 when three $10 lunch payments and a $95 bill arrive. Each payment that takes you below zero costs an overdraft fee.

Pay the lunches first, and only the bill overdraws: one fee. Pay the bill first, and each lunch overdraws: three fees.

Big US banks often did this, saying it keeps big bills like rent from being refused.

Source: en.wikipedia.org

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