A Point of Sale Charge refers to:
- Debit Card Purchase
- Potentially Unauthorized Charge
The term POS on your bank statements for online transaction usually refers to a purchase you made with your debit card. That label refer to the amount you paid a merchant, or it may indicate that you were charged additional fees for using your card.
POS Charges
It probably refers to a purchase you made in-person at a retailer. There are three types of charges that can be imposed. They are discussed in detail below:
Debit Card Purchase
Charges that show up with “POS” are typically a result of using your debit card. Online purchases and in-person transactions can both result in POS appearing on your statement.
Unauthorized Charges?
If you see charges that you don’t recognize, research the transaction as soon as possible. POS charges mean that somebody bought something using your card, and they are typically not automatic recurring bills.
Fraud in your Account: If somebody used your card without your permission, you have the right to get those charges reversed. Contact your bank within two days of discovering any suspicious charges.
Credit Cards are Safer: For everyday spending and online shopping, a credit card is safer than a debit card.
Debit cards have direct access to your checking account, so fraud and mistakes can instantly drain your account. Credit cards have a grace period, which allows you to pay for charges up to one month later.
Additional POS Fees
A POS charge can also be an additional fee that your bank charges when you use your debit card. Not all banks charge POS service fees. If your bank charges fees, you have several options:
1. Use a different bank. It’s increasingly rare for banks to charge these types of fees, so there’s a good chance you can find another bank that costs less.
2. Choose “Credit” instead. Banks earn less income when you choose “Debit” at checkout, so some try to make up for it by adding a fee. The fee may be minor, but it gives you a nudge to choose “Credit” next time.