Nordstrom Debit Cards Come With Unexpected Fees

Store debit cards from popular retailers such as Nordstrom and Disney are the subject of a new class action lawsuit investigation.

The store debit card investigation is looking into allegations that stores like Nordstrom use unfair and deceptive practices by charging customers returned payment fees, which are similar to overdraft fees.

For many consumers who shop regularly at a store like Nordstrom, Nordstrom debit cards may seems like a great idea.

But those consumers may be surprised to discover returned payment fees charged to their accounts when they were certain they had enough funds to cover the transaction.

In-store debit cards allow consumers to receive the same perks as many store brand credit cards. Those who have Nordstrom debit cards receive two reward points for every dollar spent on a Nordstrom debit card, and once they reach 2,000 points they’ll receive a $20 gift card good for one year.

Nordstrom debit cards can only be used in the retail store. While the debit cards are often promoted as the equivalent of debit cards issued by the bank, the Nordstrom debit card doesn’t directly link into the customer’s bank account.

Instead, it triggers the type of transaction that is used for online and recurring payments. Because of this, transactions made with Nordstrom debit cards can take longer to clear than a normal debit charge.

Credit.com’s consumer credit expert notes that while many consumers believe the card acts like a debit card, it’s more like writing a check. Because it takes longer to clear, the lag in transaction time can trigger insufficient funds fees or a returned payment fee, even if the consumer had enough money to cover the transaction at the time of purchase.

These returned payment fees can cost consumers as much as $30 per transaction. Consumers who incur these fees likely had sufficient funds in their accounts when they made a purchase, but by the time the transaction was processed their account balance had insufficient funds.

Nordstrom debit card holders may be surprised to find out that their in-store debit card will allow them to overdraw their bank account.

According to federal law, banking institutions that issue debit cards must receive a consumer’s express consent in order to authorize overdraft protection services. Consumers without overdraft protection who try to make a transaction that exceeds their account balance will have the transaction denied.

In-store debit cards are not bound by these same federal banking laws. The cards are not issued by a bank or credit union, and the fees associated with the cards are not overdraft fees but a returned payment fee or an insufficient funds fee.

Nordstrom Debit Cards Under Investigation

Consumers who have been issued a Nordstrom debit card and have had a returned payment fee assessed against them may be eligible to join a class action lawsuit investigation.

Plaintiffs who bring successful lawsuits may receive monetary damages for the injury caused by store’s returned payment fee policies.

Nordstrom is not the only store under investigation by consumer protection attorneys. Other stores under investigation include Shell gas stations, Kohl’s, Disney, and Cabela’s.

Join a Free Store Debit Card and Credit Card Fees Class Action Lawsuit Investigation

Did you participate in a 0% interest promotion on a store-branded credit card and were charged an interest fee? Were you unexpectedly charged a Returned Payment Fee on a store-branded debit card? You may be eligible to join this class action lawsuit investigation into allegedly deceptive store card fees.

Join the Investigation Now