Question

When Ann was traveling outside the United States, she found the perfect souvenir. Unfortunately, when she went to make the purchase with her debit card, the transaction was denied. This happened because Ann had only $200 in her account, and the souvenir cost $300. Ann was disappointed and regretted having to pass on her purchase. What could Ann have done before her trip to ensure that she could spend more than what was in her account

Answer 1

Added overdraft protection feature to her checking account

Step-by-step explanation:

Overdraft protection is a form of credit facility offered by banks. The facility allows transactions such as checks, electronic payments, and transfers to go through even if the account has insufficient funds. Overdraft protection safeguards against bouncing payments, which attract heavy penalties.

Ann has a debit card. She can only shop with funds available in her accounts. Debit cards do not have an automatic credit feature. Ann should have activated overdraft protection on her debit card. She would have linked her savings account to her checking account so that the debit card can draw from her savings account. Savings accounts qualify for overdraft protection.