When you buy something using a credit card the merchant has discretion as to whether or not they wish to immediately verify the funds and post the charge. For instance, when you go to buy something using a credit card, if the purchase is small, like $20 or under, a merchant may decide to post it at the end of the day rather than at the moment of purchase. Money is only taken from the secure card account once a transaction has posted, which is where problems can arise.

If a merchant waits to post the charge and you continue on with your shopping, it could end up that you inadvertently over-spend. When that small purchase is posted at days end, the secure credit card company may allow the charge to stand even though you no longer have enough funds on the card. When they do this you will pay interest in the form of a "fee" or "penalty". Your card carries a negative balance and puts you into overdraft until your next deposit. Voila! Your "secure" card just put you in debt.

When you make your next deposit, the debt is deducted before your available spending limit is declared. The small debt is paid in full along with the assessed fee. So, although you rarely end up in heavy debt from this practice, you do end up borrowing money and paying for the privilege. If a million teens do this each month, and each teen owes only $2 in "fees", this can end up making credit card companies a whopping $24 million each year!

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