Debit card holding amount - online shopping

milliejon · 17 June 2006 at 2:57PM

Asda have charged me twice for my online order. I rang them and apparently they take the guide price out of the bank before doing the order. This ensures that there's money in the account before doing the shopping!

They call this a holding amount, until the real amount goes out. I'm pretty sure this isn't allowed, but if anybody can let me know I'd be grateful.

Other than this, because I account for every penny and keep a spreadsheet with the amounts I'm expecting to go out, I know how much money I have in the account. However, when I tried to pay for something today, I was declined. I then rang the bank and found out about the holding amount, even though the real amount left my account yesterday. They have cancelled the charge, and I've cancelled it at the bank, but if this goes out and makes me overdrawn I will not be happy!

I've complained about this, but thought you might be interested in this, or might be able to help with my query about a holding amoung.

Emmzi · 17 June 2006 at 2:59PM

they've NEVER done this with me - see if it is a regional quirk.

Jessiepig · 17 June 2006 at 3:07PM

My Asda has never done this. But I use Tescos the most as they have more delivery times and if you have a problem they process the refund straight away.

lynzpower · 17 June 2006 at 3:49PM

Ah the holding issue,

Ask them to speak to thier merchant bank to release the hold - and pronto.

They should be able to do it same day.

milliejon · 17 June 2006 at 5:00PM

Thanks Lynz. They have rung me back and told me they're taking the hold off, but it will take 2-3 days.

They have offered to pay any costs I incur from the bank because of this, but I have to shoulder the costs in the meantime. It's really annoyed me. I've complained to their Customer Services about this. I'm not going to use them again as I can't afford to get into circumstances like this.

I needed bits and bobs today - like bread and milk and couldn't get them because of this hold.

Grrr!

milliejon · 17 June 2006 at 8:21PM

Has anybody else had this kind of experience?

---lee--- · 17 June 2006 at 10:59PM

It’s almost certainly the merchants fault – but as there are other 3rd parties involved as well. The merchant obtains an authorisation against your card details through their card processing provider. This returns an authorisation number which is supposed to guarantee payment for that amount (it does not actually, but that’s a different story). This amount is then ‘reserved’ from your available balance until it’s collected or 7 days go by.

When the merchant requests that the collection is done, they are supposed to specify the authorisation number which will cancel the ‘reservation’ at the same time. If they don’t do this and instead treat it as a new transaction then the reserved amount will stay with your account for 7 days or until the merchant cancels it.

Systems which collect and process these type of payments are supposed to go through strict accreditation with the banks which should prevent these sorts of errors – but of course, there’s always something that slips through the net. They tend to be very complicated and difficult to test.

You could always ask Asda for some vouchers to compensate you for the inconvenience.

milliejon · 18 June 2006 at 8:22AM

Thanks for this Lee. Just one question. What happens after 7 days if the reserved amount isn't collected? Does it just clear?

This is so annoying because it means that my account has been nearly £50 below the balance I think it should be for a week.

I have complained to Asda to let them know that I won't be shopping online with them again. But just in case they offer some sort of compensation for the inconvenience I've mentioned that I still shop in the local shop!

milliejon · 18 June 2006 at 8:29AM

Emmzi wrote:

they've NEVER done this with me - see if it is a regional quirk.

Hi Emmzi. When I spoke to the accounts people they said that they always put through this payment the night before, which is why they ask for the order to be processed before 5pm the night before delivery.

Lee's message above is really helpful though. It looks as though they put the actual amount through my account as a new transaction. Donkeys!!

I really don't want to be caught out like this again.

I usually get my shopping delivered from Tescos on a Wednesday (when I don't have money in the account) and the payment leaves my account on a Friday (when I've got money in there). If Tescos worked in the same way as Asda, I would never have my shopping delivered!

sammy115 · 18 June 2006 at 8:30AM

This kind of thing happened to me in Boston a couple of years ago. I had some virgin points and we booked a hotel in Boston with the points. When I checked in they swiped my card (pretty standard - and I assumed in case we incurred any other room charges) however, when I went to the cash point later and it wouldn't give me any money I rang the bank to be told that there was a 'holding charge' of nearly £400 - which was the price of the hotel. We had a miserable time in Boston, we had no money and couldn't get any. Virgin refunded the points and took the hotel off their list of places to spend points, but it has made me very wary of hotels now!

milliejon · 18 June 2006 at 8:58AM

I don't understand how they can do this. They don't mention it (I've read the Asda T&Cs three times now). The only thing they say is that they'll take payment when they are ready to deliver.

I really feel for you going all that way with nothing to spend.

At least Virgin reacted well to this.

I always assumed they took your credit card details in case they needed it - like if you did a runner or trashed the room. Then they could charge your card for it.

Debit card holding amount - online shopping

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