Understanding the process of who pays who in a credit card transaction.

Art1012 · 28 January 2015 at 4:58PM

Hi I am new to the forum and want to post a question about the payment for goods process when I make a credit card purchase.

Here's the story
Once I have given my card details to a retailer, my card company has autorised the transaction They tell me the Merchant (retailer) has drawn down the funds. At this point the transaction is posted to my on line card account and all looks fine, and I am looking forward to the delivery date.
Then I start getting calls from the Retailer saying they don't have the money, they have cancelled my delivery and are insisting I make another card transaction otherwise I will not get the goods. I refuse.

My understanding is that once the above process up to the point where it is posted to my account has been completed I am actually out of the loop until the credit card bill drops on my doormat. is this corect?

My understanding is that at this stage the credit card company is responsible for paying the retailer for the product or services, and the retailer shouldn't be harrassing me.Is this correct?

If so Shouldn't the retailer be chasing the credit card company for the money transaction details and not me?

My understanding is that the credit card purchase transaction is in effect a loan and my contract is to repay the loan to the card company, I do not have a contract with the retailer. Am I correct?

Please help with advice, the retailer refuses to supply the goods, because he insists they don't have the money, but the credit card company says they have taken it.so I am left with no alternative but to open a disputed payment with my credit card company. I want to get the rules straight for this.

thebritishbloke · 28 January 2015 at 5:14PM

Contact your credit card company, ask if the funds have cleared for that transaction. If they have, then get a reference from them for the transaction, phone up the retailer and tell them your CC company has confirmed that it's cleared and give them the reference. If they still refuse to ship your goods, contact your CC company and tell them to issue a chargeback.

You do have a contract with the retailer to pay, even if they don't have T&C's set in stone. If they haven't delivered a product/service though, you're not liable to pay.

Art1012 · 30 January 2015 at 1:25PM

Thanks Britishbloke and Malcnascar for your advice.

From what you say I do now understand that a contract exists between me and the retailer so that If the credit card company does not pay for the goods. I have to.

I did go back to my credit card company on the 26th January and they were able to confirm that on their system they had the record of the drawdown transaction by the retailers bank 6 days previously, with the merchant code and transaction ID. Although they would not give the merhant's details to me because of confidentiality, they did confirm that this information could be passed to the retailer by myself to confirm that the money was in their bank for the past 6 days. Plenty of time for it to clear.
However I still had a rotweiler of an accountant on the phone insisting that I submit another credit card payment otherwise I would not get the goods, ignoring the information that I gave and also insisting they didn't have the money when clearly they did.
I refused to pay again and cancelled the order.
My credit card company have now opened a dispute to retreive their payment and their service has been great.

agrinnall · 30 January 2015 at 6:57PM

It shouldn't make any difference to the way the CC transaction is processed and payment made but can you clarify whether you made the purchase as a consumer or as a business? I only ask because most consumers wouldn't end up on the phone with an accountant.

Videoman · 30 January 2015 at 7:39PM

Hi Everybody!
off topic, i know, but......
We had two machines stolen this week and RMS, the firm who we have the card system off, have quoted over £200 per machine to replace. Looking on the net, our terminals are no where near this price.
If I buy one from a private sale, how will they work, as I believe that they have a sim card inside and other techi stuff..... I have no idea so any info would be great. I do not know how the system works as we also have a firm called Elavon in the system too. What part do they play?
Thank you

Understanding the process of who pays who in a credit card transaction.

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