Incorrect Available Balances Displayed (online)

vetfred

Hi folks,

Is there a reason why my online RBS available balance should state the wrong figures quite often? There's no overdraft on the account at all.

For example, I have a stated available balance (not balance) of £6,500 - this is definitely the correct available figure.

I deposit £1,500 by Switch into a Bookmaker's site (fear not, I'm not a gambler - I'm a Matched Bettor... see gambling introductory loopholes forum on this site if you don't understand and want to!).

The available balance reduces to £5,000 - still correct.

The following day, I receive £5,000 into the bank account.

Instead of stating £10,000 as an available balance, it states £11,500.

That day, I deposit another £1,500 into a site by Switch.

The stated available balance then says £10,000.

With no further transactions on the account, the following day the available balance has corrected itself to £8,500.

So, why doesn't the bank account always display the correct available balance? I appreciate the balance figure can show an uncleared cheque for example but I can't work out the wrong available balance thing.

Thanks:)

MPH80

The reason is because of 'pre-auths'. When a company does an online transaction - it makes an immediate request for authorisation for the money. However, the settlement of that money comes a few days later.

When they request authorisation - the bank reserves the amount requested. However, after one or two days - this authorisation can expire - leaving you with an 'available' balanca which actually isn't because the settlement of the amount will remove it.

Make sense?

M.

cifpower

Apropos of "authorisations" my account with the Halifax was showing a pre-auth of £187.50 today. Apparently there was an issue on 2 October with debit card transactions going through twice. I had to ring up and the CSA had to manually remove one of them and recredit my account.

vetfred

Thanks for the explanation - I guess that it's possible for people to go overdrawn if they log into their account which shows a "false" figure not knowing the system and withdraw in accordance with the stated figure. It certainly confused me but that's clarified why. Thanks again:)

AW0151

vetfred wrote: »

Thanks for the explanation - I guess that it's possible for people to go overdrawn if they log into their account which shows a "false" figure not knowing the system and withdraw in accordance with the stated figure. It certainly confused me but that's clarified why. Thanks again:)

Then they charge you accordingly, great isn't it.