When are companies allowed to debit a credit card?

brendangallagher

Hi,

Does anyone know at what point a company can debit your credit card when they don't have stock of the goods? Example:-

I buy online a fridge freezer, the company takes the payment immediately but does not have stock of the item. It takes them over 2 weeks to get the goods and then eventually deliver. Should they not debit the card when they dispatch the goods or is that just a good practice rather than a requirement by law?

Thanks
Brendan

Rafter

Think it is just best practice and I think you have to charge on despatch if you want to be recommended by WHICH? for example.

I guess Visa and other bodies have regulations but a lot depends on the terms and conditions. If they state in those conditions that deliver is in up to 28 days and that they will charge your card when the order is taken, that is exactly what they can do and what you agreed to.

R.

[Deleted User]

I was in a similar situation a while back. When I complained to the company why they charged my credit card when the goods were out of stock, I was told that it didnt't really matter as it wasn't me who was being charged - it was the CCC. I was flabbergasted with the the flippancy.

---lee---

Most companies will not charge your credit/debit card until the goods are dispatched but some certainly do. Tesco debited my card in October and I’m still waiting for my order. At the time I ordered, it was in stock and I got confirmation of 5 days delivery.

When after a week the order had not turned up, I rang up to check the progress and was told that it was out of stock and they hoped to have stock back in before Christmas.

I rang up yesterday and cancelled my order and I can now expect to wait upto a week for the money to be refunded to my credit card. I will then have to wait again before I can get the money off the credit card and back into my current account (as I had already had the statement and paid it some time ago).

In some countries (not the UK) it is not permissible to charge the card until the items are being dispatched.

brendangallagher

Interesting stuff. Thanks for your thoughts.

I'm having to use VISA complaints department to get my money back from a company who took my money, delivered faulty goods (not necessarily blaming them for that) took days to answer emails and had 0700 number to ring which costs goodness knows how much a minute (15 mins on one occassion) . On some days they have an answer message saying their lines are closed because they're busy!

They eventually collected the goods and 2 weeks on there is no replacement despite a promise to deliver and then an email saying where is the original goods even though they collected it the week before! I don't mind mistakes and problems, it's when nobody can be bothered to look after a problem and solve it. Now I have to get all paperwork together as the firm won't answer the phone or emails.

Customer service in this country is getting worse, and as ironic as it sounds I'm not the complaining sort its just now I'm forced to!

I'm sure my issues are nothing new and I'm sure there are plenty of other folk out there who are or are in a similar situation. Share your experiences here!

Thanks
Brendan

frosty

I purchased an X BOX 360 from a company called special reserve,I placed the order in september,they took the money out of my credit card account straight away even though the release date was December 2nd ,then they went into liquidation in november,so I am left trying to get the money back from my credit card (Tesco)and I have a very dissapointed son who was looking forward to receiving an XBOX from santa,I think they should only take the money when the goods are dispatched.

cos_2

In principle I think it's right that companies debit you when they despatch the goods, and most companies I've bought from do that. But you have to make sure that you always leave enough in your account to cover the purchase.

If they debit immediately, you know you've paid. If they debit days or weeks later, you may have forgotten and end up with a whacking charge from your bank!

Just a thought.