strange and confusing system by Morrisons and Tesco's

morrit

Last night I bought £50 worth of diesel and used the Tesco's 'pay at pump' system. Now, usually with a card transaction the balance would go down by however much you spend, and show up on the bank account a few days later (available balance and actual balance)

I contacted my bank(Barclays) as my account had only been debited £1. I was getting panicky thinking that the card hadn't gone through fully and I'd be accused of bilking, but barclays informed me that initially tesco's and morrisons only deduct £1, then take the rest a few days later as part of their system.

Can anyone explain why they would do this and has anyone been caught out by this ie taken out too much, because the available balance reflected more than there actually was, due to the shop taking the rest a few days later? fortunatey I caught it but it may be an idea to warn others of this...

DCFC79

Not heard about this before

superstylin

nor me. not been noticed on my statements either

RobertoMoir

morrit wrote: »

Last night I bought £50 worth of diesel and used the Tesco's 'pay at pump' system. Now, usually with a card transaction the balance would go down by however much you spend, and show up on the bank account a few days later (available balance and actual balance)

I contacted my bank(Barclays) as my account had only been debited £1. I was getting panicky thinking that the card hadn't gone through fully and I'd be accused of bilking, but barclays informed me that initially tesco's and morrisons only deduct £1, then take the rest a few days later as part of their system.

Can anyone explain why they would do this and has anyone been caught out by this ie taken out too much, because the available balance reflected more than there actually was, due to the shop taking the rest a few days later? fortunatey I caught it but it may be an idea to warn others of this...

If I had to guess, and it is only a guess, there's a system where retailers can make a 'test' charge to a card to prove it is valid before going on to complete a transaction, and I think this is what happens here:

Think about it, I used pay at pump at my local tescos yesterday and this is how it went down

1. insert card
2. give pin
3. 'approval' given for £59.00 of petrol (sounds like the £60 limit talked about on their old system, less £1 huh? how... interesting).
4. Fill up
5. Weep at the idea that we're supposed to think the new prices are "cheap"
6. finish using the pump. At this point it offers a receipt, and your transaction is finished.

See what they (probably) did at stage 3 there?

morrit

That is probably right, but surely that it would show up on my statement as 2 seperate transactions?
and I'd still ony be spending a max £59 (although I'm sure it used to be £61, weeping that petrol is goign down but diesel still stays expensive, being given the finger by the guy who decides it's his right of way...

I thought it was an odd system too... I'm just thinking that if you have a joint account, 2 cards... how would the other person know that money wasn't in there. far scenario I know, but it probably happens... And the banks won't complain cos think of the charges!!!:eek:

RobertoMoir

morrit wrote: »

That is probably right, but surely that it would show up on my statement as 2 seperate transactions?

That I can't answer. But I bet that's what is going on. I only thought about this because I was wondering this morning why the limit was set at £59 instead of a nice round figure.

vikingaero

RobertoMoir wrote: »

That I can't answer. But I bet that's what is going on. I only thought about this because I was wondering this morning why the limit was set at £59 instead of a nice round figure.

This is what I wonder. On my Co-op Visa card I get the limit of £59, yet on my Barclays Visa I get a limit of £80.

exup

Not sure whether this is the same thing - but I took out a DD with blockbuster and they withdrew £1 from my account initially before taking the full amount to make sure my account was vaild.
I also recieved a telephone call from my bank checking up on the validity of the withdrawal as it can be a check by legitimate companies - but also can be a check by someone who is ready to drain your account.
THey had frozen my account until I authorised it.

d.edna

morrit wrote: »

Last night I bought £50 worth of diesel and used the Tesco's 'pay at pump' system. Now, usually with a card transaction the balance would go down by however much you spend, and show up on the bank account a few days later (available balance and actual balance)

I contacted my bank(Barclays) as my account had only been debited £1. I was getting panicky thinking that the card hadn't gone through fully and I'd be accused of bilking, but barclays informed me that initially tesco's and morrisons only deduct £1, then take the rest a few days later as part of their system.

Can anyone explain why they would do this and has anyone been caught out by this ie taken out too much, because the available balance reflected more than there actually was, due to the shop taking the rest a few days later? fortunatey I caught it but it may be an idea to warn others of this...

Actually it doesn't I worked in a Tesco PFS with the new pay@pump system, it authorises your card with your bank for £59 of fuel (Used to be £80) then a few days later it will then take the whole amount of petrol you have drawn.

I have heard of it doing an authorisation hold of £59 and then when you put for example £30 of petrol in it will release £29 back into your account. but not the method in tesco you have said.

RobertoMoir has also got the new system down to a T

morrit

I still think it's odd... I mean, it never used to be like this....did it? It still strikes me as odd as to why it is taken a few days later and not immediately.

d.edna

morrit wrote: »

I still think it's odd... I mean, it never used to be like this....did it? It still strikes me as odd as to why it is taken a few days later and not immediately.

It was worse on the old system, Fraud was rife throughout, If someone got a swip of your card they could fuel up via the old system.

Retailers have 7 days to claim the money so this is not strange, its what they do now it depends when the stores cash office claim the money.