A&L - Illegal "authorization hold" on my money!

Mikeyorks

With a car dealer and a DC purchase above £5k ... it's normal there would be some verbal security questions from your Bank and via the merchant acquirer? And it's at that point you sometimes get a duplicate authorisation.

It's virtually certain it's not your Bank at fault. And it's quite probable, if there was any verbal authorisation, that it's the dealer's merchant acquirer ... rather than terminal finger trouble at the dealer end, who has caused the problem.

But that's academic ... as the dealer contracts them, and your right of redress to get this sorted - is via the dealer. Go in - insist they look at their transaction log and 'phone their merchant acquirer. They're the only ones who can neutralise the rogue authorisation - whichever of them caused it.

Other than that ... it will be up to 7 working days before your Bank's software accepts the 2nd debit won't arrive and releases the hold on the money. The argument that 'the money hasn't really gone' ..... is totally fatuous. You're being denied the use of it ..... that's an issue you can insist is resolved.

Fjords

Mikeyorks wrote: »

With a car dealer and a DC purchase above £5k ... it's normal there would be some verbal security questions from your Bank and via the merchant acquirer? And it's at that point you sometimes get a duplicate authorisation.

Yes, the transaction was "referred" as he called it. The dealer phoned the bank, asked me a number of security questions such as D.O.B direct debits, and other information only I would know. The dealer then punched some numbers into the machine and the payment went through.

Mikeyorks

No - the dealer 'phoned his merchant acquirer (the company who process his card payments and act as intermediary between his / your Bank) .... your Bank wouldn't talk directly to him. The merchant acquirer rang your Bank ..... and they asked the questions via the merchant acquirer.

It's at that point - where the manual authorisation has been made - that the duplicate has been created. Get in to see the dealer and make him ring the merchant acquirer again. Between them and the transaction log ... they should quickly be able to see where it went wrong - and neutralise the duplicate authorisation.

Take your receipt in ... so he has the precise time of the transaction that has gone through. And I'd be taking a copy of my online account with me ... so there's no doubt in his mind that £10,600 has been tied up.

Fjords

Mikeyorks wrote: »

No - the dealer 'phoned his merchant acquirer (the company who process his card payments and act as intermediary between his / your Bank) .... your Bank wouldn't talk directly to him. The merchant acquirer rang your Bank ..... and they asked the questions via the merchant acquirer.

It's at that point - where the manual authorisation has been made - that the duplicate has been created. Get in to see the dealer and make him ring the merchant acquirer again. Between them and the transaction log ... they should quickly be able to see where it went wrong - and neutralise the duplicate authorisation.

Take your receipt in ... so he has the precise time of the transaction that has gone through. And I'd be taking a copy of my online account with me ... so there's no doubt in his mind that £10,600 has been tied up.

Thanks for that info. Very helpful.

If the merchant acquirer is the one to blame for the double authorization I'm not sure I want them to neutralize it.... They might click the wrong button and ACCEPT the transaction.....

Fjords

I just wanted to update this post so the loop is closed in case people search for the contents. Nothing is more annoying than reading a post and not reading the outcome!!

After speaking to my bank again they did cancel the authorization and returned the money yesterday.

Their system also added a "Payment review fee" of £25 for being so "kind" to pay for my car. I sent them a secure message via my internet banking system and just got a reply now saying that "We have just refunded the review fee which was caused due to an administrative error when you pruchased you car, a letter has also been sent to confirm this".

So they CAN cancel the authorization, you just need to be patient with them.

And that closes my issue and I am now happy

simon_templar_2

Good stuff.

JesseJames_2

Fjords wrote: »

I just wanted to update this post so the loop is closed in case people search for the contents. Nothing is more annoying than reading a post and not reading the outcome!!

Thanks for letting us know the outcome, glad you got it sorted out.