Unusual card practice by large firms

fatboy88

Hi, i'm not sure if this is the correct section.

Has anyone noticed when you use a debit card in say tesco's they debit £1 automatically before you actually amount is taken. I noticed this on my account and someone elses and ask the bank who said this is common practice which can catch a lot of people out who budget to an exact amount.

Basically say you have £20 in your account and got and spend £20 in tesco's with your card. £1 is taken and placed in a floating account which reduces your account to £19 which will take you overdrawn when the £20 is deducted. Your £1 will be returned to your account but this can take upto 5 days. Charges will therefore be added to your account because of this

just thought i'd bring this to peoples attention as most branch staff dont even know

thanks

natweststaffmember

Surely if you have £20 in your account you don't spend £40 since clearly you don't have the funds?

fatboy88

you can spend £20 but what i'm trying to say is they actually take £21 but return £1 later which can take you over your limit. People may have been caught out this way without ever knowing as the £1 is returned a few days later

SueP19

Hi there, I totally understand what you mean. I am subject of an on-hold bank charge (July 07) I spent to within £1.50 of my overdraft (under)and got charged wrongly. I was promised a refund but didn't get it as A&L stalled till the end of July when the "stop" was put on all disputed refunds. Upon inspection my available balance added to my balance was £2 lower than my od limit.................................the explanation "a ghost transaction must have been on my account". Example if you spend say £100 the chip and pin system can register it twice and not take the ghost transaction off until after close of business, therefore incurring charges.!!!!!!!????
As told to me by the telephone helpline of A&L!!!
Mysteriously the £2 re-appeared but I have often noticed a difference between my od and the balance plus available, I go by the available now.

DrScotsman

Ah, this thread explains everything. One of my credit card's available balance was £2 out 2 days ago. Now it's only £1 out.

I know that on Wednesday I was about to buy something by that card and then realised I should use a different one, terminal even printed a "cancelled" receipt for me. Just trying to remember what the other incident could be...I think I had problems with the Chip & PIN terminal in ASDA, that was probably it.

Luckily this hasn't incurred any charges, but I do think it's a bit unfair on those who're close to the limit.

dzug1

Is this pay at the pump petrol? It's quite a common practice, not only at Tesco. It proves the card is genuine before you get any fuel.

Never noticed it or heard of it for instore purchases - and can't see any reason for it there either.

terryw

Thanks for this informative thread. It has solved a small conundrum for me.

Last week I used my easyjet credit for a couple of web purchases and the verification section of the card rang me to verify my purchases. I agreed them all with the exception of two purchases for £1 which I could not recall. This thread expains it.

terryw