Is it possible to request NO unauthed Overdrafts?

euronorris

Morglin wrote: »

Yes, ask them to apply the same regs as a basic account - there is no overdraft facilities on those.

Lin

I think others have stated before (possibly on another threat) that this is not entirely correct. It depends on the type of cash card provided and so, some people have still entered an unauthorised overdraft.

But, I could be wrong.

Love the sig by the way!

djm1972

Having looked into this more following on from my "Why do banks allow unauthorised overdrafts anyway" thread; yes - the main issue is that currently most debit cards (Visa Debit and Maestro) can be accepted by retailers up to their floor limit whilst "offline" from the banks. These payments (together with cheques issued with a cheque guarantee card) have to be honoured by your bank; which is why most current accounts can enter an unauthorised overdraft.

The solution, as mentioned above is to use a basic current account that offers a "real time only" debit card; currently Visa Electron or SOLO. You will notice that the number of retailers who accept these cards is less than those who accept the full range of cards available in the UK, and this is because they require a real-time connection to the authorisation centre in order to accept them. In fact; it is possible that you if you shop frequently with such a card you will occasionally find a retailer that does accept VE / SOLO being currently unable to process those cards; whilst still being able to accept regular debit cards and credit cards. This is because for some reason they (or the auth centre) is currently offline.

euronorris

djm1972 wrote: »

Having looked into this more following on from my "Why do banks allow unauthorised overdrafts anyway" thread; yes - the main issue is that currently most debit cards (Visa Debit and Maestro) can be accepted by retailers up to their floor limit whilst "offline" from the banks. These payments (together with cheques issued with a cheque guarantee card) have to be honoured by your bank; which is why most current accounts can enter an unauthorised overdraft.

The solution, as mentioned above is to use a basic current account that offers a "real time only" debit card; currently Visa Electron or SOLO. You will notice that the number of retailers who accept these cards is less than those who accept the full range of cards available in the UK, and this is because they require a real-time connection to the authorisation centre in order to accept them. In fact; it is possible that you if you shop frequently with such a card you will occasionally find a retailer that does accept VE / SOLO being currently unable to process those cards; whilst still being able to accept regular debit cards and credit cards. This is because for some reason they (or the auth centre) is currently offline.

Isn't it about time they were all online though? It is 2009 after all.....

djm1972

euronorris wrote: »

Isn't it about time they were all online though? It is 2009 after all.....

Theoretically yes; but realistically; the minimum connectivity required for online authorisation is ISDN, which is an additional cost that small retailers would have to carry and may not be prepared to.

Comms technology is moving rapidly of course; and over the next few years the networks may well move to being fully online - perhaps with floor limits and cards that require online auth being imposed only when a connection / auth server isn't available.

euronorris

djm1972 wrote: »

Theoretically yes; but realistically; the minimum connectivity required for online authorisation is ISDN, which is an additional cost that small retailers would have to carry and may not be prepared to.

Comms technology is moving rapidly of course; and over the next few years the networks may well move to being fully online - perhaps with floor limits and cards that require online auth being imposed only when a connection / auth server isn't available.

I only ask as it is all online here, with the exception of some small shops. But they then choose to trade only in cash.

Am just baffled as to why we haven't done it in the UK yet. If it can be done here, it can certainly be done in the UK.

I understand that there would be an initial outlay of course and this is probably what is causing the delay.