Card Transaction Authorisation Glitch

david39

I bought some car insurance online this week. After completing the application form, I entered my Visa card details and was transferred through to the usual card transaction verification box where you need to enter a password for the transaction to be authorised by Visa.

I had forgotten which (of all my passwords) was the correct one for Visa and, after trying three, was eventually told that I would need to apply for a new password and then retry the transaction after 15 minutes.

I agreed a new password and, after 15 minutes went back to the insurance site, where all my details had been wiped out (even the Saved quote, it seems) so had to enter them all again. I then went through the verification system with the new passwor which worked perfectly.....

..... except I find that I have been charged twice for the insurance! It seems that the first transaction went through even though I did not enter the correct password.

It is not a duplication of the same (second) application because the two applications ended up with slightly differing prices - and the entries on the card statement show one of each.

I am sure that the insurance company will reimburse me but what is the point of the card verification system if it passes though a transaction for which the applicant does not know the password?

Dave_the_Ginger_Cat

This process normally works very well, and sorry to hear you've had a bad time.

Totally agree - if you've not authorised it there is no way it should have been debited. Do tell your credit card, as I'm sure they'll want to sort this. Sometimes an authorisation goes through, but a full debit shouldn't. A fault may lie with the Verified by Visa process, the insurance firm, or with the card itself.

You've two ways of redress - either ask the insurance co to refund you or charge it back as 'transaction not authorised'. I think the second is slightly better as it will ensure that you are not billed for it. It may also help the group of firms sort their systems.

Hope it's resolved quickly

izools

I had the same happen to me on eBuyer one time - for quite a large transaction - I was unable to complete the Verified by Visa but the payment was still taken and order shipped.

Pointless system; it seems to serve no purpose other than a simple way for dodgy sites to collect more personal information and a prime target for Frame Redirection / MITM attacks.

david39

I'm glad to say that the insurance company (LVE) responded to my complaining email by a telephone call within 2 hours and have apologised and implemented a refund for one of the debits.

I do not think it was their fault, the error lies in the Visa verification process that rejected the wrong password but still let the transaction go through.

I rang the credit card company who sympathised and suggested that the quickest way of resolving the problem was to get the insurance company to refund one of the debits. They said that they had no control over the verification system as it was implemented and operated by Visa themselves. However, they said that if I could not get a satisfactory resolution, I could ring again and they would put me in touch with a customer support department that would be able to look into the problem.

Personally, I thought that they should look into the problem themselves - if I had been using the card fraudulently then either they or one of their customers would be the losers.

Anyway, all resolved now, thanks.