Debit card transaction question

mitchb

Maestro transactions have the same validity as a cheque ( 6 months) so can debit within that timeframe. Normally if a company gets the payment authorised ( reserves the funds for the payment) this lasts 3 days, hence the reason most companies complete the transaction within 3 days as they will get their money.

Mikeyorks

heppy23 wrote:

Let's say I had £100 in my account cleared funds. Available balance £100.

I go and buy £50 of petrol. Account balance £100, available £50.

The next day you would expect balance £50, available £50.

BUT more often than not it would be balance £50, available £0.

There was a lag between the balance and the available balance being adjusted.

I even went into the abbey while the balances were showing up as odd and they couldn't explain it.

Abbey blamed the card companies, card company blamed abbey.

The fault lies with the retailer .. or more accurately the 'merchant acquirer' who processes the Debit Card transactions on behalf of the retailer. I've had similar problems with Credit Cards. In one case I had a negative 'available' of £2k ... despite actually having £4k still unused on my credit limit

When you make a purchase .. it is 'authorised' .. and that results in money being reserved from your account. Hence you have 'available' .. less than credit balance.

But when the real transaction comes through to your account - the account needs to match it to the fact that this is a previously authorised transaction. Whereby it takes it off your 'balance' - but not from 'available' .... because it's already done that?

But the 'does it match' process has to use more than just value - because a lot of transactions are same value (as your example for £50). So it also uses 'date of transaction' .. as well as value.

The problem arises where a merchant puts an authorised transaction through - but uses a date (normally the next day is the usual problem) different to that used when authorised. So your Banks software does not match it up (value matches .. date doesn't) .... and deducts it as though it were a completely new transaction. So it deducts it from both the balance (reducing it to £50 in your example) and the 'available' .... which now reduces to £0 as in your example!

Effectively stopping you using your account - despite there's unused money in it? The only normal safeguard is that the 'match up' software realises it shouldn't be processing an unauthorised transaction .. and logs this on an exception list for a proper human being to look at. Who quickly realises (from the merchant account number, or similar?) that this is an authorised transaction -- and restores the 'available' value to what it should be. However, in my CC case, the exception list took up to 10 days to be processed - presumably 'cos there were lots of similar instances on other accounts happening daily?

Abbey should have been able to explain it .... if I can? And mine is solely from experience of having the problem and working out, via several conversations with an equally unknowledgeable Help Desk, just what was happening. But just how widespread ... and what the Banks are doing to negate it .. not a clue I'm afraid.

Mikeyorks

mitchb wrote:

.... this lasts 3 days, hence the reason most companies complete the transaction within 3 days as they will get their money.

.. it varies slightly between providers, but the average is around 10 days. The fact that most transactions complete around 3 .. is because that's the normal BACS transaction cycle.

tripled

I've found with Halifax once a payment has been authorized, it comes out of my available balance immediately but it varies between 2-4 days to appear on my account, even for transactions with different retailers on the same day.

tazmaniandevil_2

Sorry for bumping this thread, but I didn't know where else to post.
The problem we have been having with Maestro and Clydesdale Bank on our joint current account is as follows:
I spend (for example) £50 in Sainsburys. Clydesdale take the £50 out of my account, then immediately put it back in again. I leave Sainsburys and go to the ATM for a balance enquiry. I see what I think is my balance, and spend more money in another store.
Shock horror. The 'missing' transaction finally appears back on my account (with frightening regularity) 15 days before payday. I then get a letter saying I am being charged for being overdrawn, and the charge will be applied 14 days from date of letter. i.e. the day before pay day.
Guess what? When the charge is applied, I'm overdrawn and get another charge.
When I asked Clydesdale how this is possible, I can't get an answer. They just keep refunding the charges. I showed the proof of these dodgy transactions from an internet banking printout to a bank employee, who asked to keep my printout.
I have no direct debits or standing orders on this account. I have access only through ATM or Maestro. How can it be possible to be overdrawn?

khurammm

tripled wrote:

I've found with Halifax once a payment has been authorized, it comes out of my available balance immediately but it varies between 2-4 days to appear on my account, even for transactions with different retailers on the same day.

Same with me. But do the atms show the available balance or the total balance?

RayWolfe

tazmaniandevil wrote:

I spend (for example) £50 in Sainsburys. Clydesdale take the £50 out of my account, then immediately put it back in again. I leave Sainsburys and go to the ATM for a balance enquiry. I see what I think is my balance, and spend more money in another store.

Seems like you need to take responsibility for your account. If it is only used as you describe it should be simple to keep a running total.

tazmaniandevil_2

RayWolfe wrote:

Seems like you need to take responsibility for your account. If it is only used as you describe it should be simple to keep a running total.

I'm sorry, I thought I had pointed out in the first paragraph that this is a joint account.
That would be fine if it was only me who accessed the account, or if we were joined at the hip.
My point is why do Clydesdale take the money out, then immediately put it back?
If I spend £100 which is deducted then immediately re-credited, how does my wife know I spent this money? Do we need to phone each other every time we spend a quid?
I'm happy to take responsibility for the account, if Clydesdale will take responsibility for managing their side properly too.