Be careful who you give your credit card number to?

JethroUK

Was a while ago but I'll share the experience

I started using a new company (World on line) for internet & phone service and paying them by DD from my Barclay card

long story short they kept charging me wrong amount, not sending invoices, etc,etc and I decided I no longer trusted them and wanted to part company, cancel my DD and make the final payment by cheque

Contacted Barclay card, told them the whole story and that under no circumstances to send them any money

"We have to pay any demands made on the account"

"Well I just told you not to - they're a bunch of crooks - just put a note on the account"

"Well if they present the correct details (which they'll already have) we have to honour it"

"So what's to stop them drawing £1000 of MY money despite me informing you they're crooks"

"Well they wont get far in business if they did that to all their customers"

"They wont need to get far in business with possession of signed cheque book, they'll just buy a yacht and live in Bali with the proceeds"

"Well anyway, if they make a demand on your account we have to pay them"

"Well you'll be paying them with YOUR money because I'm cutting this card up as we speak and reporting it stolen - you have had fair warning"

Last time I ever used a Barclay Card - although I expect thats std credit card policy

Dont you think this is a weird policy

Be careful who you give your credit card number to

chattychappy

Not a weird policy. You are muddling up DDs and CPAs.

DD = UK concept. You authorise someone to take money from your bank account. DD is recorded with bank and you can cancel with the bank (or the supplier).

CPA (continuous payment authority) = global CC concept. You give authority to merchant to debit your card. Until you cancel that authority with them, they are authorised to debit and the CC should pay out.

If you tell the merchant that they are no longer authorised, further transactions would be unauthorised. So if they do charge again, you can dispute with the CC. Onus on CC to prove it WAS authorised not on you to prove it wasn't. Very difficult for them if you've kept a record of your cancellation with the merchant.

People often moan about CPAs. Usually because:
1) they don't bother to cancel with the merchant - or didn't realise they were agreeing to a CPA.
2) the CC won't cancel them
3) people assume by cancelling a CC they are cancelling the CPA and get upset when they continue to get charged.
4) the catchment is wider than for DD. Many "dodgy" outfits offer CPAs.
5) DDs tend to die after 13 months non-use. CPA can result in a charge perhaps once a year or even after a gap of 2 or 3 years. Easy to forget.

In the end, with CCs it's their money. With DDs it's your money. For this reason I have no problems with CPAs but won't sign DDs.

But on this forum the mantra is to sign DDs and avoid CPAs.

JethroUK

chattychappy wrote: »

Not a weird policy. You are muddling up DDs and CPAs....

DDs CPA NVQs????

Dont mean anything to me

Informing Barclaycard not to give 'a dodgy dealer' any more of my money should be enough - at very least he could have described the process of cancelling, but didn't even acknowledge there was a process - totally the contrary - just insisted he would pay them "whatever they asked for"

Dont you even think his responses were absurd? particularly

"If they over charged all their customers they wont be in business very long"

Who gives a rats whether they stay in business or not (they didn't has it happened)

I was exasperated at this point

opinions4u

JethroUK wrote: »

DDs CPA NVQs????

Dont mean anything to me

Not being funny, but I suggest you educate yourself then.

MoneySaverLog

JethroUK wrote: »

DDs CPA NVQs????

NVQ's are they not something to do with on the job training?

teffers

Don't EVER agree to a CPA on a credit card. Forget this "it's their money" rubbish, when push comes to shove the CC company will be a pain to get them to stop.

Simple answer is not to use them.

vindicated

As opinion said, you need to try and keep upto date, especially when it results in losing money.

Whilst its understandable not everyone will know the difference between DD's & CPA's it is wise to ensure T&C's are read when paying for a service.

My personal opinion is, never pay for something with a credit card unless its in a shop or online for a one off payment, CPA's cause a huge amount of angst and as previously said, damn hard to stop properly.

Also, as someone else also said....always create a paper trail...in times like these you cant afford not to, every penny counts as they say!

JethroUK

Not really getting the answer but I'll just have to deduce that since Barclaycards advisors comments weren't challenged that

Barclaycard will give any amount of your money to anyone that claims it and presents correct details (your number should do) , despite your specific instruction to the contrary

So back where I started

"'Be careful who you give your credit card number to?"

and I'm talking about companies not aunties

especially with lot buying on the internet - once you make one authorised purchase (they have details to present) - they could very easily stiff you for an extra £1000 - even if the company phones you and told you they intend to rob you blind - and all with Barclaycards blessing -

Maybe I'm the only person seeing anything wrong - but glad I got rid of the card - actually hope that World Online stiffed BC for few grand after i cut the card :rotfl:

tomsco

JethroUK wrote: »

Not really getting the answer but I'll just have to deduce that since Barclaycards advisors comments weren't challenged that

Barclaycard will give any amount of your money to anyone that claims it and presents correct details (your number should do) , despite your specific instruction to the contrary

So back where I started

"'Be careful who you give your credit card number to?"

and I'm talking about companies not aunties

especially with lot buying on the internet - once you make one authorised purchase (they have details to present) - they could very easily stiff you for an extra £1000 - even if the company phones you and told you they intend to rob you blind - and all with Barclaycards blessing -

Maybe I'm the only person seeing anything wrong - but glad I got rid of the card - actually hope that World Online stiffed BC for few grand after i cut the card :rotfl:

I'm not sure you understand how it works. If you have cancelled with World Online and they charge you, you dispute the amount (yes, I know you told BC to cancel it and they didn't provide the proper procedure to cancel it, but this is all you can do).

Cutting up the card means nothing. If World Online take a payment and you don't dispute it, you are liable for that. The same as yelling out that you declare bankruptcy isn't going to make you bankrupt.

david39

Take the excellent advice given above:

Write to World Online and tell them that you are withdrawing your authorisation for them to take money from your card. Keep a copy and proof of posting of the letter.

If, afterwards, WO continue to take money from your account, you can then tell Barclaycard that WO have no authority to do so and you can provide proof that you withdrew the authority.

Barclaycard must then refund the money to you and the dispute is between them and WO, not you.

You need to understand that you gave authority to WO to take money from your card originally - Barclaycard were not involved in your instructions. Even though WO appear to have overstepped the mark or, more likely you agreed without realising it to a continuous payment method, only you can rescind that authority.

dealer_wins

I am surprised fraudsters haven't cottoned on to CPAs yet. I mean set up a company, get cardholders to agree to a CPA for something and then rip the card for anything they can, and the card company will honour it. Sounds great to me!!