Closed accounts couple of weeks ago, now its Overdrawn ?!?

Goldiegirl

jonesMUFCforever wrote: »

It is quite simple here - the account was never closed.

It might have been a pending transaction or maybe charges but the account was never closed.

OP you withdrew the money to take the balance to nil but I will repeat they never closed the account.

I agree with you.

It an account is closed properly, at least in the banks I've worked for, a debit or credit may be presented after closure, but the account wouldn't be debited, as it is closed.

The transaction would go into a clearing account, suspense account, reject account, or whatever.

The banks staff then investigate the transactions and take appropriate action, e.g. Sending it back to where it came from or applying it to the customers new account

SnowTiger

Goldiegirl wrote: »

It an account is closed properly, at least in the banks I've worked for, a debit or credit may be presented after closure, but the account wouldn't be debited, as it is closed.

The transaction would go into a clearing account, suspense account, reject account, or whatever.

The banks staff then investigate the transactions and take appropriate action, e.g. Sending it back to where it came from or applying it to the customers new account

Oh, that's interesting.

So, if I made an off-line transaction using my debit card, then dashed off to my bank and closed the account before it entered the system, it would be rejected?

Unrelated questions: can I use a debit card to buy a ticket on a train; if I can, would the transaction be online or offline?

Hominu

I don't think that would work. When I've 'closed' an account before the bank has said that how it works is:

1)Customer requests account to be closed and withdraws funds
2)DDs and SOs are cancelled
3)Account is marked as suspended
4)Any existing cards are cancelled. This step is faster if you hand in your cards rather than say you've lost them.
5)14 days later, the account is closed, but any pre-authorised transactions presented for payment will re-open the account. Once you have paid or disputed the transactions, this step starts again with another 14 days.
6) After 6 years, the account may be archived or deleted

Different banks may works in different ways.

Trains and Planes are typically offline transactions, but some now have internet access and can perform online transactions. Don't depend on this though!

jonesMUFCforever

grumbler wrote: »

How do you know this?

Closing an account doesn't cancel pending card transactions or CPAs.

I beg to differ.
Bank accounts are treated differently to credit card accounts.
When a bank account is closed it is closed - they will know if there are any earmarked transactions pending and would/could not close the account until they had been processed.
If a CPA is presented onto a closed account as others have said they will be debited to a suspense account and in most cases returned as unpaid to the source.

stclair

jonesMUFCforever wrote: »

I beg to differ.
Bank accounts are treated differently to credit card accounts.
When a bank account is closed it is closed - they will know if there are any earmarked transactions pending and would/could not close the account until they had been processed.
If a CPA is presented onto a closed account as others have said they will be debited to a suspense account and in most cases returned as unpaid to the source.

That's not correct as once an authorisation drops off the bank will not be aware of a transaction.

However once the account is closed they will re open the account to allow the transaction to be processed.

There a thread on mse where this has happened to a poster once I'm on my laptop ill link the thread to this one.

jonesMUFCforever

No they won't and CPA are not pre authorised.

stclair

jonesMUFCforever wrote: »

No they won't and CPA are not pre authorised.

They wont know as CPA are just processed as a POS transaction so the same would apply

jonesMUFCforever

I suspect this CPA is a red herring - more likely pending charges that he forgot about.

matttye

SnowTiger wrote: »

Oh, that's interesting.

So, if I made an off-line transaction using my debit card, then dashed off to my bank and closed the account before it entered the system, it would be rejected?

Unrelated questions: can I use a debit card to buy a ticket on a train; if I can, would the transaction be online or offline?

Offline on every train I've paid on. In fact, on one they just wrote down my card details as they didnt have a chip and pin machine then charged it later.

My local train station itself does offline transactions too.

SnowTiger

matttye wrote: »

Offline on every train I've paid on. In fact, on one they just wrote down my card details as they didnt have a chip and pin machine then charged it later.

My local train station itself does offline transactions too.

I wonder who would lose out if a customer closed their bank account before an off-line transaction hit it?

Others have mentioned that once an account is closed, it's closed. So, the bank would reject an off-line transaction that was presented to it after the account was closed.

I guess the retailer (train company in this case) would lose out, despite the transaction being Chip and PIN verified and not disputed by the card holder. But doesn't Chip and PIN give them a guarantee that the transaction will be honoured?

Presumably the retailer could chase the customer, but that would be difficult without contact details.