Debit card authorisations

mat5664

If a merchants makes an authorisation on a debit card - thus decreasing the bank balance available - but has not yet taken the amount and the authorisation has now dropped off - can he then re-instate the transaction without me agreeing?

I am asking as I am disputing an order and so far the amount hasn't been taken (hence the authorisation dropping off) - but I am worried about using the funds and then finding the merchant re-instates the transaction - which is quite a large one.

the original payment was made electronically, not over the phone.

JuicyJesus

mat5664 wrote: »

If a merchants makes an authorisation on a debit card - thus decreasing the bank balance available - but has not yet taken the amount and the authorisation has now dropped off - can he then re-instate the transaction without me agreeing?

They have a long time to take the payment. Either 6 months or 6 years, can't remember which. Most are claimed within a few days, but the authorisation falls off after about five days as it's assumed that the retailer won't claim the funds after that long. However, they still can.

reclusive46

JuicyJesus wrote: »

They have a long time to take the payment. Either 6 months or 6 years, can't remember which. Most are claimed within a few days, but the authorisation falls off after about five days as it's assumed that the retailer won't claim the funds after that long. However, they still can.

6 months to claim under authorisation but 6 years legally to claim the payment off you via some method.

JSR

You can inform your bank that authorisation has been withdrawn and the bank should either block any attempt to take the money or refund it in full plus any charges incurred.

http://www.adviceguide.org.uk/wales/debt_w/debt_banking_e/stopping_debit_and_credit_card_payments.htm

JuicyJesus

JSR wrote: »

You can inform your bank that authorisation has been withdrawn and the bank should either block any attempt to take the money or refund it in full plus any charges incurred.

http://www.adviceguide.org.uk/wales/debt_w/debt_banking_e/stopping_debit_and_credit_card_payments.htm

Utter rubbish. No you can't.

You can dispute it after the fact. But you most certainly cannot withdraw authorisation.

JSR

Really? You better tell Citizen's Advice that you know better then.

JuicyJesus

JSR wrote: »

Really? You better tell Citizen's Advice that you know better then.

I'm amazed that they say that because I know of no law where someone can withdraw authorisation for card purchases after making them, as has happened in the OP's case. Were that the case, the entire system would be useless.

CPAs are a different matter. They can be cancelled. Not just general debit card authorisations though. And you obviously have a right to dispute transactions after they've debited, but only usually on the grounds that the transaction was never authorised by the customer (e.g. fraud).

reclusive46

JSR wrote: »

Really? You better tell Citizen's Advice that you know better then.

The idea you could withdraw an authorisation (Apart from a CPA) is ludicrous. Anybody could just go into a shop, buy something and then call up their bank and cancel the authorisation.

JSR

I don't think it's ludicrous when the payment has not been collected and is not due to be collected until some point in the future. The shop keeper has the opportunity to request payment before releasing goods. A future one-off payment, to my mind, is not really any different to a future recurring payment.

Obviously if you're walking away with the goods there and then that's different but in that case the retailer takes payment straightaway or at least the money is reserved from your bank account straightaway.

I don't know the ins-and-outs of the law, just what is on the Citizens Advice website. Their advice does seem to be that you can stop a one-off future payment provided you do it the day before the payment is collected. They could be wrong but such an option does seem fair and reasonable to me.

JuicyJesus

JSR wrote: »

I don't think it's ludicrous when the payment has not been collected and is not due to be collected until some point in the future. The shop keeper has the opportunity to request payment before releasing goods. A future one-off payment, to my mind, is not really any different to a future recurring payment.

Obviously if you're walking away with the goods there and then that's different but in that case the retailer takes payment straightaway or at least the money is reserved from your bank account straightaway.

What they take is an authorisation to debit your account, which they can do (as stated) up to six months later.

The concept of not being able to reverse payments on a whim is not ludicrous at all. If you then allow people to reverse payment authorisations, and expect merchants to wait until the transaction has fully cleared before dispatching goods, well done - you've just crippled all distance selling.

JSR

At least we agree it's not ludicrous.

Only one thing to add, the OP has nothing to lose by contacting his bank and following the CAB's advice. Maybe he can report back on his success or otherwise and add to the collective knowledge of the forum.