zero floor limit

bankingworries

Hi there, I previously posted regarding an issue I had where my bank account allowed me to make over £5k worth of deposits to a betting company online even though I didn't have the money in my account (my error not the banks) and I hope to shortly post an update on the whole situation but first I am hoping if someone can confirm if the following is correct....

Is it true that all visa debit card transactions that are carried out in a non face-to-face capacity i.e. over the internet as is my case have what is known as a zero floor limit which means that all transactions over an amount of zero require a pre-authorisation check or face the possibility of a chargeback?

The reason I ask is that the payments that were taken from my bank account where taken by the company during what they describe as 'technical issues' and they have subsequently admitted that they did not carry out the pre-authorisation checks and so are expecting my bank to issue the chargeback requests for said amount and I can only presume this is for the above reason?

*My bank is currently looking into the chargeback's but may take upto 21 days to do so, in the meantime if anyone could answer the question about the floor limit and if possible provide links then I would be extremely grateful.

GingerFurball_2

Was it befair that you were dealing with?

If so, they're having problems with their authorisations not working properly.

bankingworries

Yes it was Betfair, I have been advised that if my bank agrees to request the refund for the full amount then Betfair's Bank will be obliged to automatically sanction the refund due to their failure to do the pre-authorisation checks.

I hope someone can confirm my question regarding the zero floor limit though if possible?

:beer:

stclair

Why was you making the transactions in the first place knowingly you never had the funds available out of interest.

bankingworries

stclair wrote: »

Why was you making the transactions in the first place knowingly you never had the funds available out of interest.

I have edited my answer to avoid being hounded, I am still hoping to get the original question about zero floor limits answered though, thanks and sorry for this

NotRichAtAll

actually you clearly state in your original thread that you knew you did not have the money to play/bet with.

My problem is last night I tried to use my bank account on an online gambling site (betfair) even though I knew I didn't have enough money in my bank account (don't ask why this is something illogical I do due to gambling addiction) however to my shock and surprise the deposit cleared (£200) this was a shock to me and so I tried again and it cleared again.

all your trying to do is drop the blame for your irresponsible actions into someone else's lap it sound s like you have convinced yourself that your not to blame for any of this mess.

bankingworries

NotRichAtAll wrote: »

actually you clearly state in your original thread that you knew you did not have the money to play/bet with.



all your trying to do is drop the blame for your irresponsible actions into someone else's lap it sound s like you have convinced yourself that your not to blame for any of this mess.

Hi I feel in my original thread the questions I asked were lost by the fact that people took the moral high ground on gambling and I never actually got my questions answered and I would really appreciate it if for the same reason I didn't have to defend or explain the reasons, logic or full details of what and why it happened as I am happy to accept the blame for it.

Call this what you will but instead of being hounded of the forum I just hope someone can answer my original question about zero floor limits please, I hope this is not too much to ask the forum members?

Funkyfreddy

bankingworries wrote: »

Is it true that all visa debit card transactions that are carried out in a non face-to-face capacity i.e. over the internet as is my case have what is known as a zero floor limit which means that all transactions over an amount of zero require a pre-authorisation check or face the possibility of a chargeback?

I had "Card Holder Present" and "Card Holder Not Present" Floor limits with my Card Processing agreement.

Neither were Zero.

These "Floor Limits" originate from before Electronic / PDQ card processing - when merchants would manually imprint your card for transactions. If the transaction was above your agreed floor limit you were required to obtain an authorisation code by means of a phone call even if the card holder was present.

I have no idea with current Electronic Card processing if floor limits form part of processing agreements - its hard to see that they do now as all electronic transactions obtain authorisation regardless of value. The latter would also require verification of address details.

FF.

meer53

Electronic floor limits still exist.

Why are you asking this question about floor limits ?

bankingworries

Hi Freddy thanks for your reply, you say your card not present floor limit was not zero, can you confirm if this was an internet based business/transaction as if it was then you kind of answered my question

:j

bankingworries

meer53 wrote: »

Electronic floor limits still exist.

Why are you asking this question about floor limits ?

Hi, I was advised the transactions should be chargebacked due the pre-authorisation checks not being carried out and floor limits exceeded if the floor limit was zero, on searching the net I found a few lines which state that all internet/non face2face transactions have a zero floor limit but I don't believe everything I read and so was looking to pick someones brain if they had first hand knowledge.

Quotes:

Floor Limit – An amount agreed between an acquirer and a merchant for a single transaction over which authorisation and approval must be obtained by the merchant before seeking payment, subject to compliance with certain conditions. Floor limits above zero are only available for face-to-face chip card transactions.

Any transactions over the agreed floor limit will require authorisation to be obtained.
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Floor limit remains zero for merchants who operate in a card-not-present environment. This means that all of their transactions always require authorization, regardless of the payment amount. All Internet, mail order and telephone order merchants fall into this category.