Is bank liable for CC declined transaction?

longshadow_2

Hi All,
After some general advice if anyone can help please. If I try to purchase goods or services online and the CC transaction fails due to the Bank applying a 'security bar' without my knowledge. After ringing the bank fraud team to remove the bar and advise that I am indeed attempting to make the purchase, if the price of the service or goods increase in the interim, are the bank liable for the difference in the price? Especially as the fraud team confirmed that no unsual activity was prevalent at the time of the restriction being applied or historically on my account?

Any feedback much appreciated

creativemieu

I don't really know but I would guess that the bank would argue that they are not liable. However, I would look at the online outlet. If there was very little time between the failed transaction and the completed transaction a reasonable retailer would surely sell at the original price?

TBagpuss

No. they are not responsible for the increase in price, and they are required to take reasonable steps to prevent fraud.

longshadow_2

TBagpuss wrote: »

No. they are not responsible for the increase in price, and they are required to take reasonable steps to prevent fraud.

thanks TBagpuss, I was specifically trying to buy flights, which are inclined to rise quite quickly, I guess now that I know I they are not liable, I should have rang the bank first to advise that I was going to make the transaction, but seems a little unrealistic given the marketing position of the alledged freedom of having a CC. Now £700 out of pocket

Live and learn I suppose

longshadow_2

creativemieu wrote: »

I don't really know but I would guess that the bank would argue that they are not liable. However, I would look at the online outlet. If there was very little time between the failed transaction and the completed transaction a reasonable retailer would surely sell at the original price?

Thanks, I could try ringing the Airline, but I doubt I'll get very far

jonesMUFCforever

Just think of it this way if the price reduced the bank would not expect you to pay the difference back - it works both ways.

steve2005

No harm in complaining and asking for compensation. The worst they can do is say no.
Halifax pulled something similar on me once, argued that they were right and I was wrong and told me to go and see branch manager if I wanted to take things further. Visit arranged, extremely apologetic manager, nice goodwill gesture* in my account the following week.

*Goodwill gesture is what they call it when they fork up but don't want to admit they forked up.

shortcrust

steve2005 wrote: »

No harm in complaining and asking for compensation. The worst they can do is say no.
Halifax pulled something similar on me once, argued that they were right and I was wrong and told me to go and see branch manager if I wanted to take things further. Visit arranged, extremely apologetic manager, nice goodwill gesture* in my account the following week.

*Goodwill gesture is what they call it when they fork up but don't want to admit they forked up.

Actually I think it's exactly what they say it is - a goodwill gesture. They don't have to give you anything in instances like this because they've done nothing wrong. It often simply makes more sense to throw a bit of cash to keep a customer happy regardless of liability.

steve2005

I have to disagree. In my case it was absolutely their fault no matter how they tried to disguise it.

Whiner

Oh good god I've heard it all now.

pvt

In answer to the OP. No, if the transaction failed at the point of making it (ie the airline website came back with "your bank has declined etc etc") then your bank is in no way liable - you had the opportunity to use another payment method to secure the tickets at that price.

It may be a different case if the transaction is accepted by the bank, but they subsequently contact the vendor and declined it believing it fraudulent. But even then, there's a big arguement over whether the price of what you were buying has "gone up", or whether what you were buying is no longer available and you're buying something more expensive instead.

An extreme illustration is you're buying a couple of Zoo World returns to Los Angeles for a specific flight, the transaction for £900 is accepted and then subsequently declined. When you go to book again the only seats on that same flight now are in First, so you pay £19,500 and ask the bank for £18,600 compo.

Hmmm!

Even if it is still economy, with real airlines as the price increases you are actually getting a different ticket type, each with subtly different Ts&Cs.

I can honestly say I've never had a situation like this, though I've had a few cases where my card provider has called me up a couple of hours after I made a flight booking and asked me to confirm it was really me.