NatWest Debit card cannot be used a Pay at Pump ?

Hellzapoppin

Ryan101 wrote: »

Hi,
Just to let everyone know I have used the card at ASDA, Tesco and Morrisons Pay at pump and it works fine. So I have no idea what the Natwest Staff member mean't.

But as a side note I notice when I use the card as a contactless card and at some retailers with chip & pin my balance and available balance does not drop until the transaction actually comes off my account a few days later.

Contactless card transactions do not go through the authorisation process, so the back has no advance notification that the transaction is on its way through the system and therefore it doesn't earmark the funds in your account for an expected debit for 'x' amount.

Some retailers, when accepting chip and pin transactions do not seek authorisation for transactions below the limit at which they need it and then there is also no earmark on your account.

Ryan101

Hellzapoppin wrote: »

Contactless card transactions do not go through the authorisation process, so the back has no advance notification that the transaction is on its way through the system and therefore it doesn't earmark the funds in your account for an expected debit for 'x' amount.

Some retailers, when accepting chip and pin transactions do not seek authorisation for transactions below the limit at which they need it and then there is also no earmark on your account.

Is that not a bit risky for the Banks ?, as it is certainly open to abuse, after all you could spend money you effectively did not have, I am surprised that banks just hand out cards like that to everyone who opens an account.

dr_adidas01

Hellzapoppin wrote: »

Contactless card transactions do not go through the authorisation process, so the back has no advance notification that the transaction is on its way through the system and therefore it doesn't earmark the funds in your account for an expected debit for 'x' amount.

Some retailers, when accepting chip and pin transactions do not seek authorisation for transactions below the limit at which they need it and then there is also no earmark on your account.

Contactless card transactions do not go through the authorisation process. Are you sure of this? I know a few contacless cards that dial home when used this way to check the funds are available before authorising a contacless payment.

Predaid ones do, some nationwide account holders cards with contactless ones dial home to check funds are available before authorising payments.

I agree with you some don't check for funds, but to say that all don't is wrong as you clearly have no idea how some other financial institutions operate there contactless debit cards.

p00hsticks

Ryan101 wrote: »

Is that not a bit risky for the Banks ?, as it is certainly open to abuse, after all you could spend money you effectively did not have, I am surprised that banks just hand out cards like that to everyone who opens an account.

They don't. Banks don't always give a debit card to new customers straight away, sometimes you'll just get a cash card that will let you withdraw cash at ATMs.

And even if they do, they can choose to give you an 'online' debit card that seeks authorisation from the bank before every purchase and therefore prevents you going overdrawn by refusing the transaction (this is the type of card that you won't be able to use to buy tickets on a train or at a petrol pump. )

And if you do have an 'offline' card that allows you to spend money you don't effectively have, then if you go overdrawn the banks will impose a charge - either a flat rate daily charge and/or a % interest on the amount overdrawn.

So the banks weigh up the risk and make sure that the riskier customers either can't step out of line or pay for the privilege if they do.