Credit card bounced

w00519772

I received a Santander cashback credit card last month. I was offered a credit limit of 1500 but I decided on a credit limit of 1000. I have savings.

I use the credit card as much as I can. Today a payment was rejected at Tesco because I would of gone over the 1000 if it went through. I have two questions:

1) Will there be a charge for this even though the payment did not go through? - I used my debit card to make the payment after my credit card was rejected.
2) Looking at my credit card online there is a "pending authorization" payment for the amount that was rejected. I assume that this will not be taken from my account. Why is it "pending authorization" if it was rejected?

rehanmalik3030

w00519772 wrote: »

I received a Santander cashback credit card last month. I was offered a credit limit of 1500 but I decided on a credit limit of 1000. I have savings.

I use the credit card as much as I can. Today a payment was rejected at Tesco because I would of gone over the 1000 if it went through. I have two questions:

1) Will there be a charge for this even though the payment did not go through? - I used my debit card to make the payment after my credit card was rejected.
2) Looking at my credit card online there is a "pending authorization" payment for the amount that was rejected. I assume that this will not be taken from my account. Why is it "pending authorization" if it was rejected?

People often make this mistake. When you come to spend using your credit card you should NOT look at the outstanding balance on your credit card BUT look at the available credit because:

Outstanding balance + Available credit ≠ Credit Limit

Any pending transaction in recent authorizations will reduce the available credit straight away but will not effect the outstanding balance until the merchant has claimed the money and the amount has been matched and included in the current unbilled statement.

grumbler

1) No, but don't assume that next time in the same situation it will be rejected again and will save you from being charged for going over the limit.

w00519772

grumbler wrote: »

1) No, but don't assume that next time in the same situation it will be rejected again and will save you from being charged for going over the limit.

thanks but how can you be so sure? This is the first credit card I have ever had. I have always paid for everything on my debit card in the past. The only reason I have it is for the 123 benefits. I do not really need it.

Armorica

cheques and direct debits bounce and are returned unpaid

cards are merely declined, and you wouldn’t normally pick up a fee (unless your bank permits or a off-line/contactless payment takes you over the limit)

the authorisation should fall off in a couple of days - as long as you know/have the decline/cancelled slip from your credit card it’ll be fine

you can be sure by monitoring your spending…and stopping when it gets to your limit?

rehanmalik3030

w00519772 wrote: »

thanks but how can you be so sure? This is the first credit card I have ever had. I have always paid for everything on my debit card in the past. The only reason I have it is for the 123 benefits. I do not really need it.

There will be no charge because the transaction was declined and therefore will not post to your CC account and therefore will not take you over your credit limit

w00519772

Thanks though I am still a bit confused because:


1) the self service till said "ask the customer to pat with another card". No cancelled receipt was supplied.
2) there is still a "pending transaction" on my credit card according to internet banking.

grumbler

w00519772 wrote: »

thanks but how can you be so sure?

The only way is to keep record of all your transactions and to know the exact available balance. It was a wrong decision to decline the higher limit available as you can feel more relaxed with a bigger 'headroom'.