CPAs - can your bank tell you which ones you have setup?

grumbler

benjus wrote: »

That's a different case though - if a CPA is really just a series of one-off payments with stored card details, surely each payment would have to be authorised at the time it is taken. And if the card is cancelled between payments, the next payment's authorisation should fail unless it was pre-authorised before the card was cancelled.

For online payments by authorisation I mean just the permission given by the card holder to a company to charge the card - without any physical authorisattion involved.
Even if the card provider offers extra VBV or MSC security, it's at company's discretion to use it or not.

But I don't think that's the case as it would show up in the available balance on the card; and how would they know how many payments to pre-authorise?

This is a different 'authorisation'. Again, not all cards require real time online authorisation by the card provider. Only 'online' debit cards do. Most cards are 'offline' and certainly all credit cards are.

benjus

grumbler wrote: »

For online payments by authorisation I mean just the permission given by the card holder to a company to charge the card - without any physical authorisattion involved.
Even if the card provider offers extra VBV or MSC security, it's at company's discretion to use it or not.

This is a different 'authorisation'. Again, not all cards require real time online authorisation by the card provider. Only 'online' debit cards do. Most cards are 'offline' and certainly all credit cards are.

OK, so if the card has been reported lost (say) and blocked, the CPA transaction will still go through as long as it was done without realtime online authorisation, and the transaction would not be charged back because the cardholder authorised the CPA. But if it did use realtime online authorisation then it would presumably fail.

OTOH if the card had been stolen and the thief used the card after it was reported stolen and blocked, the transaction might still be successful (again as long as there was no online authorisation used) but it could be charged back later as it was not authorised by the cardholder.

Is that correct?

tbh I'm surprised that realtime online authorisation isn't mandatory for Card Not Present transactions.

grumbler

benjus wrote: »

OK, so if the card has been reported lost (say) and blocked, the CPA transaction will still go through

Did you read MSE article linked above?

>>

Can't I just cancel my card instead?
With the new rules in force, such drastic action shouldn't be necessary. Besides, as the forum story above shows, it's not guaranteed to sort the problem.
When you cancel a credit card, the account remains open for a few months to ensure there aren't any as yet unprocessed payments on the card. If the retailer is still asking for the recurring payment, this will count as a new payment coming in and the card company will ask you to settle it.

OTOH if the card had been stolen and the thief used the card after it was reported stolen and blocked, the transaction might still be successful (again as long as there was no online authorisation used) but it could be charged back later as it was not authorised by the cardholder.

Yes and yes.

tbh I'm surprised that realtime online authorisation isn't mandatory for Card Not Present transactions.

Want another example?
>> advise on debit card chargeback

That's why car hire companies often insist on a credit card and hardly ever accept 'online' cards.

benjus

grumbler wrote: »

Did you read MSE article linked above?

Yes, I did read the article. The part that wasn't clear to me was whether or not a CPA transaction would still go through on a blocked card if online authorisation did take place. Unless CPA transactions have some sort of special status with Visa/Mastercard then I think the answer would have to be no.

grumbler wrote: »

Want another example?
>> advise on debit card chargeback

That's why car hire companies often insist on a credit card and hardly ever accept 'online' cards.

Hiring a car is not a card not present situation, which is what I was talking about.

CKhalvashi

benjus wrote: »

If a CPA is just a recurring transaction repeatedly submitted by a merchant using stored card details, why does it behave differently?

Visa can update your card details with merchants on request, I believe.

If you're trying to use a cancelled card, then this won't be the case, however if the merchant updates the details, the transaction is (technically) coming from the new card, not the old one.

grumbler

benjus wrote: »

Hiring a car is not a card not present situation, which is what I was talking about.

You are missing the point.
It can be present or not present, but even if it's present they want a CC to be able to take a random amount later when you are away - and this transaction will certainly be not present.