Banks Versus Retailers

meer53

Start your own bank OP. Good luck.

GingerFurball_2

Floor limits are set by retailers and have nothing to do with the bank.

Banks generally don't allow card payments that will place you in an unauthorised overdraft. However, a payment using a Visa Debit card is a guarantees form of payment, so if a retailer comes to your bank and says 'here's a payment of £10 from GingerFurball' then my bank has to honour that.

If my bank turned round and said 'sorry, there isn't £10 in his account so you can't have your money' then how long do you think the Visa Debit scheme would last? Retailers would refuse to accept them because they wouldn't be guaranteed payment if you used them.

The alternative would be getting to the checkout and the shop assistant saying 'how would you like to pay? Visa Debit? Certainly, just leave your shopping there and come back in 3 days when your payment clears.' How long would you keep using your card if you had to do that?

Hellzapoppin

GingerFurball wrote: »

Floor limits are set by retailers and have nothing to do with the bank.

Floor limits are set by the card schemes, not by the retailers.

Kim_13

The "floor limit" is termed a reserve limit with Nationwide - I've removed mine with no issues, though they say it can take up to 8 weeks or something like that to process.

Removing a floor limit does not mean you will avoid fees - nearly all accounts I've come across will charge a fee because the transaction fails.

System

No it's not.

A floor limit is simply the value below which a retailer can accept card payment without authorisation from the card issuer.

This is nothing to do with a Nationwide 'reserve limit'. This is simply the amount of unauthorised overdraft they are willing to provide.

Kim_13 wrote: »

The "floor limit" is termed a reserve limit with Nationwide - I've removed mine with no issues, though they say it can take up to 8 weeks or something like that to process.

Removing a floor limit does not mean you will avoid fees - nearly all accounts I've come across will charge a fee because the transaction fails.

System

They are actually agreed between the retailer and it's card processor.

Many retailers simply seek online authorisation for all transactions (even with a floor limit) and virtually all also accept cards that have mandatory online authorisation.

GingerFurball wrote: »

Floor limits are set by retailers and have nothing to do with the bank...The alternative would be getting to the checkout and the shop assistant saying 'how would you like to pay? Visa Debit? Certainly, just leave your shopping there and come back in 3 days when your payment clears.' How long would you keep using your card if you had to do that?

[Deleted User]

Zanderman wrote: »

Banks are not a public service - they are businesses. They are perfectly entitled to set their own rules. Why do you think they should work to the ones you want?

If you don't like the way they operate perhaps you should use cash, and store it under your mattress!

No, banks are not "just a business."

anotheruser

TheShape wrote: »

No, they make money available to you subject to terms and conditions that are explicitly set out in an agreement with you. If you choose to spend the bank's money you are subject to the conditions agreed upon.

So, in essence, what I said.

Defining things down to a T is why the UK is in the mess it's in today.

Don't get me wrong, I don't understand what the OP is going on about but you can't open an account and not agree to the terms you've mentioned, and you can't really get by in life without having a bank account. That's where the problem lies - you have no choice. Yes, you have the choice of which bank, but they all operate in the same way with this sort of thing.

Anthorn

anotheruser wrote: »

So, in essence, what I said.

Defining things down to a T is why the UK is in the mess it's in today.

Don't get me wrong, I don't understand what the OP is going on about but you can't open an account and not agree to the terms you've mentioned, and you can't really get by in life without having a bank account. That's where the problem lies - you have no choice. Yes, you have the choice of which bank, but they all operate in the same way with this sort of thing.

But a bank account, even a basic bank account is not your only option: For example try a Coventry Building Society MoneyManager savings account. Mutual, ethical, customer centric and gets loads of awards. You get 0.10% interest, telephone banking, online banking, electronic payments, standing orders, direct debits and a VISA/LINK cash/ATM card. No overdrafts, free account but £5 per unpaid standing order or direct debit due to insufficient funds. Match it with a prepaid card for POS transactions. Et voila, bank account without the bank.