Lloyds debit card not accepted at pumps

gwin

I'm with Lloyds, just a basic account, and noticed my card wouldn't work on Tesco fuel pumps. Cashier told me it did that occasionally.
Awhile later, same thing at Asda.
Rang Lloyds to be told they removed this facility from certain cards.
WTH? I've never had an issue in 30 years.
It's a debit card! I can't spend what I don't have.
Anyone had this with other banks or have an explanation?

BoGoF

The point is you could spend what you don't have with pay at pump.

18cc

I think I am right in saying that petrol pumps are a special case and are 'offline' ie they can't contact your bank in real time to check if you have enough money to pay for the petrol hence basic cards can be declined.

ceredigion

Also the preauthorisation amount went from £1 to £100

jonnygee2

I think I am right in saying that petrol pumps are a special case and are 'offline' ie they can't contact your bank in real time

Petrol pumps are all online terminals.

Anyone had this with other banks or have an explanation?

Most banks now decline some pay at pump transactions. Here's why.

Card payments have two parts, an authorisation and a settlement. At authorisation stage, the terminal simply contacts the bank and says 'is this money available', but at this stage no money actually changes hands between the two parties. The bank will normally block off the authorised amount from the available balance to prevent the customer spending it. About two days later, the terminal sends demands (presentment files) through the card provider to the bank, who then actually send them the amount of money.

The problem with petrol pumps is that when they authorise, they don't know how much petrol you will take. So, they take one of two approaches;

1) High auth - they authorise £100 - £150, and wait for settlement. If the settlement is lower, they return the remainig amount to the available balance. This is safer for the bank and the petrol pump, but it restricts the users balance by £100 for two days which can be difficult for many people

2) Low auth - they authorise £1, and then present later for the full amount. At this stage, the bank has to pay the merchant - whether or not the money is in the persons account. As the amount authorised for only £1, and the presentment will be more, if the customer has already spent that money then the bank will be in the red and will have to recover this money from the customer.

Tesco pumps work on low auths.

The problem is that in the last couple of years a unique type of fraud has arisen where people get a card under a fake ID etc, authorise £1 of fuel, fill up, do the same again turning a few £ of balance into thousands of pounds worth of fuel. Some people, with specially rigged vans with large petrol tanks concealed inside, have stolen thousands of pounds of fuel. When this transaction settles, the card will go deep into the red, but by then the individual has scarpered and the money can not be recovered.

So, obviously, banks have initiated algorithms to prevent this, which say things like 'if you only have £5 on your card, or you already have an unsettled fuel pump authorisation etc' we will decline this fuel pump auth.

As these are anti-fraud algorithms the details are kept secret (obviously) you will only ever get a generic response like its 'disabled for some people' etc.

The solution is not to use pay at pump, or to look for high auth pay at pumps (although these are more common in Europe than outside of Europe.

Shakin_Steve

ceredigion wrote: »

Also the preauthorisation amount went from £1 to £100

That was changed almost straight away, back to £1.

gwin

Thank you so much, guys. Jonnygee2, that was an even better explanation than I expected. I can see why now.

swindiff

Get a credit card, no problem then

Don80

The easiest answer would be to see if you can get a "full" account with Lloyds as you would be able to use the petrol pumps. I have a friend who (like me) banks with the Bank of Scotland, and he had the same problem. He filled in an upgrade form in his internet banking and was sent a new card with contactless and the ability to use it everywhere. The main change would mean if there's a reason you have a basic account (some people want the control of not being able to get into accidental debt) that would make you reconsider?

pinkdalek

ceredigion wrote: »

Also the preauthorisation amount went from £1 to £100

I thought this was if you were using abroad only?

Some bank cards are not accepted at pay at pump cards, if the OP is not happy with their bank then switch out. There's no loyalty is there after 30 yrs of being able to use it.

Westie983

Basic accounts have always been problems at petrol pumps, you have a few options.

1. Upgrade your bank account
2. Use another account and transfer money
3. Pay via another method
4. Go to the cashier and pay with your account

Westie983