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Authorisation Hold ?

venomx
venomx Posts: 1,137 Forumite
Seventh Anniversary 500 Posts Name Dropper
edited 4 August 2019 at 6:09PM in Budgeting & bank accounts
Hi guys.
I'm trying to find a definite explanation of what an authorisation hold is ?

I encountered an authorisation hold last month with my Sky bill, it appeared the money came out twice within 3 days, but shortly after, one of the transactions was refunded by my bank after i got in contact with them and want to make sure it doesn't happen again ?
I did change my sky bill date which im guessing has something to do with it to make sure the details were valid ?

Thanks

Comments

  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    How are you paying your bill?
  • Can you advise who described it (whatever 'it' was) as an 'Authorisation Hold'?

    If you are talking about a card-based transaction, then an Authorisation is simply a retailer checking to see if you have the funds/credit available to accommodate a transaction and effectively asking for the funds/credit to be ring-fenced to cover a transaction that they will be clearing shortly. Many people refer to this as a 'pending' transaction.

    What you have described sounds like two transactions were 'cleared' from your account. Do either of the two clearing dates match with your new and old Sky bill dates?

    Whatever the case, it doesn't sound like something your bank is responsible for; it will be Sky who is calling for the funds and Sky who will have to sort out the double-charge problem (if that's what it actually is).

  • my 2p worth - you won't get any pending authorisation if you pay by direct debit -- you just to make sure the funds are available to be collected by your bill date which can be clearly determined by looking at your online Sky account.
  • venomx
    venomx Posts: 1,137 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    edited 5 August 2019 at 6:30AM
    Paying by debit card
    One transaction was 'pending'and came out 27th when my bill always comes out which my bank reversed instantly when I told them and the other was the full transaction on the 30th

    The new billing date is on the 5th, starting September

    Sky said the money should have been returned the next day
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    It is Sky, not your bank, who are placing, and removing, the authorisation charge. Your bank won't do anything about it unless you have run out of funds/overdraft, in which case your Sky payment would fail and you'd be in trouble with Sky.

    Why are you paying by debit card? If you pay by Direct Debit, you won't have this issue.
  • venomx
    venomx Posts: 1,137 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    colsten wrote: »
    It is Sky, not your bank, who are placing, and removing, the authorisation charge. Your bank won't do anything about it unless you have run out of funds/overdraft, in which case your Sky payment would fail and you'd be in trouble with Sky.

    Why are you paying by debit card? If you pay by Direct Debit, you won't have this issue.

    I did go into an unauthorised overdraft when they took the second payment, so I contacted my bank and they refunded it instantly.

    I prefer to pay by card as it will go out exactly when I want it to including weekends ( as you know direct debits can't go out over the weekend )

    I've been a sky customer for 7 months and never had this problem before.
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    venomx wrote: »
    I did go into an unauthorised overdraft when they took the second payment, so I contacted my bank and they refunded it instantly.

    I prefer to pay by card as it will go out exactly when I want it to including weekends ( as you know direct debits can't go out over the weekend )

    I've been a sky customer for 7 months and never had this problem before.
    Your decision, obviously, how you want to pay. It seems clear to me, though, that paying by DD is a lot safer, as your money won't be taken before a specified date each month, and only up to a pre-agreed amount. What is the issue if the DD doesn't get taken on weekends? You should know that a payment [to Sky] is due, and keep appropriate funds in your account no later than from the payment due date. Are you using a personal finance planner such as Yolt, Moneydashboard or YNAB? If not, you might want to have a look at using one of them for your budgeting.

    Depending on who you bank with, you might even be entitled to a few pennies cashback when paying by DD.
  • venomx
    venomx Posts: 1,137 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    colsten wrote: »
    Your decision, obviously, how you want to pay. It seems clear to me, though, that paying by DD is a lot safer, as your money won't be taken before a specified date each month, and only up to a pre-agreed amount. What is the issue if the DD doesn't get taken on weekends? You should know that a payment [to Sky] is due, and keep appropriate funds in your account no later than from the payment due date. Are you using a personal finance planner such as Yolt, Moneydashboard or YNAB? If not, you might want to have a look at using one of them for your budgeting.

    Depending on who you bank with, you might even be entitled to a few pennies cashback when paying by DD.

    Fair point.
    If it ever happens again I will change to DD then :beer:

    FYI my bank is Monzo
  • venomx
    venomx Posts: 1,137 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    The only reason I can attribute to this happening is changing my Sky bill date ? It's never happened before in the 7 months i've been with sky and hoping it does not happen again.
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