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Credit card over limit fee
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Fighter1986 said:kimwp said:Mickey666 said:How can a merchant charge for a bounced transaction? If the card transaction doesn't go through then there IS no transaction - it's a simple no-sale.
Technically the bank did incur a cost, but you try putting a real-world figure on a few milliseconds of computer time and a few bytes of WAN data. It's beyond infinitessimal.
The question was how can a fee for a bounced transaction be justified - it can be justified because some cost has been incurred. The bank needs to charge enough on all the fees it charges to cover all its costs and generate profit.Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.phpFor free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.0 -
Mickey666 said:How can a merchant charge for a bounced transaction? If the card transaction doesn't go through then there IS no transaction - it's a simple no-sale.I was thinking more along the lines of direct debits, where a mechant is given permission to request a payment but the money isn;t there - but as Grabs39 says, there is also the case of offline card transactions, where the merchant doesn't get a real time authorisation. In both cases the merchant is presumably owed money and has gone to some trouble to request it from the bank.And some banks certainly charge 'unpaid transaction' fees if they decided to bounce a transaction that would take a person over their agreed overdraft limit.My point is that if card issuers more widely introduced systems to prevent people going over their limit by rejecting transactions, as Mickey666 seems ti think would be a good idea, then most likely all that would happen is that the 'over limit' charge would be replaced by a 'bounced transaction' charge. The card issues still get their money, and the customer is no better off financially.3
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DjangoUnchained said:flashg67 said:DjangoUnchained said:write to them complaining and tell them you will take it to the financial ombudsman, ittl cost them hundreds, they will probably refund you. If they dont refund, and the ombudsman doesnt favour you at least youm have the satisfaction of costing them hundreds and wasting their time.
Back to the OP , the card issuers have all the technology to stop the customer going over the limit if they wanted to. if they are going to let him go over the limit they have no moral right to penalize him for doing so. If they want to enforce the penalty, then the customer has the right to appeal it, first with the card, then if they refuse then I hope he takes it to the ombudsman and costs them dearly. If more people did this we would all benefit for a better customer focussed experience.
All the morons who can't do simple addition and subtraction bouncing payments out of their bank accounts left right and centre, going into unauthorised overdrafts and generally having no grip whasoever on their financial life kept on at the ombudsman morning noon and night about bank charges, rather than taking some damn responsibility.
So banks removed them, under order from the regulator, and instead decided to double / trible / quadrouple everyone's standard overdraft APR.
So rather than a few noisy idiots paying for their own crapulence; each and every bank customer is tarred with the same brush now having to pay exorbitant overdraft interest rates if they ever dare dip into an authorised overdraft.
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Mickey666 said:Of course the OP is to blame - I didn't suggest otherwise. In fact, I explicitly stated that they probably have no rights, implying that the card company is within their rights as per the card contract.
I've no idea if the card company will call their bluff and nor do you. But at least I've offered the OP a suggestion which may work. If people don't kick back when things like this happen then we can all be sure that the companies concerned will not give any ground voluntarily. If we do then they might. It worked for me, even though I was clearly in the wrong, so it might work for the OP. Or it might not. But it's up to the OP to decide for themself.0 -
Deleted_User said:Mickey666 said:Of course the OP is to blame - I didn't suggest otherwise. In fact, I explicitly stated that they probably have no rights, implying that the card company is within their rights as per the card contract.
I've no idea if the card company will call their bluff and nor do you. But at least I've offered the OP a suggestion which may work. If people don't kick back when things like this happen then we can all be sure that the companies concerned will not give any ground voluntarily. If we do then they might. It worked for me, even though I was clearly in the wrong, so it might work for the OP. Or it might not. But it's up to the OP to decide for themself.
No big deal.1 -
p00hsticks said:Mickey666 said:How can a merchant charge for a bounced transaction? If the card transaction doesn't go through then there IS no transaction - it's a simple no-sale.I was thinking more along the lines of direct debits, where a mechant is given permission to request a payment but the money isn;t there - but as Grabs39 says, there is also the case of offline card transactions, where the merchant doesn't get a real time authorisation. In both cases the merchant is presumably owed money and has gone to some trouble to request it from the bank.And some banks certainly charge 'unpaid transaction' fees if they decided to bounce a transaction that would take a person over their agreed overdraft limit.My point is that if card issuers more widely introduced systems to prevent people going over their limit by rejecting transactions, as Mickey666 seems ti think would be a good idea, then most likely all that would happen is that the 'over limit' charge would be replaced by a 'bounced transaction' charge. The card issues still get their money, and the customer is no better off financially.
Some banks will stop anything that takes you over your limit. But that tends not to be the norm, has come into play more now with the change in overdraft rates.
Banks like to give customers some freedom and with the ability now that you do not get charged for going over your limit, so long as the account is back in the black by the end of the day. More people do it to earn a bit of interest on their savings.
Also many people are not aware that if you have money in your account, then the bank can not stop you getting it. Even it it takes you over your limit.
So say you have £5 in your account, but the ATM only gives £10 then they have to let you take the £10. Which is also another reason why most banks have a buffer zone where you do not get charged for being overlimit.Life in the slow lane0 -
born_again said:p00hsticks said:Mickey666 said:How can a merchant charge for a bounced transaction? If the card transaction doesn't go through then there IS no transaction - it's a simple no-sale.I was thinking more along the lines of direct debits, where a mechant is given permission to request a payment but the money isn;t there - but as Grabs39 says, there is also the case of offline card transactions, where the merchant doesn't get a real time authorisation. In both cases the merchant is presumably owed money and has gone to some trouble to request it from the bank.And some banks certainly charge 'unpaid transaction' fees if they decided to bounce a transaction that would take a person over their agreed overdraft limit.My point is that if card issuers more widely introduced systems to prevent people going over their limit by rejecting transactions, as Mickey666 seems ti think would be a good idea, then most likely all that would happen is that the 'over limit' charge would be replaced by a 'bounced transaction' charge. The card issues still get their money, and the customer is no better off financially.
Some banks will stop anything that takes you over your limit. But that tends not to be the norm, has come into play more now with the change in overdraft rates.
Banks like to give customers some freedom and with the ability now that you do not get charged for going over your limit, so long as the account is back in the black by the end of the day. More people do it to earn a bit of interest on their savings.
Also many people are not aware that if you have money in your account, then the bank can not stop you getting it. Even it it takes you over your limit.
So say you have £5 in your account, but the ATM only gives £10 then they have to let you take the £10. Which is also another reason why most banks have a buffer zone where you do not get charged for being overlimit.0 -
Mickey666 said:
But you will be surprised at what people moan about...
HSBC is a bit more generous.
>>An interest-free buffer for extra peace of mindMost of our accounts (excluding Basic Bank Account) come with safety buffer of £25 or more. So if a payment takes you a few pounds overdrawn, you won’t face interest or charges.
<<Life in the slow lane0 -
Fighter1986 said:DjangoUnchained said:flashg67 said:DjangoUnchained said:write to them complaining and tell them you will take it to the financial ombudsman, ittl cost them hundreds, they will probably refund you. If they dont refund, and the ombudsman doesnt favour you at least youm have the satisfaction of costing them hundreds and wasting their time.
Back to the OP , the card issuers have all the technology to stop the customer going over the limit if they wanted to. if they are going to let him go over the limit they have no moral right to penalize him for doing so. If they want to enforce the penalty, then the customer has the right to appeal it, first with the card, then if they refuse then I hope he takes it to the ombudsman and costs them dearly. If more people did this we would all benefit for a better customer focussed experience.
All the morons who can't do simple addition and subtraction bouncing payments out of their bank accounts left right and centre, going into unauthorised overdrafts and generally having no grip whasoever on their financial life kept on at the ombudsman morning noon and night about bank charges, rather than taking some damn responsibility.
So banks removed them, under order from the regulator, and instead decided to double / trible / quadrouple everyone's standard overdraft APR.
So rather than a few noisy idiots paying for their own crapulence; each and every bank customer is tarred with the same brush now having to pay exorbitant overdraft interest rates if they ever dare dip into an authorised overdraft.0 -
DjangoUnchained said:Fighter1986 said:DjangoUnchained said:flashg67 said:DjangoUnchained said:write to them complaining and tell them you will take it to the financial ombudsman, ittl cost them hundreds, they will probably refund you. If they dont refund, and the ombudsman doesnt favour you at least youm have the satisfaction of costing them hundreds and wasting their time.
Back to the OP , the card issuers have all the technology to stop the customer going over the limit if they wanted to. if they are going to let him go over the limit they have no moral right to penalize him for doing so. If they want to enforce the penalty, then the customer has the right to appeal it, first with the card, then if they refuse then I hope he takes it to the ombudsman and costs them dearly. If more people did this we would all benefit for a better customer focussed experience.
All the morons who can't do simple addition and subtraction bouncing payments out of their bank accounts left right and centre, going into unauthorised overdrafts and generally having no grip whasoever on their financial life kept on at the ombudsman morning noon and night about bank charges, rather than taking some damn responsibility.
So banks removed them, under order from the regulator, and instead decided to double / trible / quadrouple everyone's standard overdraft APR.
So rather than a few noisy idiots paying for their own crapulence; each and every bank customer is tarred with the same brush now having to pay exorbitant overdraft interest rates if they ever dare dip into an authorised overdraft.Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.phpFor free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.5
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