Monzo users double charged at Tesco after technical error - but you can reverse the transaction

MSE_Emily

Monzo users shopping at Tesco stores across the country may have been charged twice after a technical error. Tesco says it is investigating and adds that it aims to reverse duplicate transactions within a day. Affected Monzo customers can also reverse payments via its banking app. Here's what's happened...

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Monzo users double charged at Tesco after technical error - but you can reverse the transaction

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[Deleted User]

One of Twitter comments says 'debited immediately' - are Monzo misrepresenting authorisations as actual debits?

[Deleted User]

Deleted User said:

One of Twitter comments says 'debited immediately' - are Monzo misrepresenting authorisations as actual debits?

The modern fintech banks show transactions in the app immediately and deduct the pending amount from your balance even though like you say it's only an authorisation and not an actual debit yet.

This is what sets apart the modern fintech banks from the old high street dinosaurs who don't show transactions for days after the event.

Although it's all made clear what is an actual debit and what is only pending when you view/download a statement (which not everyone does with Monzo/Starling).

colsten

Deleted_User said: 

 .

This is what sets apart the modern fintech banks from the old high street dinosaurs who don't show transactions for days after the event.

Provided there is a connection between the retailer and the dinosaur bank (which exists as frequently as one exists for the fin techs), my dinosaur Halifax and Santander accounts show debit card spends as pending immediately. They also show me a balance with, and a balance without pending. I haven’t used a debit card with Lloyds or BOS recently but am 99.9% certain they do exactly as Halifax does.

Same applies to my Halifax, Nationwide and Barclaycard credit cards.

May be the fintechs had an advantage in this regard a few years ago but not now. What some people consider an advantage is the instant notification Monzo etc send you for each purchase/spend. Personally, I find those notifications an irritant as I can remember that I used my card two seconds ago, and I am not overly concerned about fraudsters using any of my cards as they are all safely locked away in my home safe (ApplePay user). Granted, it would take me a bit longer to spot a double-charge, like the Tesco one but spot them I would on my weekly reconciliation, and such occurrences are exceedingly rare, anyway.

northwalesd

colsten said:

Deleted_User said: 

 .

This is what sets apart the modern fintech banks from the old high street dinosaurs who don't show transactions for days after the event.

Provided there is a connection between the retailer and the dinosaur bank (which exists as frequently as one exists for the fin techs), my dinosaur Halifax and Santander accounts show debit card spends as pending immediately. They also show me a balance with, and a balance without pending. I haven’t used a debit card with Lloyds or BOS recently but am 99.9% certain they do exactly as Halifax does.

Same applies to my Halifax, Nationwide and Barclaycard credit cards.

May be the fintechs had an advantage in this regard a few years ago but not now. What some people consider an advantage is the instant notification Monzo etc send you for each purchase/spend. Personally, I find those notifications an irritant as I can remember that I used my card two seconds ago, and I am not overly concerned about fraudsters using any of my cards as they are all safely locked away in my home safe (ApplePay user). Granted, it would take me a bit longer to spot a double-charge, like the Tesco one but spot them I would on my weekly reconciliation, and such occurrences are exceedingly rare, anyway.

Lloyds certainly does, can't comment on BOS as I don't have an account, but would expect them to do likewise. Both Llloyds and Halifax also have the 'irritating' (fairly) instant notifications of devit card use, but you can turn those on or off as you see fit. So even less differentiation between Fintech and 'dinosaur' bank.

[Deleted User]

RBS didn't a few years ago up until I left them for Starling. It would just lump all transactions into one large pending amount and tell you what they were all for until they fully cleared one by one over a couple of days.

WillPS

colsten said:

Deleted_User said: 

 .

This is what sets apart the modern fintech banks from the old high street dinosaurs who don't show transactions for days after the event.

Provided there is a connection between the retailer and the dinosaur bank (which exists as frequently as one exists for the fin techs), my dinosaur Halifax and Santander accounts show debit card spends as pending immediately. They also show me a balance with, and a balance without pending. I haven’t used a debit card with Lloyds or BOS recently but am 99.9% certain they do exactly as Halifax does.

Same applies to my Halifax, Nationwide and Barclaycard credit cards.

May be the fintechs had an advantage in this regard a few years ago but not no. What some people consider an advantage is the instant notification Monzo etc send you for each purchase/spend. Personally, I find those notifications an irritant as I can remember that I used my card two seconds ago, and I am not overly concerned about fraudsters using any of my cards as they are all safely locked away in my home safe (ApplePay user). Granted, it would take me a bit longer to spot a double-charge, like the Tesco one but spot them I would on my weekly reconciliation, and such occurrences are exceedingly rare, anyway.

I agree with most of this - but you shouldn't assume that just because your cards are locked away it is impossible for anybody to attempt to use them.

Somebody once attempted to deposit £500 on a gambling website using a never-used (online or offline), left-at-home Nationwide Debit Card of mine, and the only indication I had was a Nationwide text telling me the transaction had been declined because the account was empty.

colsten

Agree, there is no guarantee but the risk for me is, IMO, so low that I don't feel I have to be constantly reminded of the 99.99% of valid transactions. YMMV.