Pending Transaction - Nationwide

jlunkgsy

Hi, new member here! O/

Issue is as follows;

I placed an order on Amazon for £665.83 (£74.99 of which was gift card balance) on Friday 9th July. I contacted Amazon to cancel the order Sunday 11th July. This was fine, Amazon cancelled the order and my gift card balance was made available pretty much instantly. They said as the item hadn’t shipped I wouldn’t be charged, though my bank may have put an authorisation hold on the amount (£590.84).

This isn’t something new to me, however in the past when I have cancelled an order, the money is usually available to me 24 hours afterwards. This time though, it is still showing as a pending transaction (Wednesday 14th July). Amazon gave me a transaction ID as well as a settlement verification code. I contacted Nationwide who informs me they don’t use settlement verification codes and all the ID does is locate the transaction. They said a pending transaction will stay pending for 7 days whereby it will “drop off” if the merchant hasn’t claimed the funds, although the merchant will have 180 days to claim the funds. They said the 7th day is this Friday 16th July, so the money will be available to me then.

- why is it taking so long for this transaction to drop off when previously its been much quicker?

- What time on the 7th day would the funds be available? 

- Why won’t Nationwide release my money any quicker even though I have proof from Amazon that they’ve cancelled the order?

- What if the money isn’t available on the 16th, what the heck would I do then?

just slightly miffed, it’s my money, order had been cancelled , confirmed by the merchant, yet I have to wait?

born_again

If it's a visa debit card then it is actually a max of 14 days or 10 working days. Most do drop off a lot quicker.
If it has not dropped of by the time Nationwide have stated then you need to go back to them and they will deal. 
There is a way to remove the outstanding hold on the money, to make it avaiable to you, but does not remove the authorisation from debiting if the retailer fully takes the funds. ( I take it that they have a system to do this, as they should under Payment Services Directive)

jlunkgsy

born_again said:

If it's a visa debit card then it is actually a max of 14 days or 10 working days. Most do drop off a lot quicker.
If it has not dropped of by the time Nationwide have stated then you need to go back to them and they will deal. 
There is a way to remove the outstanding hold on the money, to make it avaiable to you, but does not remove the authorisation from debiting if the retailer fully takes the funds. ( I take it that they have a system to do this, as they should under Payment Services Directive)

Just don’t understand why I’m having this issue now when I’ve never had that before. It’s very strange and I won’t be happy if I don’t have it back by this Friday.

It states as following on Nationwide’s website;

We will remove a pending transaction if it hasn't been taken within 7 days

We’ll stop reserving the money after 7 days, so that the money is available for you to spend. The pending transaction will no longer show in your account and your available balance will go back up.

However, it’s a good idea to keep enough money in your account to cover the payment. That’s because some can take up to 120 days to go through. So, the money could still be taken at a later date.

Nationwide told me it would go back into my available balance this Friday (16th) but could that be literally any time on that day?

MalMonroe

I'm with Nationwide. It isn't strange and you will get your money back. Normally when things like that have happened to me, it's because the sum has been larger than my usual expenditure and they probably want to check that I've not been laundering, or something, when the amount has been returned. 

Yes, it could be returned at literally any time but my repayments have usually been made shortly after midnight.

Amazon is a different kettle of fish altogether. They cancel and refund almost immediately, as you have discovered. But they are not a bank. 

colsten

jlunkgsy said:

We will remove a pending transaction if it hasn't been taken within 7 days

That will be 7 working days, so 16th sounds about right

jlunkgsy said:

Nationwide told me it would go back into my available balance this Friday (16th) but could that be literally any time on that day?

You really need to ask Nationwide. They may or may not be processing this during the day. If they process it overnight, it could be that the pending transaction gets cancelled overnight from 15th to 16th, or overnight from 16th to 17th. If the latter, you may not see it until the 19th, due to the weekend.

jlunkgsy

MalMonroe said:

I'm with Nationwide. It isn't strange and you will get your money back. Normally when things like that have happened to me, it's because the sum has been larger than my usual expenditure and they probably want to check that I've not been laundering, or something, when the amount has been returned. 

Yes, it could be returned at literally any time but my repayments have usually been made shortly after midnight.

Amazon is a different kettle of fish altogether. They cancel and refund almost immediately, as you have discovered. But they are not a bank. 

It’s not dramatically over what I would normally spend - No criminal mastermind here!😂

born_again

colsten said:. They may or may not be processing this during the day. If they process it overnight, it could be that the pending transaction gets cancelled overnight from 15th to 16th, or overnight from 16th to 17th. If the latter, you may not see it until the 19th, due to the weekend.

It all down to when Amazons merchant bank remove the auth from the system. That then filters through to Nationwide. Unless Nationwide physically remove it themselves. But while that puts the funds back as available to the OP. It does not remove the authorisation from the system.

jlunkgsy

born_again said:

colsten said:. They may or may not be processing this during the day. If they process it overnight, it could be that the pending transaction gets cancelled overnight from 15th to 16th, or overnight from 16th to 17th. If the latter, you may not see it until the 19th, due to the weekend.

It all down to when Amazons merchant bank remove the auth from the system. That then filters through to Nationwide. Unless Nationwide physically remove it themselves. But while that puts the funds back as available to the OP. It does not remove the authorisation from the system.

I spoke to Nationwide again today who said they can’t release the money any sooner UNLESS Amazon either emails or fax through an official headed letter stating transaction date, transaction amount, transaction ID, authorisation code as well as my full name and postcode and state that they will not be attempting to collect payment. Even if Amazon did send that through, processing time would be up to 2 working days which in my case would be useless. They said that the 7th day is tomorrow (16th) and the money will automatically drop off at midnight, meaning it will be available for me to use Saturday (17th). I asked well what if it doesn’t, to which I was told it definitely will, it’s an automatic process. So guess I’ll sit tight and see whether Nationwide comes through.

Amazon wouldn’t send a letter to Nationwide until 14 days has passed the original transaction date, don’t know why but that’s what their billing department said.

jlunkgsy

Pleased to report the money has just dropped back into my available balance. Still strange, never had this happen before but at least I now know.

mab3000

This is why I always use a credit card to pay for something online or for something high value, as if this happens and the transaction is stuck pending for a while, it’s not my money that is being reserved. 

lindabea

mab3000 said:

This is why I always use a credit card to pay for something online or for something high value, as if this happens and the transaction is stuck pending for a while, it’s not my money that is being reserved. 

I don't quite follow your reasoning here - I think it is still your money that is being reserved, although from your credit limit.   If the pending transaction does eventually go through, it does become your money, and if you don't agree with the trans, it is your responsibility to sort it out. 

I would not advise anyone that a pending transaction is not your money.  If you authorised it, then it's your money and your obligation.