Merchant hasn't received my debited payment

lowbbbbbbb

Hello! Recently I tried to make a payment for a product with Halifax over the phone but I was told that the payment wasn't successful. I tried both my HSBC and Lloyds debit cards, both failed. However, later I noticed the amount is debited from both my HSBC and Lloyds account, pending and later confirmed. I asked Halifax but they said the payment didn't go through on their side. I checked with HSBC and Lloyds. Both said the amount is debited. Now I am worried where my money went. Lloyds said if Halifax doesn't take the money, it should be returned to me in around 5 days. Anyone had similar experience before? I want to try making payment again with Halifax to speed things up but am worried it will fail again. Thank you!

itsthelittlethings

Sometimes it’s pending and gets reversed a few days later.

p00hsticks

I'm assuming that 'Halifax' is the merchant in this case, rather than the one of the cards you used ?
In your shoes I'd ask Halifax if they can say WHY the payment didn't go through their side - or , if both banks are insistent that the payment did go through and is not just pending - following it up further with Halifax.  

from memory, having worked in merchant acquiring a few decades ago, the process should go something like this.

1. You present your card to the merchant for payment
2. The merchant can (but not always) request an authorisation from the card issuer to confirm that the card is not stolen, funds are available etc
3. If the card issuer does not want the transaction to go ahead it will let the merchant know and the transaction will be declined. 
4. If the card issuer is happy for the transaction to go ahead, it will send an authorisation code back to the merchant and ringfence the funds requested as a pending transaction, deducting them from your 'available balance'.     
5. Having received a positive authorisation back, the merchant can still choose whether to accept or decline the transaction. Note - that from memory the most common reason for a merchant declining a transaction at this point is if the bank  sends back as part of the authorisation an indication that the address digits (house number & postcode digits) on file do not match what the merchant has sent across. 
6. If the merchant accepts the transaction, then they'll send the details to their merchant acquirer - either straight away or overnight - who will in turn pass it to the relevant card company (Visa, Mastercard, Amex etc) and through them to the card issuer. Once the issuer gets those details, and if they match the details on the original authorisation then the pending transaction becomes confirmed and the funds are debited from your account. Note - this is where there are sometimes problems with things like grocery shopping where an authorisation is obtained in advance, but when delivered the final amount does not match the authorisation amount. The card issuer therefore fails to pair up the auth with the transaction, deducting the actual transaction amount but also leaving the ringfenced authorisation amount pending. 
7. If within a week or so the card issuer does has not received transaction details that match the original authorisation then the 'pending transaction' is dropped and the amount restored to your available balance. 

lowbbbbbbb

p00hsticks said:

I'm assuming that 'Halifax' is the merchant in this case, rather than the one of the cards you used ?
In your shoes I'd ask Halifax if they can say WHY the payment didn't go through their side - or , if both banks are insistent that the payment did go through and is not just pending - following it up further with Halifax.  

from memory, having worked in merchant acquiring a few decades ago, the process should go something like this.

1. You present your card to the merchant for payment
2. The merchant can (but not always) request an authorisation from the card issuer to confirm that the card is not stolen, funds are available etc
3. If the card issuer does not want the transaction to go ahead it will let the merchant know and the transaction will be declined. 
4. If the card issuer is happy for the transaction to go ahead, it will send an authorisation code back to the merchant and ringfence the funds requested as a pending transaction, deducting them from your 'available balance'.     
5. Having received a positive authorisation back, the merchant can still choose whether to accept or decline the transaction. Note - that from memory the most common reason for a merchant declining a transaction at this point is if the bank  sends back as part of the authorisation an indication that the address digits (house number & postcode digits) on file do not match what the merchant has sent across. 
6. If the merchant accepts the transaction, then they'll send the details to their merchant acquirer - either straight away or overnight - who will in turn pass it to the relevant card company (Visa, Mastercard, Amex etc) and through them to the card issuer. Once the issuer gets those details, and if they match the details on the original authorisation then the pending transaction becomes confirmed and the funds are debited from your account. Note - this is where there are sometimes problems with things like grocery shopping where an authorisation is obtained in advance, but when delivered the final amount does not match the authorisation amount. The card issuer therefore fails to pair up the auth with the transaction, deducting the actual transaction amount but also leaving the ringfenced authorisation amount pending. 
7. If within a week or so the card issuer does has not received transaction details that match the original authorisation then the 'pending transaction' is dropped and the amount restored to your available balance. 

Thank you for the explanation. Halifax indeed is the merchant here. When I made my payment with Halifax over the phone, the agent immediately said the payment failed, hence I tried another card, still failed. I thought I can try later, and in the evening I noticed they were both deducted. I am wondering if it's because the payments weren't successful on Halifax's side at the beginning, so they don't have an "awaiting payment" to receive the money from HSBC and Lloyds. So the money now is hanging in the middle. Is it how it works? 

I always assumed, when the payment is pending,  it's in the process of going to the merchant's bank. When it's debited from my account, it's already there. As this is within UK, I thought payment is straightforward and instant. 

Thank you for your advice:)