Chip and Pin and transaction security

chrisjj_2

Last month I tried to pay an overseas hotel using my C&P First Direct VISA
card, entering the PIN, but was told by the merchant "your bank declined
the authorisation" and received the DECLINED slip.

I phoned FD, who assured me they'd not declined or even received any
authorisation request that day, and I asked them to note this on my file.

I returned to the hotel desk and offered my card again, entering the PIN
again, and payment was accepted. But when my card bill arrived, I'd been
charged twice. The merchant claimed the second charge is "probably" due to
a second stay and refused to refund.

I demanded a refund from FD, but they refused, saying their position is
that both transactions were genuine because both had been authorised by
C&P, and refusing to budge. This despite them acknowledging they told me
that they had not authorised the first transaction.

So, what should a C&P-suffering card user do to avoid this nonsense?

In this case I told the FD to close the account and expect me to pursue
recovery in court. Two days later, the (unclosed) account received a
refund of the disputed amount and the hotel contacted me to apologies for
the error in processing by "Eureconnex systems" (sic).

Chris

NickX

chrisjj wrote: »

Last month I tried to pay an overseas hotel using my C&P First Direct VISA
card, entering the PIN, but was told by the merchant "your bank declined
the authorisation" and received the DECLINED slip.

I phoned FD, who assured me they'd not declined or even received any
authorisation request that day, and I asked them to note this on my file.

I returned to the hotel desk and offered my card again, entering the PIN
again, and payment was accepted. But when my card bill arrived, I'd been
charged twice. The merchant claimed the second charge is "probably" due to
a second stay and refused to refund.

I demanded a refund from FD, but they refused, saying their position is
that both transactions were genuine because both had been authorised by
C&P, and refusing to budge. This despite them acknowledging they told me
that they had not authorised the first transaction.

So, what should a C&P-suffering card user do to avoid this nonsense?

In this case I told the FD to close the account and expect me to pursue
recovery in court. Two days later, the (unclosed) account received a
refund of the disputed amount and the hotel contacted me to apologies for
the error in processing by "Eureconnex systems" (sic).

Chris

Sounds like you sorted it, but I would have disputed the "failed" transaction with FD as fraudulent. They have to follow a procedure once you report a transaction as fraudulent.

It sounds as though you got the "brush off" from some unhelpful CS rep when you first tried to report this.

Well Done on getting it refunded.

skyrider007

May I ask what country you were in? Maestro card is not globally accepted for point of sale purchases (although it's fine for withdrawing cash).

chrisjj_2

> Sounds like you sorted it,

Having to close the card account is not an acceptable solution.

> I would have disputed the "failed" transaction with FD as fraudulent.

I did.

> They have to follow a procedure once you report a transaction as
> fraudulent.

Thanks, but I think not. They refused to accept my report of fraud, citing as grounds the fact that the entry of PIN meant there was no fraud.

> It sounds as though you got the "brush off" from some unhelpful CS rep
> when you first tried to report this

The brush off I got was from the First Direct Fraud Dept.

chrisjj_2

> May I ask what country you were in?

Germany.

> Maestro card is not globally accepted for point of sale purchases

Agreed. As I reported, this card was VISA.

NickX

I agree that you have received unhelpful and shoddy service from First Direct. Closing the card to force them to act is not good enough.

If you are feeling very annoyed about this you could make a formal complaint to them, and even if that does not produce satisfactory results then you have the right to go to the banking ombudsman, but only once you have exhausted the First Direct complaints procedure.

chrisjj_2

> If you are feeling very annoyed about this

I'm not. I'm simply seeking a way to avoid this in future. I didn't suffer this risk before C&P and would like not to again.

dellwear

The risk wasn't here in this case - you were just badly advised - happened every day before and after CnP was introduced.

If you'd been given the correct info then you would have been able to dispute the first transaction (the one you have the decline slip for) and get the money back.

In this instance you weren't told this - nothing to do with CnP but to do with bank staff not following the correct procedure.