Credit Card transaction refused Credit lint lowerd for 13 hours
jevoudrais
Posts: 42 Forumite
The amounts here are too trivial to warrant any action but I'd be interested in comments.
Yesterday I was chatting to the FOS getting advice in advance of contacting an insurance company and I'm pleased that their advice was great and the insurance company without mentioning the FOS are doing the right thing now.
While chatting with the FOS I asked a question about using a credit card on a self service petrol pump.
I put the card in the pump but entered the incorrect pin it was declined. So I went a couple of miles home to get another card. On picking uo the other card i remembered id used an old pin previously.
That evening looking at credit card online it showed a pending deduction of a £1 which had lowered my credit limit by £1. I guess this is part of the processing.
The FOS person said actually may have a case that they would look at. I was astonished (before i get flamed I am not going to make a case this is for discussion for those who want to)
They said as a result of you inserting your card your credit limit was reduced by £1 for a period of 12 hours till the £1 disappeared for example.
Whether this is reflected by credit score places or not I do not know and my guess is probably not?
I cannot imagine this is something the credit card company and the Sainsburys petrol station have done wrong.
Yesterday I was chatting to the FOS getting advice in advance of contacting an insurance company and I'm pleased that their advice was great and the insurance company without mentioning the FOS are doing the right thing now.
While chatting with the FOS I asked a question about using a credit card on a self service petrol pump.
I put the card in the pump but entered the incorrect pin it was declined. So I went a couple of miles home to get another card. On picking uo the other card i remembered id used an old pin previously.
That evening looking at credit card online it showed a pending deduction of a £1 which had lowered my credit limit by £1. I guess this is part of the processing.
The FOS person said actually may have a case that they would look at. I was astonished (before i get flamed I am not going to make a case this is for discussion for those who want to)
They said as a result of you inserting your card your credit limit was reduced by £1 for a period of 12 hours till the £1 disappeared for example.
Whether this is reflected by credit score places or not I do not know and my guess is probably not?
I cannot imagine this is something the credit card company and the Sainsburys petrol station have done wrong.
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Comments
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Your limit was not reduced.
Your credit availability was reduced.
This is not a story.0 -
Thank you marliepanda for those form of words.marliepanda wrote: »Your limit was not reduced.
Your credit availability was reduced.
This is not a story.0 -
I'd guess the FOS person isn't very familiar with credit cards - this is called 'pre-authorisation'.
Sainsburys mention it on their website: https://help.sainsburys.co.uk/help/stores/faq-pay-at-pump
The same can happen when you check-in at a hotel or hire a car - but the pre-authorisation amounts are much higher.0 -
Thank for this so in a scenario so say if you had £150 left available on your CC limit and you book into a hotel and they do a pre authourisation of £95 does that means that your available credit has dropped to £55 ?I'd guess the FOS person isn't very familiar with credit cards - this is called 'pre-authorisation'. (new user had to remove sainsburys link)
The same can happen when you check-in at a hotel or hire a car - but the pre-authorisation amounts are much higher.0 -
jevoudrais wrote: »Thank for this so in a scenario so say if you had £150 left available on your CC limit and you book into a hotel and they do a pre authourisation of £95 does that means that your available credit has dropped to £55 ?
That is correct.0 -
So really the pre athorisation will affect your available credit limit but if there are terms and conditions at the petrol station or Hotel then OK ?0
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jevoudrais wrote: »So really the pre athorisation will affect your available credit limit but if there are terms and conditions at the petrol station or Hotel then OK ?
Your credit limit is not affected - your balance is increased and available credit is lowered.
The £1 will get released in a day or 20 -
I was recently at a petrol station near Ashby-de-la-Zouch when I saw some old guy giving the petrol station attendant a lot of grief over some perceived breach of T&C's relating to pre-pump authorisation.... I find it awfully strange that people don't know how to use their cards in the correct manner...
It's as if they think credit card holds are a new thing...0 -
I was recently at a petrol station near Ashby-de-la-Zouch when I saw some old guy giving the petrol station attendant a lot of grief over some perceived breach of T&C's relating to pre-pump authorisation.... I find it awfully strange that people don't know how to use their cards in the correct manner...
It's as if they think credit card holds are a new thing...
A good point its difficult to find a petrol station that has gloves to protect your hands. I usually avoid and the smell of petrol on my hands
Thinking back probably credit cards were out before debit cards. Did debit cards come on the back of cheque guarantee cards ?0 -
This discussion has been closed.
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