Credit Limits - or not..?
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Colin6644
Posts: 5 Forumite
If my credit card limit is exceeded in a shop purchase, my card is firmly 'Declined'. Quite right too.
However, I recently made an online purchase by mistake that was approved even though it exceeded my limit by several hundred pounds. This caused all sorts of problems. Lloyds told me that it is up to the merchant to decide whether to take the money from the account, and it it does not need their approval. Any thoughts on this anomaly? Thanks!
However, I recently made an online purchase by mistake that was approved even though it exceeded my limit by several hundred pounds. This caused all sorts of problems. Lloyds told me that it is up to the merchant to decide whether to take the money from the account, and it it does not need their approval. Any thoughts on this anomaly? Thanks!
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Comments
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It depends on the overlimit rules of the card issuer, as well as online/offline transactions. Nothing to do with the merchant.
It's possible to go overlimit on any card.0 -
If my credit card limit is exceeded in a shop purchase, my card is firmly 'Declined'. Quite right too.
However, I recently made an online purchase by mistake that was approved even though it exceeded my limit by several hundred pounds. This caused all sorts of problems. Lloyds told me that it is up to the merchant to decide whether to take the money from the account, and it it does not need their approval. Any thoughts on this anomaly? Thanks!
The bit in bold is obviously not true. It's ultimately up to the bank, although they may not require authorisations for all transactions.
Banks and card providers will often let you exceed your credit limit or overdraft limit, whether paying online or over the internet. I've been glad of it a couple of times in emergencies.0 -
Thanks for responding. What you are saying is the opposite of my experience. Do you have any evidence of the rules on this topic? Are there any?0
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Thanks for responding. How can it be 'obviously not true' when this is what I experienced? You seem very confident. Where are the rules on this?0
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Plenty of evidence from people who complain they were allowed to go overlimit.
None of the lenders I'm aware of have a hard stop at the credit limit. No one wants to be blamed for leaving someone stranded at a petrol station at 2 in the morning.
And of course offline payments are self explanatory.0 -
Thanks for responding. How can it be 'obviously not true' when this is what I experienced? You seem very confident. Where are the rules on this?
It's obviously not true because the merchant doesn't make that decision.
That's not what you experienced - that's what you were told you experienced.0 -
Deleted_User wrote: »It's obviously not true because the merchant doesn't make that decision.
That's not what you experienced - that's what you were told you experienced.
Are you trying to be helpful? It's not working.0 -
Not helpful as in not what you want to hear?0
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Deleted_User wrote: »Plenty of evidence from people who complain they were allowed to go overlimit.
None of the lenders I'm aware of have a hard stop at the credit limit. No one wants to be blamed for leaving someone stranded at a petrol station at 2 in the morning.
And of course offline payments are self explanatory.
Wrong. I have been declined for a few pounds potentially overlimit in a supermarket.
What do you mean: 'offline payments are self-explanatory'? Not helpful.0 -
What do you mean: 'offline payments are self-explanatory'? Not helpful.
It's helpful. But you're going to put in a little effort into understanding. I can't do all the work here.
If the payments are offline, it can't be checked against the credit limit. Therefore it will be approved.0
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