Credit Limits - or not..?

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Colin6644
Colin6644 Posts: 5 Forumite
in Stoozing: free cash from credit cards
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!
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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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.
  • shortcrust
    shortcrust Posts: 2,697 Forumite
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    Colin6644 wrote: »
    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.
  • Colin6644
    Colin6644 Posts: 5 Forumite
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    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?
  • Colin6644
    Colin6644 Posts: 5 Forumite
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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?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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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.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Colin6644 wrote: »
    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.
  • Colin6644
    Colin6644 Posts: 5 Forumite
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    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.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    Not helpful as in not what you want to hear?
  • Colin6644
    Colin6644 Posts: 5 Forumite
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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.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Colin6644 wrote: »
    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.
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