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  • FIRST POST
    • stclair
    • By stclair 8th May 18, 3:17 PM
    • 6,499Posts
    • 3,444Thanks
    stclair
    Asda Pay Pumps
    • #1
    • 8th May 18, 3:17 PM
    Asda Pay Pumps 8th May 18 at 3:17 PM
    I couldnít see itís been covered already but this is an interesting article.

    Asda taking a £99.00 pre authorisation hold when you use a pay pump.

    https://dailym.ai/2I03pOj
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
Page 2
    • eskbanker
    • By eskbanker 9th May 18, 5:34 PM
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    eskbanker
    But who cares if it's £99?, if you're that close financially then you have other issues to deal with.
    Originally posted by eschaton
    Nice - let them eat cake, eh?

    That was a crass and unnecessary comment you made - there are many people for whom routine (and arguably unnecessary) reservation of £99 from available funds is indeed a big issue, of course especially so if they have other cashflow problems to contend with, so it wouldn't surprise me if some found your sneering remark offensive or insensitive....
    • robatwork
    • By robatwork 9th May 18, 6:39 PM
    • 4,693 Posts
    • 5,264 Thanks
    robatwork
    The BBC have now got hold of this story. The protagonist declares:

    "All I wanted to do was top up my almost full tank, because having two children, you never know when you'll need it," she told the BBC.

    "Anything could happen over the next few weeks that might mean I can't afford to put fuel in, so as a precaution to make sure I can get me and my children from A to B, I sometimes top up silly amounts like £5 to keep it at full."


    Bizarre - I imagine if something happened to mean she couldn't afford to put fuel in, it would be more important to have the cash around to feed her kids/get a taxi to hospital.
    • eskbanker
    • By eskbanker 10th May 18, 12:02 AM
    • 8,456 Posts
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    eskbanker
    Asda's trial of this £99 preauthorisation charge (in Dewsbury, Barry and Widnes only) has now been suspended after the negative publicity, according to https://www.moneysavingexpert.com/news/travel/2018/05/asda-suspends-trial-of-99-card-charge-for-pay-at-the-pump-customers
    • OceanSound
    • By OceanSound 10th May 18, 2:42 AM
    • 491 Posts
    • 90 Thanks
    OceanSound
    Asda's trial of this £99 preauthorisation charge (in Dewsbury, Barry and Widnes only) has now been suspended after the negative publicity, according to https://www.moneysavingexpert.com/news/travel/2018/05/asda-suspends-trial-of-99-card-charge-for-pay-at-the-pump-customers
    Originally posted by eskbanker
    Must admit seemed very bizarre when I first read about this. I mean what if you are a moped user putting a few quid petrol each time. E.g. deliveroo driver, just about making ends meet.
    Is the technology not available so it only pre-authorises the amount of petrol you want to put in? Suppose then you cannot change your mind after making selection, but can always start fresh transaction, no?
    • unforeseen
    • By unforeseen 10th May 18, 5:57 AM
    • 3,104 Posts
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    unforeseen
    If places want to use pre-auth then they should have a method of billing the account with the correct amount and removing the pre-auth as soon as the true figure is known. I. E. Within minutes of leaving the pump.

    I understand they want to cover their a**e but they should not be using a system that screws people up.
    • fernandes
    • By fernandes 10th May 18, 6:52 AM
    • 30 Posts
    • 61 Thanks
    fernandes
    I'm surprised that none of the news articles have picked up on this (and simply allowed ASDA's narrative about "doing the right thing" in removing the charges) but this isn't just bad customer experience - it's flat out illegal since January under the new EU payment laws (PSD2 - the same ones that ban surcharging).

    ASDA has implied collaboration with Visa and MasterCard on their approach to pre-authorisation for un-manned petrol pumps and I'm not clear how they've interpreted the law (the card schemes have not actually commented in this story to my knowledge) but to paraphrase the PSD2 rules themselves:

    "The payee will only be allowed to block funds on the account of the payer if the payer has approved the exact amount that can be blocked"
    It doesn't sound like any affected customer was told in advance their card would have a £99 hold, therefore ASDA were breaking the law, their decision to review / act in customer interest doesn't come into it.

    https://twitter.com/r!!!775/status/994452414982959104
    Last edited by fernandes; 10-05-2018 at 6:55 AM.
    • 18cc
    • By 18cc 10th May 18, 9:08 AM
    • 858 Posts
    • 580 Thanks
    18cc
    Well it's not as simple as that ...

    supposing you had £150 in your bank account and were expecting your mobile phone bill for next-day to be direct debited let's say £60


    ok you fill up with £40 worth of petrol today leaving 110 more than enough to pay your phone bill not knowing that another £99 has been reduced from the available balance and your phone direct debit will bounce
    • tempus_fugit
    • By tempus_fugit 10th May 18, 11:11 AM
    • 527 Posts
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    tempus_fugit
    First of all you don't get charged for a "block" on your card. It's just a block that reserves part of your credit for use to pay for your goods and services. They use it even in restaurants in America, but it's not a charge and it won't affect what you have to pay on your statement at the end of the month.

    Secondly, why can't we do what they do in America for petrol, where you request a block on your account for a specific amount before you get your petrol, then you use the pump and it stops automatically when you reach the specified amount. It took us by surprise when we first came across it but you soon got used to it and it seemed to work very well. If they can do it, we can.
    Retired at age 56 after having "light bulb moment" due to reading MSE and its forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
    • fernandes
    • By fernandes 10th May 18, 11:55 AM
    • 30 Posts
    • 61 Thanks
    fernandes
    First of all you don't get charged for a "block" on your card. It's just a block that reserves part of your credit for use to pay for your goods and services.
    Originally posted by tempus_fugit
    A block on a DEBIT card will reserve funds against your bank balance until that block is then released by the merchant. If you are regularly short of money and dependent on those same funds to cover other critical expenses (bills, cash), then any issues between ASDA and your bank in promptly releasing that block, will result in you being broke until the natural release / expiry of the block several days later.

    This is why customers are upset, it simply isn't an acceptable way to operate.
    • Uxb
    • By Uxb 10th May 18, 12:44 PM
    • 1,240 Posts
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    Uxb
    This is why customers are upset, it simply isn't an acceptable way to operate.
    Originally posted by fernandes
    Many hotels have been doing this for years - the earliest I can remember it being done to me by an hotel is in the late 1980's.
    The difference now is that it is being applied to a much wider section of the population and those don't have a buffer available - or a credit card with a large-ish limit.
    • joncombe
    • By joncombe 10th May 18, 12:53 PM
    • 267 Posts
    • 108 Thanks
    joncombe
    Why does this only apply to pay at the pump? I've never been asked to prove I have sufficient funds before filling up when paying in the shop, so why do it for pay at pump?
    • OceanSound
    • By OceanSound 10th May 18, 1:39 PM
    • 491 Posts
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    OceanSound
    Many hotels have been doing this for years......
    Originally posted by Uxb
    That's for incidentals, like, if you choose to raid the minibar in a drunken stupor.
    • Heng Leng
    • By Heng Leng 10th May 18, 3:03 PM
    • 4,639 Posts
    • 1,492 Thanks
    Heng Leng
    Many hotels have been doing this for years - the earliest I can remember it being done to me by an hotel is in the late 1980's.
    The difference now is that it is being applied to a much wider section of the population and those don't have a buffer available - or a credit card with a large-ish limit.
    Originally posted by Uxb
    The system wasn't designed with debit cards in mind. It was designed to be used with a credit/charge card where it's normally not an issue.

    I had a Solo card on a Savings account many moons ago and (with solo only) ASDA used to reserve a fixed amount (£30, I think) and suggested you fill up to that limit - that would be an obvious option.
    • soulsaver
    • By soulsaver 10th May 18, 3:07 PM
    • 2,118 Posts
    • 968 Thanks
    soulsaver
    Why does this only apply to pay at the pump? I've never been asked to prove I have sufficient funds before filling up when paying in the shop, so why do it for pay at pump?
    Originally posted by joncombe
    Because if your debit card transaction gets declined for lack of available funds you're still there to make good the payment by whatever alternate means...
    • 18cc
    • By 18cc 10th May 18, 3:28 PM
    • 858 Posts
    • 580 Thanks
    18cc
    The solution is to implement the technology to release the £99 block as soon as payment it made. Doing it the next day or several days later is simply not goid enough.
    • eschaton
    • By eschaton 10th May 18, 3:58 PM
    • 1,841 Posts
    • 1,616 Thanks
    eschaton
    Nice - let them eat cake, eh?

    That was a crass and unnecessary comment you made - there are many people for whom routine (and arguably unnecessary) reservation of £99 from available funds is indeed a big issue, of course especially so if they have other cashflow problems to contend with, so it wouldn't surprise me if some found your sneering remark offensive or insensitive....
    Originally posted by eskbanker
    No one is making anyone use pay at pump. Plenty of alternatives.
    • EachPenny
    • By EachPenny 10th May 18, 4:23 PM
    • 8,063 Posts
    • 21,695 Thanks
    EachPenny
    Because if your debit card transaction gets declined for lack of available funds you're still there to make good the payment by whatever alternate means...
    Originally posted by soulsaver
    ...and failing that there will be a member of staff on hand to call the Police.
    "In the future, everyone will be rich for 15 minutes"
    • eskbanker
    • By eskbanker 10th May 18, 4:37 PM
    • 8,456 Posts
    • 9,584 Thanks
    eskbanker
    No one is making anyone use pay at pump. Plenty of alternatives.
    Originally posted by eschaton
    Mostly true (albeit unmanned pumps are becoming more commonplace, as per post #11 above), but you could obviously have chosen to respond along those lines before if that's the (different) point you'd wanted to make....
    • OceanSound
    • By OceanSound 10th May 18, 4:38 PM
    • 491 Posts
    • 90 Thanks
    OceanSound
    ...and failing that there will be a member of staff on hand to call the Police.
    Originally posted by EachPenny
    Only if you persistently 'forget your wallet at home'
    • EachPenny
    • By EachPenny 10th May 18, 4:41 PM
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    EachPenny
    It doesn't sound like any affected customer was told in advance their card would have a £99 hold, therefore ASDA were breaking the law, their decision to review / act in customer interest doesn't come into it.
    Originally posted by fernandes
    I suspect if customers had a closer look there was a sign explaining that the terms and conditions of using pay at pump required the customer to accept the £99 temporary hold and that by continuing the process of dispensing fuel they were agreeing to this hold being applied to their chosen payment card.

    The usual problem is people don't bother reading the small print.

    BTW, it generally isn't a good idea to definitively accuse someone or a company of breaking the law unless you are very sure of your facts and would be willing to defend your opinion in court. Just saying.
    "In the future, everyone will be rich for 15 minutes"
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