fiberguyMy views are my own.Premium
join:2005-05-20
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1 edit | reply to dvd536
Re: Didn't notice for a year? Not true.. at least with all banks.
My bank, if the money isn't there, they transaction is just declined.. If a check card is able to over draft an account, it means they are using an authorization number incorrectly. This happens quite a bit, and unless challenged, sure, the account holder burns. However, if the merchant tries to collect an amount from an account (debit) that doesn't have the funds, the transaction is supposed to decline. If the transaction is allowed to go through, the card member is NOT responsible for it. If the bank choses to honor the transaction, on a debit, it's their ass, not the card members.
(edit: a good example of a valid over draft situation is a rental card on debit. If at the time you obtain the car and there is $500 in your account, they hold $250 and get an auth for that rental, 10 days later you turn the car is, the money is no longer there (and most banks will drop the auth after about 3 to 5 days) and they do take the money ON THE AUTH # received, yes, your account WILL overdraw - with all due rights on the merchant. You will receive an over draft.
If you are at dinner, however, you only have $100 in the bank, the bill is $130, the transaction will decline. Auth and Capture is different from a pre-auth/post capture situation)
This is something that slips through the cracks all the time, goes un-challenged, and the card member will pay the fee.
However, if you have started a transaction when the account could handle the charge (the merchant gets an approval hold), later uses that approval number (which they can for up to a period of 30 days depending on the type of merchant) and the money isn't there when the transaction completes, YES, the merchant CAN take the money, CAN over draw your account, and YES, you will pay the overdraft fee.
In the case of Vonage, which doesn't report to credit companies by the way, are doing standard authorize and capture transactions, are NOT able to do what I said above. If they do, YOU, the member, are NOT responsible for over draft fees. As someone with a merchant account, and someone that's challenged this many times, what I say is correct.
If you allow your bank to do this, that's up to you.. but you don't have to. Visa/Master Card International set the guidelines and the banks MUST follow them. |
| I will like to use your bank. When I use a merchant that holds any amount of money through my check card, my bank freezes that amount until the merchant releases the money. |
