OFT test case- BBC News Day 3

[conn75]

Unauthorised overdraft charges are central to the way current accounts work, the High Court has been told.

BBC NEWS | Business | Overdraft fees 'core' to banking

[Amethyst]

Re: OFT test case- BBC News Day 3

really lovely photos Mark btw

[ByTheWay]

Re: OFT test case- BBC News Day 3

And if the possibility of unarranged borrowing did not exist, then debit card payments could not be guaranteed by banks.
Retailers would be forced to phone banks to check every transaction before allowing them to be processed. Under current arrangements, banks will honour payments, even if they are not covered by an account holder's balance, and then charge the customer accordingly

How can Mr Rabinowitz use this argument when there are cards out there that link directly to a consumers account and can tell straight away if there's not enough money in that account, and therefore refuse to authorise the transaction? If they can do it for some then surely they can do it for all?

"On-line" debit cards: These cards usually are enhanced ATM (automated teller machine) cards which work the same as they would in an ATM transaction. It is an immediate electronic transfer of money from your bank account to the merchant's bank account.
"Off-line" debit cards: These cards usually look like a credit card and resemble a credit card transaction. The merchant's terminal reads your card, identifies it as a debit rather than a credit card, and creates a debit against your bank account. However, instead of debiting your account immediately, it stores the debit for processing later -- usually within 2-3 days.

[Nattie]

Re: OFT test case- BBC News Day 3

I will have to throw in that age old argument of "Floor Limits" which will automatically authorise a transaction without the relevant check with the bank. I have seen this work on switch machines where I believe a certain button can be pressed to authorise the transaction.

[ByTheWay]

Re: OFT test case- BBC News Day 3

I remember reading somewhere that some banks allow this delay on debit cards as a way of preventing embarrassment to the card holder from being 'declined' in public. Thus letting us go overdrawn if we need to? But we wouldn't be able to get cash out of the wall if we didn't have enough money in the account

[Tools]

Re: OFT test case- BBC News Day 3

I remember reading somewhere that some banks allow this delay on debit cards as a way of preventing embarrassment to the card holder from being 'declined' in public. Thus letting us go overdrawn if we need to? But we wouldn't be able to get cash out of the wall if we didn't have enough money in the account

How very caring of them to be so concerned with our `embarrassment` , nothing to do with the fact they make a nice tidy sum everytime they allow a payment to go through.

Thanks BTW , nice to see you here , do I know you and your avatar from somewhere else? And before anyone says , yes I know its the Welsh flag

[ByTheWay]

Re: OFT test case- BBC News Day 3

Hi Tools, yup I've been 'about' on other sites but not so recently. My avatar is the same but name changed, although it's along the same lines lol.
I refrained from getting on my high horse about the charges that went along with the transactions I was referring to as it was gettin late and I needed sleep, but I was going to say the same as you. In fact I would go as far as to say they probably hope we go overdrawn as a result, they are the ones that make from it, not us. These so called 'defences' from the banks are a joke! OK rant over...for now!

The site is looking great, think I'll stay awhile if thats ok