Shops/ Petrol stations applying temporary transactions to your account.

The Scratcher

Hi,

Just wondering has anyone come across this. I've noticed a number of times on my internet banking (aib) in the pending transactions section after paying for petrol at a certain filling station there will be a transaction of 5 euro, that reduces my available funds but disappears after a number of days, I generally pay for petrol/ groceries etc with my debit card.

The first time it happened I thought it might have been a mistake I made and went looking for all my receipts to make sure I hadn't bought something myself and forgot about it, but when I checked back the transaction was gone and my funds had been credited back the 5 euro, no record of any transaction.

I noticed today that it has happened again after getting petrol on Friday. Because this is the end of the month it has brought my available funds to a point that is very low and I have a direct debit due to come out tomorrow for my phone bill. I keep quite a tight budget in my current account and transfer most of what I don't spend in a month from my wage into a savings account.

So I rang AIB to find out what the story is and they informed me that this is a common practice among some shops/ petrol stations to try a small transaction first on a card to make sure the account is active before debiting the correct amount. My question is, is this legal? I haven't authorised them to take the money from my account, even if they do pay it back and no matter how small the amount is I am only committing to pay what I am obliged to pay for the goods/ service I have received.

I doubt very much if I went into a shop and took a few magazines from the rack and just walked out saying I'd pay for them next week they'd be too impressed.

BuffyBot

Perfectly normal procedure for card transactions.

ScouseMouse

Its nothing to do with the shops and petrol stations.

Its the banks that are doing it.

Greenmachine

I have seen some similar but on the flip side. Gone to the bank maybe five times and found my balance higher than it should be to the tune of about €300-€400 euro. Money I wasn't expecting to be there. The staff didn't believe me when I raised it. So after seeing it a few times, I decided to print the balance from the atm. Sure enough it return to where it should have been. A few days later my wages would go and the balance would increase to where it had previously been. The clerk ended up checking with the back office. In this case it was an issue with the payroll for the company I was working for. I don't know the exact details, but I think what every system that is in place for the payroll was automatic and funds were withdrawn from their account and then manually cancelled.

The Scratcher

superscouse wrote: »

Its nothing to do with the shops and petrol stations.

Its the banks that are doing it.

Why would the person I was talking to in AIB tell me otherwise then? She said the shops do it to "test the card"

I don't see it as a perfectly normal procedure either tbf, it's an unauthorised transaction nothing more, even if the money is credited again at a later date.

Greenmachine

The Scratcher wrote: »

Why would the person I was talking to in AIB tell me otherwise then? She said the shops do it to "test the card"

I don't see it as a perfectly normal procedure either tbf, it's an unauthorised transaction nothing more, even if the money is credited again at a later date.

I know it is very common to this in hotels, where a guest may use extra services even if room is booked in advance. Believe they call it "pre-authorisation"

Delta2113

Only solution go back to paying with Cash.

galwayjohn89

Delta2113 wrote: »

Only solution go back to paying with Cash.

Or leave a little bit extra in the current account or else use credit card for everything

Pablo Sanchez

The Scratcher wrote: »

Why would the person I was talking to in AIB tell me otherwise then? She said the shops do it to "test the card"

I don't see it as a perfectly normal procedure either tbf, it's an unauthorised transaction nothing more, even if the money is credited again at a later date.

The money never leaves your account, the petrol station gets no benefit from it. In future pay in the shop and you will avoid the pre authorisation.

Its a necessary security feature

Feisty

Yes I've seen this happen, and queried it with my bank, they said the charge was put there by the fraud division while they investigated was it a genuine transaction. It only happens in one petrol station, but it happens every time I pay by card there.

The Scratcher

Pablo Sanchez wrote: »

The money never leaves your account, the petrol station gets no benefit from it. In future pay in the shop and you will avoid the pre authorisation.

Its a necessary security feature

For all intents and purposes the money has left my account though, as in I don't have access to it. I've read up a bit on pre-authorisation now through wikipedia, this practice is called a double hold. I did actually pay in the shop though because I read another thread where it seems to be an issue with self service pumps.

It's a practice I was never aware of and is just something I need to be mindful of in future at the end of the month, but realistically I don't see the need in it. The money still hasn't been credited to my account though, I bought the petrol Friday.

BuffyBot

For all intents and purposes the money has left my account though, as in I don't have access to it

Actually Pablo is correct. So to clarify for anyone who may stumble on this in the future: the money hasn't, and doesn't leave your account. It's the electronic equivalent it being locked in a box for a few days inside your house. It's still in your house - you just can't get into the box.

Legislator

superscouse wrote: »

Its nothing to do with the shops and petrol stations.

Its the banks that are doing it.

How could it be the Banks doing it, silly comment - the retailer raises the transaction

D3PO

BuffyBot wrote: »

Actually Pablo is correct. So to clarify for anyone who may stumble on this in the future: the money hasn't, and doesn't leave your account. It's the electronic equivalent it being locked in a box for a few days inside your house. It's still in your house - you just can't get into the box.

Actually The Scracher is correct. They cannot access it so it may aswell be on the moon as in their account. So to say for all intents and purposes that its not in their account is correct.

They know its still there but it may aswell not be.

The Scratcher

Thank you D3PO.

locking it in a box my ass, the fact that people accept this type of carry on, be it instigated by the bank or by the retailer is what worries me. It's an unauthorised transaction plain and simple, notwithstanding the return of the money and I don't care if it's €5 or €500.

Don't get me wrong I have no issue with using my card to pay for things, if the time listing on the statements was more accurate it'd be perfect as it is easier to budget than using cash, obviously I'll still use cash for tipping etc but this type of carry on just isn't right IMO. Also the money still hasn't been credited to my account, luckily my phone bill was low this month so I didn't get a failed DD.

BuffyBot

Let's cut the misinformation: you need to separate your dislike of how something operates from the actual facts. People coming here looking for clarity aren't going to be assisted by your having a hump about something you find distasteful.

Dislike does not equal wrong, unauthorised, fraudulent, theft or any other random emotional construct you try to apply to it.

/end thread.