Debit card authorisation.

[Plodd]

Picked up my Golf on saturday morning and all I can say is WOW.

But the reason i'm posting is that I paid the balance for the car on my debit card. A sum of £20,800. I fully expected that I would need to speak to someone to get the payment through but was amazed when it went straight through. My brother has suggested it could be because I used the card on tuesday to pay the £500 deposit but i'm not too sure.

Does anyone have any idea what criteria are used to determine which payments are checked and which not?

 

[A210AMG]

Hello,


Although it would have been a pain if refused I would like to think they would have checked in case the card was stolen?

Saying that I have only had a credit card company ring me once as my transaction were a bit random, purely as a check they were making sure it was me spending..

Glad your enjoying the car.

 

[pluggers]

There might not be any stringent checks on debit cards as there is on credit cards.After all a credit card is someone else's money and they will do checks on any unusual activity thats above the norm so they dont lose out if its fraudulent.

 

[Gucci]

So long as you have ID the seller will be happy. The funds need to be in the account for it to clear.

I've bought two cars at two seperate places with my Debit card. Does feel weird paying as if at supermarket. Both payments went straight through.

 

[fuzzer]

last time i paid 20k or so for something on my switch card i was indeed called and asked questions prior to the authorisation of the transaction.

 

[A210AMG]

Fuzzer,

If you look like your pic I would ring to check also...

Sorry (joke)


maybe it just depends on individual transactions / cards

 

[MBManInKen]

I fully expected that I would need to speak to someone to get the payment through but was amazed when it went straight through.

Same here when I bought my current car on my debit card.

 

[Gucci]

OR...perhaps they look at what kind of transaction.....£20k at MB dealer...yep fine, let it through...£20k at Vauxhall dealer...ALARM BELL..."what are you doing!!??"

 

[fuzzer]

id rather they checked to be honest never been annoyed at being held up by security when it comes to my money

 

[robert.saunders]

It may be something to do with the dealer's merchant being the same "bank" as the debit card holder's own bank, I think that makes a difference.

It's still an off-line transaction being a 'regular' debit card, but depends how you use your bank as well.

 

[Dieselman]

I've paid for two cars with debit card, no questions.

 

[mark.t]

deposit for a house ...... very strange feeling ...... thousands over the phone ..... to a stranger ...

 

[IanA2]

Tried to pay for my SLK with Amex....that will not do nicely Sir....had to use debit card & got lots questions....no bad thing I suppose.

 

[SimonsMerc]

The bank doesn't really care if someone steals it and puts £20k on it, because they are not responsible for it. Until you report it stolen, you are personally responsible for authorising transactions on the card (and the moment you report it they simply block the card). The debit card belongs to you, gives direct access to your money, and the liability is yours. With a credit card, the bank issuing the card is liable (they cannot legally give you credit for something and then not deliver), therefore their checks are significantly more stringent.

-simon

 

[gina2201]

My mum tried paying for a kitchen on debit card, had to be authorised....better to be safe than sorry!

 

[SG CL500]

I paid for my last car by credit card - despite pre-warning them about the transaction, and being assured a note was on file and it would go through, they asked to speak with me and ran through security questions.

Must say, I don't think it is any bad thing!

 

[GrahamC230K]

I used a debit card to buy the Audi. There were authorisation questions. The garage commented some transactions cause the buyer to be prompted others "don't touch the sides". No particular trend in terms of bank or value, they always thought it was to do with the normal activity of the account.

 

[guydewdney]

i paid for my C class 202 on a debit card, had to speak to someone to autorise it.

But - heres the interesting bit - despite still haveing at least a grand in the account, I got to the petrol station down the road and had to fill up my 'lift' car, it was declined. Aparantly the amount (25K) is 'marked' on the account for 24 hours to allow it to go through, yet the 25K had already been taken - so I was - according to the computer - 24K overdrawn....

 

[MBManInKen]

The bank doesn't really care if someone steals it and puts £20k on it, because they are not responsible for it. Until you report it stolen, you are personally responsible for authorising transactions on the card (and the moment you report it they simply block the card).

That is not true. Under the Banking Code in the UK, your liability is limited to £50 if the debit card is abused before you told the bank, unless you have been grossly negligent or you have acted fraudulently.

Credit Cards have additional protection under the Consumer Credit Act, but it is simply not true that if someone steals your debit card they can empty your account and you have to foot the bill before reporting the card stolen.

 

[saorbust]

I've also done this - brought a BMW (it was a while ago now - about 7 years) brand new using a debit card. Over £34k.

Didn't get questioned, went straight through. According to the bank, they knew I had the money, knew I brought cars a lot (was in my profile), and also knew the dealer would have had to have seen a driving license (they can sell it to me, but they would need to see a license to have a test drive, need to see insurance paperwork for me to be able to drive it away, etc etc). In other words, the amount of paperwork for buying a car gave them confidence I had been appropriately ID'ed to the satisfaction of the dealer, and I had the funds and the profile to warrant it being a normal purchase for me.

I just wonder if they would had refused had I tried to purchase a Skoda.