Debit Card 'Recurring Payment Authority' Problems
Discussion
Hi Chaps, don't usually post in this section, but hopefully someone can advise:
I recently had a debit card charge from a company, for services which were unrequested and unrequired (it's a domain name registrar). They appear to have my card details on file, so can make 'recurring payment' charges. I have tried contacting the company,several times, but with no reply.
Deciding to contact my bank, they advise me that they can't 'reverse' the charge under any circumstances - and that my only recourse is to request a refund from the merchant. Looking at reviews on the web, it seems many others have had the same problem following a takeover of that company :-(
I asked my bank whether they have any 'list' of other comapnies who have my card details with authority to remove funds from my account - apparently at random and without any prior warning - to be told "no we don't".
Despite all the efforts by banks to improve online security, this seems like a gaping 'hole in the fence' for unscrupulous companies to exploit. Changing card details appears to be no defence either - or so my bank informs me...
Like many others, I make frequent use of online purchases, and have no idea how many companies have retained my debit card details (it's often the default choice).
I'd rather not close this account, but I'm not sure how this can be prevented in future. I accept that it's my responsibility to 'check the terms and conditions' when purchasing - but it's all to easy to lose track of what you've bought over the course of many years online.
Any advice? Apologies for the long ramble :-)
I recently had a debit card charge from a company, for services which were unrequested and unrequired (it's a domain name registrar). They appear to have my card details on file, so can make 'recurring payment' charges. I have tried contacting the company,several times, but with no reply.
Deciding to contact my bank, they advise me that they can't 'reverse' the charge under any circumstances - and that my only recourse is to request a refund from the merchant. Looking at reviews on the web, it seems many others have had the same problem following a takeover of that company :-(
I asked my bank whether they have any 'list' of other comapnies who have my card details with authority to remove funds from my account - apparently at random and without any prior warning - to be told "no we don't".
Despite all the efforts by banks to improve online security, this seems like a gaping 'hole in the fence' for unscrupulous companies to exploit. Changing card details appears to be no defence either - or so my bank informs me...
Like many others, I make frequent use of online purchases, and have no idea how many companies have retained my debit card details (it's often the default choice).
I'd rather not close this account, but I'm not sure how this can be prevented in future. I accept that it's my responsibility to 'check the terms and conditions' when purchasing - but it's all to easy to lose track of what you've bought over the course of many years online.
Any advice? Apologies for the long ramble :-)
Did they say why not? It sounds like you may need to approach the financial ombudsman with the evidence you have of your attempts at contacting the company to cancel and the correspondence with the bank showing they won't help.
This might be helpful, the bank should cancel for you and they need to explain why they are complying.
http://www.theukcardsassociation.org.uk/individual...
This might be helpful, the bank should cancel for you and they need to explain why they are complying.
http://www.theukcardsassociation.org.uk/individual...
Edited by Smiljan on Saturday 4th July 11:52
Similar advice from the FCA: https://www.fca.org.uk/news/news-stories/continuou...
FCA said:
How to cancel a continuous payment authority
In most cases, you should be able to cancel by contacting the company taking the payment and asking it to stop. However, you do have the right to cancel directly with your card issuer. Once you have done this, it must stop payments immediately – it cannot insist that you agree this with the company taking the payment first.
REMEMBER: IT IS YOUR RIGHT TO CANCEL CONTINUOUS PAYMENT AUTHORITIES DIRECTLY WITH YOUR CARD ISSUER
...
If payments continue, contact your card issuer to arrange a refund. If it fails to do so, you should make a complaint to the card issuer and, then, if you are not satisfied with its response, take the complaint to the Financial Ombudsman Service.
In most cases, you should be able to cancel by contacting the company taking the payment and asking it to stop. However, you do have the right to cancel directly with your card issuer. Once you have done this, it must stop payments immediately – it cannot insist that you agree this with the company taking the payment first.
REMEMBER: IT IS YOUR RIGHT TO CANCEL CONTINUOUS PAYMENT AUTHORITIES DIRECTLY WITH YOUR CARD ISSUER
...
If payments continue, contact your card issuer to arrange a refund. If it fails to do so, you should make a complaint to the card issuer and, then, if you are not satisfied with its response, take the complaint to the Financial Ombudsman Service.
The bank said I can indeed 'bar' future attempted charges from a particular company - but that they can't reverse a recent disputed transaction.
They are unable to do a 'global barring' of this type of payment, as they can't tell which companies have retained your card details.
I was told that even if the card number (and associated expiry date & CCV number) were changed, they would still have to honour a charge made against the old card. I was starting to lose my 'cool' at this point, so ended the conversation at that point!
They are unable to do a 'global barring' of this type of payment, as they can't tell which companies have retained your card details.
I was told that even if the card number (and associated expiry date & CCV number) were changed, they would still have to honour a charge made against the old card. I was starting to lose my 'cool' at this point, so ended the conversation at that point!
Based on the circumstances described so far, the bank seems to have set out the correct procedures to you (these will be the rules of the relevant card association i.e. Visa, Mastercard, AMEX and legislation i.e. the payment services regulations rather than the bank itself).
My advice would be to check your T+Cs with the domain name registrar. I assume this is an auto-renewal issue and I would imagine that the T+Cs will have some clauses on cancellations. If these haven't been followed by the firm you may then have grounds to request a chargeback with your bank.
My advice would be to check your T+Cs with the domain name registrar. I assume this is an auto-renewal issue and I would imagine that the T+Cs will have some clauses on cancellations. If these haven't been followed by the firm you may then have grounds to request a chargeback with your bank.
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