Banking Help

[Killiehibbie]

Is it possible for a bank to stop a pending transaction from completing?

[pollution]

Yes, possibly by mistake.

I took out money online but only a quarter of it arrived. Apparently the full amount raised suspicion so went onto a holding account.

For some reason no one contacted me to confirm the amount. Bank very apologetic and offered me compensation.

[EH6 Hibby]

Is it possible for a bank to stop a pending transaction from completing?

Depends what kind of payment. If it’s a direct debit then yes, if it’s a card payment then no. Think there may be a way for them to stop bank transfers but I’m not 100% sure as that’s not my area.

[Colr]

Is it possible for a bank to stop a pending transaction from completing?

They should but they won’t First Direct where **** all use when Pizza Hut ripped my off with a delivery order.

[easty]

Someone used my card to top up thier phone. I saw the pending transaction and called Bank of Scotland. They said they could refund it after it went through but not stop it from happening. Seems odd.

[HH81]

Someone used my card to top up thier phone. I saw the pending transaction and called Bank of Scotland. They said they could refund it after it went through but not stop it from happening. Seems odd.

Debit card is a guaranteed method of payment. Can be disputed once it debits though.

If you no longer have the card report it as fraud straight away.

[Killiehibbie]

Depends what kind of payment. If it’s a direct debit then yes, if it’s a card payment then no. Think there may be a way for them to stop bank transfers but I’m not 100% sure as that’s not my area.

It was a card payment that was cancelled but still went through. Sorted now with no help at all from the bank.

[MyJo]

Once a card payment is approved the company are legally entitled to claim that money from your account through VISA. The pending transaction is put in place by the bank to remove that amount from your available balance while they await the funds being fully claimed through VISA. This stops you spending the money again in the time it takes the full debit to happen.

Banks will generally keep a pending transaction there for 5 working days and if the merchant doesn't claim the payment by then they release the hold on that money in your account but that doesn't stop the merchant from claiming it and they can do that at any point in the future because its already been authorised (I've seen cases where a merchant has come back into someone's account six months later to collect a debit card payment they got approved but didn't fully debit it at the time)

The bank have no ability or authority to cancel an approved debit card payment and only the merchant themselves can do this. The bank could remove the pending transaction from your account but that would only release their hold on it so it could be used rather than stopping the merchant from claiming it. If they did that you would spend the money again and end up overdrawn when the merchant takes the money from you the next day anyway.

Even if its fraudulent an approved debit card payment can't be stopped as the merchant is entitled to receive that money for the service they provided and its the bank that absorbs the loss by refunding it back to a customer after it's been taken.

Killiehibbie, if the merchant told you the transaction was cancelled and it was still taken from your account then they lied to you and the payment wasn't cancelled. More likely they processed a refund of the original transaction which meant the money was debited and then refunded but refunds take a bit longer to come back onto the account than the debits take to come off. Nothing your bank could have done about that.

Direct Debits can be reclaimed under the Direct Debit Guarantee if there has been a mistake by the originator(ie they took the wrong amount, wrong collection date or took it after you cancelled it with them)

Bank transfers/Faster payments can't be cancelled, the money is in the other account in seconds and if you need to get it back you've got very little chance. Your bank can contact the other bank and ask for it back but they might just say no or the person who got your money has already withdrawn it and there is nothing you can do about it.

p.s. I deal with people who have been scammed into sending money to fraudsters by bank transfer when they are buying something online or making an investment or have had a phonecall pretending to be the bank or HMRC etc my advice is DONT DO IT......EVER. :greengrin

[Killiehibbie]

Once a card payment is approved the company are legally entitled to claim that money from your account through VISA. The pending transaction is put in place by the bank to remove that amount from your available balance while they await the funds being fully claimed through VISA. This stops you spending the money again in the time it takes the full debit to happen.

Banks will generally keep a pending transaction there for 5 working days and if the merchant doesn't claim the payment by then they release the hold on that money in your account but that doesn't stop the merchant from claiming it and they can do that at any point in the future because its already been authorised (I've seen cases where a merchant has come back into someone's account six months later to collect a debit card payment they got approved but didn't fully debit it at the time)

The bank have no ability or authority to cancel an approved debit card payment and only the merchant themselves can do this. The bank could remove the pending transaction from your account but that would only release their hold on it so it could be used rather than stopping the merchant from claiming it. If they did that you would spend the money again and end up overdrawn when the merchant takes the money from you the next day anyway.

Even if its fraudulent an approved debit card payment can't be stopped as the merchant is entitled to receive that money for the service they provided and its the bank that absorbs the loss by refunding it back to a customer after it's been taken.

Killiehibbie, if the merchant told you the transaction was cancelled and it was still taken from your account then they lied to you and the payment wasn't cancelled. More likely they processed a refund of the original transaction which meant the money was debited and then refunded but refunds take a bit longer to come back onto the account than the debits take to come off. Nothing your bank could have done about that.

Direct Debits can be reclaimed under the Direct Debit Guarantee if there has been a mistake by the originator(ie they took the wrong amount, wrong collection date or took it after you cancelled it with them)

Bank transfers/Faster payments can't be cancelled, the money is in the other account in seconds and if you need to get it back you've got very little chance. Your bank can contact the other bank and ask for it back but they might just say no or the person who got your money has already withdrawn it and there is nothing you can do about it.

p.s. I deal with people who have been scammed into sending money to fraudsters by bank transfer when they are buying something online or making an investment or have had a phonecall pretending to be the bank or HMRC etc my advice is DONT DO IT......EVER. :greengrin
Thanks for explaining it better than the bank did.

[EH6 Hibby]

It was a card payment that was cancelled but still went through. Sorted now with no help at all from the bank.

It’s one of those grey areas, where it’s the retailer that’s at fault, the bank can’t stop it as you now know, so the only option would be for the bank to refund you, but it’s the retailers responsibility to do that.