Made a purchase with debit card; bank reversed charge; items still coming

[drowning123]

I made a large purchase with my debit card. My bank blocked purchase and I had to call to get it unblocked right there in the store. My checking account was charged. Bank just updated account after the holiday. Purchase was reversed by bank, but items are still scheduled for delivery. Has this ever happened to anyone else?

[AngelinaCat]

I am not sure what you are asking.

It sounds like your bank figured something was wrong with the large charge, and locked your card in case of 'identity theft'. You called the bank and got the card unblocked, and the purchase proceeded. Then after the Labor Day holiday, your bank partially updated the transactions up to the point that the transaction was blocked, but nothing thereafter. And the blocked transaction shows today's date. Is this what happened?

If it is, something similar is happening with our CU. They have been experiencing some problems with their online banking system, and things that happened last Friday, only showed up today. Could this be the case?

[drowning123]

Thanks for your reply. The only thing is the transactions showed on Friday and now they're gone - 2 days now. I guess I'll just wait it out.

[justbroke]

It will probably be re-posted either through last night's overnight processing or tonight's overnight processing. Some bank debit cards work funny over the weekend. Many of the banks "reset" the unposted charges (ones for which there is a "hold" or pending amount, but have not been paid) over the weekend. This typically happens on Friday or Saturday night. Then, after the weekend (especially a holiday weekend), the charges will "post" and they will show.

I would wait a couple of days and just check the bank.

(I really don't know what you meant by "reverse" the charges. If the pre-approval only disappeared, that's not a reversal.)

[catleg]

When you make a "credit" purchase with a debit card, this is what happens.
First the merchant gets an authorization from his clearinghouse. At this time your bank will make sure there's funds in the account and put a hold on them.
Then the merchant submits his batched transactions at the end of the day to his clearinghouse for payment.
This is what actually deducts payment from your account.
It gets tricky for stuff like restaurants (normally authorize 20% over the check amount to allow for tip) or self service gas (normally authorize a blanket number like $50 or $100 but sometimes just $1) where the transaction amount is not known when the card is swiped.
Banks have different ways of handling these issues for bank accounts with debit cards attached to them. Often this is a clever way for you to get overdrawn on your account.

[tobee43]

i know our bank or some banks put limits on debit cards used as credit.

we found that out the hard way when we went to buy our new car a couple of weeks ago i was putting approx 13k cash down and went to use our debit card and it kicked back, they had to run it at less then 5k 3 times to not hit the limit. my banks told us that monday to next time call them and they will make sure we don't have a problem. so that is what might have happened, you may have a "limit" per purchase.

[AngelinaCat]

We use our debit card as a 'credit' card all the time. The only difference is, that when the money runs out, the card is declined.

[LadyInTheRed]

We use our debit card as a 'credit' card all the time. The only difference is, that when the money runs out, the card is declined.

It used to be that banks would automatically provide overdraft protection by covering the charges in excess of your balance as a "courtesy" and then charge an overdraft fee. I once used my card for a charge that exceeded my balance by less than a dollar and ended up paying a $25 fee. Gee, thanks! That was very courteous!

Federal law now prohibits banks from charging overdraft fees for use of an ATM or debit card (whether it is run as an ATM card or a credit card), unless you spefically opt in to overdraft protection. The law does not apply to checks or automatic bill payments.

[drowning123]

It will probably be re-posted either through last night's overnight processing or tonight's overnight processing. Some bank debit cards work funny over the weekend. Many of the banks "reset" the unposted charges (ones for which there is a "hold" or pending amount, but have not been paid) over the weekend. This typically happens on Friday or Saturday night. Then, after the weekend (especially a holiday weekend), the charges will "post" and they will show.

I would wait a couple of days and just check the bank.

(I really don't know what you meant by "reverse" the charges. If the pre-approval only disappeared, that's not a reversal.)

You're right. Maybe they were pre-approvals. My account is still not charged. I'll just wait it out.

[drowning123]

Thanks all! I know how my bank operates and this is a first. Usually once the transaction takes place, the money is gone, so this is strange. Anyway, there's a first time for everything.

[justbroke]

Your bank is strange. If it was posted using the VISA or MasterCard debit and credit network, then it would be a (pre) approval, followed by the merchant (vendor) "posting" or "batching" out the charges that night (or next day), and then the charges "posting" to your account. At my bank and my CU, I can see "pending" charges for debit cards (and credit cards) and see that they typically post 1-3 days after the (pre) approval is done. In some cases, especially hotel "pre-approvals" (holds), the pre-approval (hold) will actually drop off after 4-5 days. Actually, for both my banks, it behaves exactly the way that I wrote (and one of my banks is a CU).

I would say that yes, the cash is typically "held" so appears to be gone. However, until the transaction is posted, the money will just be set aside. If the transaction doesn't post within 4-5 days (for debit cards), the temporary hold (pre-approval) expires and the money magically re-appears. Don't be fooled by this. Banks will tell you that you need to maintain your check register as if you were writing a paper check. Just because it looks like the money is "back" does not mean that you haven't already allocated it by using your debit card (or issuing a check to a payee).