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Authorisation only refunds

Posted by sarahdixon sarahdixon
Message 1 of 4 102 Views

Hi, I recently made an online order with Woolworths. Something went wrong and my purchase didn’t process but my payment did. I called them immediately. They saw the issue and assured me a reversal request was done- I have evidence this was done by them showing date & time etc. 3-5 business days I was told to expect the funds to appear back. This is normal protocol. 

Bankwest have informed me that after taking 10 days the authorisation fell away because the merchant didn’t initiate the transaction further. 

So does this mean you didn’t receive the refund request or you stretch it out 10 days as your protocol regardless of whether you’ve heard or not? 

I would like to know in your PDS where it stipulates your protocol on ‘authorisation only’ transactions and how they work behind the scenes because I feel very mislead and the explanations don’t add up. 

Is it a MasterCard issue, Merchant or bank?

If a process to take your money is instant and I like that don’t get me wrong an error on a purchase between merchant and bank  should not take 10 days. 

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Re: Authorisation only refunds

Posted by DanaeC DanaeC
Message 2 of 4 98 Views

Hi @sarahdixon, thanks for reaching out.

 

Generally speaking, a merchant will request the amount of the transaction, and the bank will either approve or decline the transaction depending if there is sufficient funds in the credit card to cover the transaction. There are a number of reasons that the authorisation hold will remain in place for a varied amount of time, such as reconciliation differences between merchants, whether it is a domestic or international transaction, or times of the day in which payments are processed.

When the transaction is confirmed, the payment will be processed (or in this case, reversed) and the authorisation will be removed. The standard time frame between the bank, the merchant and the card provider for this is within 7 - 10 business days.

 

As an Authorisation Only is not a product feature, it wouldn't be listed in a Product Disclosure Statement (PDS). Although, you will find information on this in section 10.6 of the Account Access Conditions booklet:

 

"If you, or the merchant, do not proceed with a transaction after it has been authorised by us, your available balance may be reduced for at least seven business days. EFT transactions may not be processed to nominated accounts on the day they are made. Processing may take a number of days. We will process transactions to your nominated accounts as soon as practicable after receipt."

Thank you.

 

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Re: Authorisation only refunds

Posted by sarahdixon sarahdixon
Message 3 of 4 96 Views

Are you able to investigate my individual transaction? 

I would like to understand my banking in detail and in particular this transaction. 

My questions are

1) Did Woolworths refund request reach you & if so when?

2) Do you wait until the 10 Business days every time  if you have not heard from the merchant? 

3) If my account is reduced in funds awaiting the transaction to finalise and the merchant or merchants bank haven’t got the funds, where exactly do the funds sit? They simply cannot sit suspended in mid air? 

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Re: Authorisation only refunds

Posted by DanaeC DanaeC
Message 4 of 4 89 Views

We're not able to view or provide any personal information via the Forum sorry @sarahdixon, so if you'd like to have the transaction looked into further you can log in to Online Banking and select "Ask Us" via the Mobile App menu or "Message us Now" from a PC, and our Online Team would also be happy to answer any questions you may have at any time, 24/7. Alternatively if you can't access Online Banking, you can give us a buzz at any time on 13 17 19.
Thank you.

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