Debit Card - Returning Item from Overdraft
by John Burnett, BOL Guru Guru BIOS
Question: We had a customer that used her debit card to rent a moving van. At the time she visited the rental company she had funds in her account. The rental company performed a preauthorization. The company did not submit the actual debit until 2 days later and the customer did not have the funds in her account. This caused an overdraft. Is there a way to return the item or do we have to pay the item and overdraw the account?
Answer: Rental companies and accommodations often cause problems with debit cards because of scenarios like this. However, once the merchant obtains an authorization, there is a window during which Visa or MasterCard enforces the authorization. As long as the transaction is submitted within the window, you have no ability to charge it back. While I don't know precisely how wide the window is, I know it's well beyond two days.
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