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Debit Card - Returning Item from Overdraft

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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?

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.

First published on 3/21/05

First published on 03/21/2005

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