Skip to content

Debit Card - Returning Item from Overdraft

Answered by: 

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.

First published on BankersOnline.com 3/21/05

First published on 03/21/2005

Filed under: 
Filed under technology as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics