Posted 24th Oct 2014
Although the above banks have their separate ways to avoid going overdrawn or fees being charged for returned items. This works as long as you pay cleared money in to your account before 3.30pm on a working day. I have recently seen another thing that these banks are doing. Namely this is debit card transactions coming through after 6-7 pm in the evening. Bonus if they come through on a weekend then they show up as being debited the next working day. However what does one do if these debits debit after 6pm ? Most people will check their account during the day and pay in if needed to cover the extra amount. What happens if this happens after 6pm ? The charge still goes on. I have seen this happen several times with other peoples accounts. Is this a way to boost profits by these banks ? If I am wrong please correct me. Before somebody says something about contactless. That is even worse.
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Also confused by the post.

I have never been charged for a card transaction, are you talking about if you buy something with no money in your account and then you later add money to the account? Why would you do that? Just spend what you have in the account....or am I missing something here Mr Khan.
Maybe stop having a balance so close to zero or get an agreed overdraft

Or just switch to first direct and get £125 for doing so
Why are you looking at other people's accounts? oO
You should stick to using cash.
Or get a credit card and try to do all your purchasing on the statement date to get maximum interest free time.
Regularly with lloyds if I pay contact less the funds aren't even flagged in the account in the available balance it was handy yesterday as I could spend my last £20 then withdraw the same £20 at a cash machine without unauthorised o/d charges as I was paid today
Here's what I remember from the banking/card system from my limited experience, which may explain some of these things.

When you make a payment there is a pre-authorisation at the time of sale, the merchant's terminal contacts your bank (in a roundabout way) and says "Has Bill got £5.99 to pay this?", assuming funds are available your bank then ring fences those funds and they come off your withdrawable balance. You cannot spend those funds again, in theory.

At some later point, usually that evening for bigger retailers, they then send a file to their merchant bank to settle all of these payments with each of the individual banks and shortly after you will be debited the funds.


A while back some smaller retailers used to do the pre-authorisation and then not send the nightly file straight away as I was informed this cost x amount each time and by not sending one every day they could save money. So you could have made a purchase on Monday and not be debited until Friday. At the time I heard this I was told it could cause problems as your bank only ring fence the funds for a certain amount of time and then release, so you could have since gone to the cash machine and withdrawn those funds and when it turns up you are overdrawn.


We used to use, and I believe it may still be the case, a thing called a 'floor limit' on the terminals/POS that would be set at say £20 and then any payment under that value will not go off for pre-authorisation but instead only be presented to the bank at the point of the nightly transfer. In this instance a person may not have the funds but the business, in setting the floor limit, have taken the liability on their shoulders and are willing to risk it. This could be used to speed up the number of customers going through the tills and you could lose 1 in 20 sales less than £20 but process 10 more sales for a few hundred. The liability could be worth the risk.

Obviously nobody knows if a floor limit is set on a terminal/till but I'm pretty sure Home (and) Bargains use them of a weekend because if you make a transaction for a relatively small amount it will go through pretty quickly rather than waiting for the terminal to do its thing.

I may be wrong on some of this!
I know exactly what you mean OP. I did some shopping at Aldi yesterday from my Lloyds account. It took 24 hours to come out of my available balance and is still not listed in my pending transactions, even though it has come out of my available balance now.

Aldi are one of the worst for this, they take days to take their money, I assume because it's cheaper for them to make all their banking transactions in bulk, so they save them up? Even though they haven't taken their money yet, a refund they owed me has gone in right away.

You cannot rely on timing when money will come out like this and you cannot rely on online banking or getting balances from cash points to know your balance. You have to keep track of it. You need to know what you balance is and what you have spent. Keep receipts and keep notes of it on paper if you have to. Trying to time it within a matter of hours is insane really.

If you don't know how much money you have, without getting balances and you are always near your account limit, you will permanently be stressed and will always be getting yourself into trouble. Try to build up an amount in the bottom of your account that you never touch and you will not have this problem.
What if you like fish?
Halifax always shows pending transactions and even though they are pending it deducts it from available balance so what you have in your account is what it shows you as available
So it does happen where transactions debit without being pre held by these banks. This means that no matter how careful you are you can still be stung?

So it does happen where transactions debit without being pre held by … So it does happen where transactions debit without being pre held by these banks. This means that no matter how careful you are you can still be stung?

you can only be stung if you are too stupid to monitor your transactions and fall to remember transactions after a day oO

No excuse not to these days with all this mobile technology.
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