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dhpcza

Asda Borrowing "free Money"?

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My mum recently did an online shop with ASDA. Upon checking records of her bank account, she noticed a discrepancy where £3 was missing. She rang her bank and they said that ASDA had made 3 charges of £1 to her account. The bank said that they will get the money back (or something along those lines) and that my mum has to ring them again tomorrow to confirm some stuff.

Then my mum started looking back through her bank records (she writes everything down to double check against bank statements). She noticed that in her written records, there were times when small sums, of say £2 or £3 would go "missing" and then re-appear. It seems that these sums correlate with times an 'ASDA Shop" was done. She's going to try and confirm that.

If this is the case (and it seems 90% that it was ASDA taking money these previous times, 100% was them this time) then who can she complain to? And if ASDA are doing this, and they were doing it to several hundred-thousand (or maybe a million) customers per month, is that not a nice bit of "free" borrowing for them? Surely it's not ok to steal, even if you do put it back afterwards.

A one-off could be put down to some sort of glitch, but if it's shown that it has been done several times then that is pretty bad imo.

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It sounds like the auth/collect process that some online merchants use - an authorisation for a small amount is made when you place the order (this confirms your card details are valid); which is then cancelled, and the full amount charged when the goods are dispatched.

The small amount used as the authorisation isn't actually transferred from your bank to the merchant, but it has to be marked as unavailable - how this shows up I guess varies considerably between banks - with NatWest it doesn't appear as a transaction, but the "Available" balance is reduced by the authorisation amount.

I'd guess that's all that's happening here - ASDA are performing an auth at the time the order is placed; but not actually charging a card until the goods have been successfully picked and then delivered.

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It sounds like the auth/collect process that some online merchants use - an authorisation for a small amount is made when you place the order (this confirms your card details are valid); which is then cancelled, and the full amount charged when the goods are dispatched.

The small amount used as the authorisation isn't actually transferred from your bank to the merchant, but it has to be marked as unavailable - how this shows up I guess varies considerably between banks - with NatWest it doesn't appear as a transaction, but the "Available" balance is reduced by the authorisation amount.

I'd guess that's all that's happening here - ASDA are performing an auth at the time the order is placed; but not actually charging a card until the goods have been successfully picked and then delivered.

Ah, that makes some sense. I gather this is what the bank will tell my mum when she rings them back tomorrow. How long should/is that money typically unavailable for? My mum was annoyed as she hypothesised that if her account was running low and she had a direct debit due out, and the missing £3 affected that, she would incur charges. If all ASDA are doing is this authorisation thing, then they should make that clear to customers imo.

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Yes - it is pre-auth, from

http://groceries.asda.com/asda-estore/common/static/terms-and-conditionscontainer.jsp?prepage=/asda-estore/register/signincontainer.jsp%3FloginSuccessURL%3D/asda-estore/myaccount/accountmaincontainer.jsp

3.5 Pre-Authorisation Procedure: For Your protection and security, and in order to verify the debit or credit card details provided, We will contact Your card issuer on the day you checkout your order to request a pre-authorisation of £1.00. We will verify your card for £1.00 each time you amend your order. It is important to point out that this pre-authorisation is NOT a charge to Your card and will not be billed to You. Your card issuer may hold this amount for a short period, but this will never be taken from Your account. Then, on the evening before delivery We will request another pre-authorisation for the full order amount in addition to the £1.00 pre-authorisation amount. We do this to ensure that the card details are still valid and that You have sufficient funds to complete the transaction. We take NO payments from Your account before Your order is delivered, so You will only be charged for items once they are delivered as stated in 3.6 below. In the unlikely event that the £1.00 pre-authorisation is initially unsuccessful (and subsequently approved), and You amend Your order following the full value pre-authorisation, You may be pre-authorised twice. However, only one payment will be taken from Your payment card. In a small number of cases, some card issuers may hold the full pre-authorisation amount for a limited time (usually 3-10 days). This money will NOT be taken from Your account and is not held by ASDA.

3.6 We will debit the price, plus any delivery charge, from Your debit or credit card once We have delivered Your goods.

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My mum recently did an online shop with ASDA. Upon checking records of her bank account, she noticed a discrepancy where £3 was missing. She rang her bank and they said that ASDA had made 3 charges of £1 to her account. The bank said that they will get the money back (or something along those lines) and that my mum has to ring them again tomorrow to confirm some stuff.

Then my mum started looking back through her bank records (she writes everything down to double check against bank statements). She noticed that in her written records, there were times when small sums, of say £2 or £3 would go "missing" and then re-appear. It seems that these sums correlate with times an 'ASDA Shop" was done. She's going to try and confirm that.

If this is the case (and it seems 90% that it was ASDA taking money these previous times, 100% was them this time) then who can she complain to? And if ASDA are doing this, and they were doing it to several hundred-thousand (or maybe a million) customers per month, is that not a nice bit of "free" borrowing for them? Surely it's not ok to steal, even if you do put it back afterwards.

A one-off could be put down to some sort of glitch, but if it's shown that it has been done several times then that is pretty bad imo.

This site's useful - your Mum may be shocked to discover how uncompetitive ASDA really are:

http://www.mysupermarket.co.uk/

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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