Overdraft charges notification and delayed transactions

Feedback & Ideas
21

I’m curious who would take the loss if for example the cardholder is not trustworthy and runs never settles the debt. Does :monzo: take the loss or can they charge it back to the merchant?

22

Wouldnt it be like any other bank, if your stuck in the overdraft and run never pay or communicate, they will hunt you down… and take your TV :scream:

3 Likes
23

They’ll try to hunt you down. If they can’t find you, they’ll sell or write off the debt.

If they sell, then your new creditor will try to hunt you down. If they don’t find you either, they’ll sell or write off the debt.

Rinse and repeat…

The merchant doesn’t come into play here.

24

Any sources for that? IMO the merchant should be taking the loss here, they’ve been idiots by not authorising the amount before giving out the goods, so why should the bank be on the hook for their incompetence?

As far as I know when merchants allow offline transactions they take the risk of the card not having enough funds for it, so how is this any different?

1 Like
25

OK, I think there are two different things here:

  1. A merchant can present a payment, and the bank declines the payment. In that case - if you have already walked off with the goods because it was an offline transaction - the merchant becomes the creditor and will try to chase you down. It will never result in an overdraft to you in the first instance, thus you never owned anything to your card issuer.

  2. The bank can accept/authorise the payment. At that stage they take the risk. They could have refused the authorisation, if they thought the risk was too big. But by taking the authorisation they agree to take the risk. Any resulting overdraft will be a debt to your bank, not to the merchant.

2 Likes
26

I used Starling in Belgium pay at pump station. And they charged my account for £170 firstly then amount was corrected to actual price (instantly). In UK full amount will be raked in few days only…

1 Like
27

@tom going round to peoples houses and taking their TVs is an image that makes me chuckle. I’m sure he’d write off the debt as long as you don’t make executive level decisions at NatWest - in that case you’d probably be lucky if he only took your TV… :stuck_out_tongue:

28

However Monzo is “Not like other banks” so maybe they would send the bailiffs for your kitchen utensils, pots, pans etc. :joy:

29

Hey @RichardR when I last asked this question I was advised the £20 buffer only comes into ply if you have an agreed overdraft. And this was confirmed by a Monzo member.

So have the terms changed recently or was the original information incorrect.

My understanding was that you should not be able to go into a negative without an overdraft. And if this should happen the card would be frozen until repaid but no fees would be applied.

1 Like
30

I see what you’re saying, but my understanding is that unless it was fraud, it’s the cardholder who stole from the bank, thus the cardholder they can go after.