How do banking operations work and what to do when things go wrong?

We are used to the fact that a bank card allows us to pay for purchases in seconds. But sometimes strange things happen: you put your card to the terminal, the transaction goes through, but the money is not debited from the card when you make a purchase. It would seem that this is a great reason to rejoice at the unexpected “savings”. However, everything is not so simple. In fact, the money is not written off instantly, but is blocked on your account, becomes temporarily unavailable, and goes through a complicated path before it gets to the seller. Let's find out how it works and what to do if there are glitches in the transfer process.

What is card authorization

This is the first stage of any banking transaction. Card authorization in the bank is a procedure for confirming a financial transaction. It occurs when you put the card to a terminal or press a button to pay during an online purchase.

The organization contacts the issuing bank that issued the card to authorize the charge. This process is automatic, although in the past there was a practice where the merchant would call the bank themselves to authorize the withdrawal. The time it takes to complete the transaction is usually a couple of seconds, but can take up to several minutes if the internet connection is weak. Many technical processes take place during this time.

The frozen funds are not available to you, but they are not yet transferred to the merchant. This is important because the banking system handles the confirmation of each transaction on several levels.

• Card data verification. The bank that issued the card checks the correctness of the entered data, the availability of funds and the validity of the card. If at least one of these factors is in doubt, the suspicious transaction may be rejected.
• Reservation of amount. After verification, the bank blocks the amount claimed, but suspends the transfer to the merchant. This is a temporary measure that protects both sides of the transaction. Such temporary blocking is called holding. The money is transferred to the seller's account not immediately, but within 1-3 business days. 
• The final stage is the debiting of funds. The money is withdrawn and transferred to the seller.

When you book a hotel or rent a car, your card may also be blocked for a certain amount of money. This is called preauthorization and can last from a few days to a month. The process is similar, but the funds are reserved for a longer period of time.

Why surgery takes time

The banking system is designed to minimize risks and protect the parties to a transaction. For example, frozen money allows the seller to be sure of the buyer's solvency and the bank to prevent fraud. However, the process of completing a transaction takes time because the funds pass through several financial organizations and checks. In addition, if the payment goes through international systems, such as Visa or MasterCard, additional data processing steps are added, which also increases the time it takes to complete the transaction.

Why payment went through, but the money was not debited

Sometimes there is a situation where money is temporarily blocked but does not actually go to the seller. One variant of the situation is called a free purchase. The payment was successfully completed, the store issued a receipt, an SMS-notification from the bank about the transaction came, but for some reason the money is not withdrawn from the card. The operator may try to repeat the operation again, but there may not be enough money on the account. In this case you can top up the card and make the payment again. After some time (usually not more than 30 days) the money for the initial unsuccessful transaction will be returned (unblocked). To speed up this process, it is recommended to contact the bank that issued the card.

When do such errors occur in the chain of actions? The reasons can be different.

• Technical errors. For example, a failure in the terminal or processing center.
• Incorrectly entered data when making an online purchase.
• Payment failed - you have not confirmed the payment.
• Exceeding transaction limits.
• Restrictions on payments abroad.
• Problems with the Internet. If the connection was unstable - the request could “hang”.
• Errors on the part of the seller. The store may have failed to send data to complete the transaction.

What to do in case of failures

If you notice that the money has not been debited, but also not returned - it is important to act promptly.

• Contact the issuing bank. Tell them about the situation and clarify the status of the transaction. Banks can speed up the process of unfreezing funds.
• Contact the seller. Sometimes problems are due to the fact that the store has not transmitted the data to the bank. Check whether the transaction has been completed.
• Submit an application to dispute. If the money hung because of a glitch - you can submit a request for a refund.
• Check the holding period. Usually it is up to 30 days. If this period has passed and the money has not been returned - the bank is obliged to deal with the situation.

It is important to remember that any failures will be corrected sooner or later, and the funds will either be credited to the recipient or returned to you. But during this period you should not reuse the card for similar transactions - this may result in an overdraft or repeated debit.

Who's to blame?

In any case, the customer cannot be found guilty. But what happens if he does not inform the bank about the free purchase? Even in this case, he cannot be called a fraudster.

When paying for goods in the store with a bank card, the buyer puts it to the payment terminal and enters the PIN-code. This action is considered an electronic signing of the purchase agreement and confirms agreement with the terms of purchase.

At the authorization stage, the buyer's will ends and the bank's financial system is connected, which is obliged to monitor the debiting of funds from customer accounts and is responsible for unlawful debits. There is no fraud on the part of the buyer, as there is no deception, malicious intent or breach of trust.