Custom Service Hardware, Inc.

As stated in my previous reply, there is simply a misunderstanding of how banks handle a debit card used as a credit card for a purchaseThe policy of how each bank processes these transactions can typically be found on the banks web site which will mirror what my last replyAny questions on this policy should be directed to the customers bank. The customers statement that we canceled the charge and refunded her debit card, is not correct This hold is at the bank level and must be released thereA debit card pre-authorization must be canceled at the bank - OR - expire with time (which as stated before varies by bank) before the funds will be returned. By no means do we wish to imply anyone is stupidHowever this misunderstanding on banking policy is very common with debit cards. Again, without knowing where the customer banks at I cannot give an specific examples however for reference here are a couple useful links the will outline the typical bank policy Citizens Bank - http://www.citizensbank.com/debit-cards/faq.aspx Is there a difference between signing a receipt and using my PIN to authorize a debit card purchase?Your options may differ depending on the merchantSome merchants may require a signature (such as restaurants), while others may offer you the option of 'Credit' or 'Debit' when processing your purchaseUsually, if you select 'Credit', you will sign a receipt to authorize your purchaseIf you select 'Debit', you will use your PINWhen you use your PIN, the funds are immediately taken from your account.When you use your debit card without your PIN, the merchant may request an authorization from us. If we approve the request, we immediately remove the authorized amount from your Available Balance through a debit card authorization holdThis hold remains on your account until we receive a final settlement request (instructions from the merchant for us to deduct the exact amount of your final purchase from your account).Whether you select 'Credit' or 'Debit', the purchase amount will be deducted from your Citizens Bank checking account. When will the actual purchase amount replace the pending amount and be posted to my account?It may take several business days for the actual purchase amount to replace the pending transaction amount on your accountThe pending transaction reduces your available balanceThe pending transaction is generally replaced when the final purchase amount is deducted from your account within business daysIf the pending amount is not matched with an actual purchase amount within business days, the pending transaction will be removed from your accountRegardless of when the final transaction settles with your account, you should consider these funds spent.eHow - http://www.ehow.com/info_7766698_debit-card-preauthorization.html Credit vsDebit Transactions A key difference between credit card and debit card preauthorizations stems from how the cards workWhen you use a credit card, the card issuer pays the merchant, and then you pay the issuer back laterSo a credit card purchase essentially involves a short-term loan. With a debit card, though, the card issuer takes money directly out of your bank account. That affects what your bank does with a preauthorization involving a debit card.Clearing the Hold Note that it is the bank, not the merchant, that places the hold when a debit card transaction occursWhen the final transaction posts to your account, the bank should lift the hold it had placed on the fundsSometimes, if you check your account online, you might see an instance in which the final transaction has been posted but the preauthorization hold hasn't yet been lifted, in which case it would look as if you had been double chargedThe hold should drop off soon. In the end I am glad the process has cleared the funds back into the customer’s accountThe only faster way that this could have occurred is the customer to engage with her bank who in turn would have contact us to work together to clear to hold. Regards,
*** ***Director of SalesCustom Service Hardware Inc.*** *** **
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To whom it may concern,The complaint in question unfortunately is due to the customers misunderstanding of how the banking industry processes pre-authorizations on credit and debit cards. The customer did place an order via our web site whereas a pre-authorization was processed against her...

credit card during the check out process. No actual charge was placed against her credit card. The order was canceled per her request.However confusion can and often occur since credit cards and debit cards are handled differently by the issuing banks. This handling process from the card issuer is completely out of our hands.Credit card will often show a pre-authorization as a pending charge against a credit line. This pending charge will stay on the account until the authorization expires or is settled / processed as a charge.A debit card (which I believe is the case here) is handled very differently by the banking industry. With a debit card, since there is no "credit line" a pre-authorization will post as charge on her banking transactions against the funds available in her account. The money is set aside whereby the card holder nor the vendor (in this case, us) has access to those funds until the either the charge is settled or the pre-authorization expires.  The time for the pre-authorization to expire will vary from bank to bank. As stated above, this is a policy of the issuing bank whereas we have zero control over.It is possible to have a bank pre-authorization canceled however that is not a process we can start. The customer will need to contact her bank and let them know she wants to have a pending pre-authorization against her debit card canceled. At that point her bank will contact us for our approval (which we will) and then forward forms to us to fill out and submit back. The customer spoke with our accounting office and was advise of this however she insisted that we contact her bank. We can not do this for these reasons, 1) we do not have her banking information (ie, bank name, bank phone #, account holder name, account #, etc.) and 2) even with said information the bank will not discuss her account with us. This again is the banks policies of which we have no control over.So to summarize, we only obtained a pre-authorization for her order at the time of her placing the order. If funds have been removed from her bank account, her bank is holding the funds, not Custom Service Hardware. She can wait for the pre-authorization to expire (which is controlled by her bank) or contact her bank to requested a cancelation of a pre-authorized charge, which again, we can not do for her.Please send replies to [redacted]Regards,[redacted]
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Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.Even though they are trying to let you think that I am too stupid to know how my bank works, the did cancel the charge and refunded my debit card.  This is now a poor customer service complaint. To make their possible customer appear to be stupid to make up for their mistakes is not smart business practices.
Regards,
[redacted]

Review: On 4/14/2015 I was notified that the item I ordered was going to be on backorder until at least 5/2/2015. Later that day they charged my debit card for the full amount. I called to cancel the order since it was going to be too long before they could deliver and told them to refund my card. I was told they could not refund my money that I had to call my bank and get them to call them.Desired Settlement: I want my money refunded to my card. If I have to wait several weeks I believe I should receive interest since I should have not been charged before they knew when they could deliver.

Business

Response:

To whom it may concern,