Frustration with online banking

November 1, 2007 10:59 AM

I'm getting fed up with the way recent (<48 hour) transactions are handled with my online banking (US based).

The problem is that nearly all of my card-based transactions always get broken up into three transactions like this:


10/23/2007 PA-SONIC DRIVE IN #4 (5.32)
10/24/2007 PA-SONIC DRIVE IN #4 (-5.32)
10/25/2007 DC-SONIC DRIVE IN #4 (5.32)


I'm guessing this is a pre-authorization, a refunded pre-authorization, and a final charge. That's all and well, but these transactions tend to make a mess out of the last 48 hours of my ledger. Also none of these transactions are downloadable into Quicken.

The main thing I'm wondering is whether this scheme is common to all online banking, or are there some banks that handle this more gracefully (or clear out the pre-auth mess quicker)?

posted by zek to work & money (15 comments total)

What's your bank? I have BofA and I don't see this type of online activity.
posted by junesix at 11:06 AM on November 1, 2007

As another datapoint, I've never seen this done with Wachovia.
posted by empyrean at 11:13 AM on November 1, 2007

As another, I've never seen this from PNC, nor from my credit card with Chase.
posted by Tomorrowful at 11:17 AM on November 1, 2007

Washington Mutual doesn't do this either.
posted by croutonsupafreak at 11:18 AM on November 1, 2007

I used to work at ING Direct, so I have a little knowledge about this. BUT, it's been a while.. so I'm a little rusty/things may have changed in the last year or so.

That being said...

Usually, pre-authorizations are not actual debits from your account - they're considered pending (on hold) charges/transactions. So while the transaction itself is "placed" (so to speak) and subsequently removed from your account, there is no actual transfer of funds being made. Generally this process can take a few days, and the pre-authorization transaction (that's on hold) time is largely affected by the manner in which the merchant handles the charge.

As far as I remember, pre-authorizations are completely at the discretion of the merchant. So it has nothing to do with the way your bank handles the transaction.
(And this is universal for all federally regulated US banks)

I believe that this process was designed around the idea of available credit - In other words, the distinction I'm making between the use of "charge" and "debit" has to do with what type of card transaction was made (PIN based or not). So it is, in fact, a rather inconvenient and antiquated process for use with debit cards. Probably needs to be updated, but banks don't really care enough. (?) (Personally, I don't think it represents any significant 'con')

Assuming that you're asking about a debit card/checking account, I would say it's rather helpful to know when a pre-authorization is made/withdrawn, and that the ability to see those is a positive aspect of your particular online banking account. At most banks, you would just see the final debit from your account. Also, the fact that the merchant does a pre-auth on a debit account has the potential to save you from any NSF fees (overdraft).

Hope that helped at least a little.
Anyone care to add/correct ?
posted by s01110011 at 11:27 AM on November 1, 2007

When I had U.S. Bank, it didn't do this. Neither does my current credit union.
posted by jdroth at 11:28 AM on November 1, 2007

Yeah, I get this with M&T bank. I just wait for a couple of days to balance my checkbook - what's the big deal? The initial swipe and refund don't make their way onto the statement.
posted by gaspode at 11:34 AM on November 1, 2007

I don't get this with HSBC (credit card or bank account), CapitalOne, or any of my store credit cards.
posted by Verdandi at 12:00 PM on November 1, 2007

AFACIT, either your bank does this (and you therefore see the transaction reflected online immediately) or they wait until the third event before you see anything (which sometimes might not happen until 48 hours later).
posted by winston at 12:01 PM on November 1, 2007

I have Commerce, and this happens sometimes with transactions. Bugs the fuck out of me. But I always presumed it had more to do with the place I bought something at, than the bank. Does this happen on ALL your transactions, or just at certain places?
posted by misanthropicsarah at 12:32 PM on November 1, 2007

Gah, online banking in general pisses me off. Why does everything take so damn long? What about an electronic transfer take THREE EFFING DAYS?? Anyway, I have bank of america and I don't see that behavior.
posted by lohmannn at 12:51 PM on November 1, 2007

I have Commerce, and this has never happened to me.
posted by dmd at 2:54 PM on November 1, 2007

Lohmann, it takes three days because all financial institutions rely on your fucking up in order to make their money. Three days to transfer money in, instantaneous deduction. Many people live paycheck-to-paycheck. Overdraft charges.

Loans work the same way; payments aren't credited until a week after they're received. They are "banking" on your having spent the money in your account already, then charging you late fees for insufficient payment of the balance.
posted by synaesthetichaze at 3:41 PM on November 1, 2007

be lucky you live close enough to a sonic drive-in to go there that often.
posted by micawber at 7:50 PM on November 1, 2007

be lucky you live close enough to a sonic drive-in to go there that often.

I'm pretty sure that was just all just one transaction, broken up and listed in three parts, which is what was making the OP angry.
posted by boreddusty at 7:53 AM on November 2, 2007