Debit card clawbacks when using card machine payment

[Blenheim Car Sales 111]

I have had 2 now on a  debit card where card machine company have just gone straight in and snatched my money, On a debit card too, where there has been a customer moaning complaining about ( them buying a used car but expecting a new car) obviously its not the case we prep and MOT everything but its annoying that telling lies and altering the facts  can have this consequences like this. 

I might add this was  chip and pin, customer present

 

so beware rule of 75 on debit cards

[metcars 397]

Harsh! Not sure what you can do about that! If you try a clawback on a takeaway they’ll block your card. But that doesn’t work for us car dealers?

[Halfpenny 114]

3 hours ago, Blenheim Car Sales said:

so beware rule of 75 on debit cards

Section 75 of the Consumer Credit Act only covers credit cards - nothing to do with debit cards.

Debit cards fall under the banks' voluntary 'chargeback' scheme which has no legal backing......

[BHM 994]

If you have a Visa/MasterCard etc. debit card do they come under clause 75? Tbh I’ve never understood why many debit cards are also ‘with’ someone such as MasterCard.

[Halfpenny 114]

16 hours ago, BHM said:

If you have a Visa/MasterCard etc. debit card do they come under clause 75? Tbh I’ve never understood why many debit cards are also ‘with’ someone such as MasterCard.

I can 100% assure you that debit cards and pre-paid credit cards are not covered by Section 75 of the CCA.  Only credit cards.

Debit cards are provided by Mastercard, Visa and AmEx. These companies run the payment system. The cards are then issued to customers by the banks and 'linked' to the customer's bank account. Debit card chargeback has no backing in law. Its a voluntary scheme. If a customer has a problem with a car then they can complain to the card issuer (bank) who pass this through to the provider (e.g. MC). If MC agree with the customer then they will make a chargeback. But as a seller you can challenge this. Customer has 120 days after noticing a problem in which to make a chargeback claim. Unfortunately MC,  visa etc are so powerful that there is not much you can do about a chargeback in practise. In reality a debit card payment offers you, the seller, no more protection against clawback than a credit card. The only advantage is that a lot of customers know about S75 protection, but not many know about debit card chargeback.

[BHM 994]

Very interesting & you’ve obviously looked into this Halfpenny. As the old saying goes - every day’s a school day.

[Rory RSC 596]

I have had 2 credit card chargebacks attempted. Both have been unsuccesful.  As far as I see it only reason this would fail or go wrong is if you don't respond and challenge the chargeback.

 

 

[Blenheim Car Sales 111]

Well so far i have had two of these ( debit cards) and i have challenged them  so far successfully with the funds returned, Just annoying that you are presumed at fault from the start and have to take time out of your day to prove you done nothing wrong. 

Edited February 18, 2022 by Blenheim Car Sales

[Halfpenny 114]

21 hours ago, Rory RSC said:

I have had 2 credit card chargebacks attempted. Both have been unsuccesful.  As far as I see it only reason this would fail or go wrong is if you don't respond and challenge the chargeback.

 

 

Yes, you should always challenge a chargeback. A well-prepared response takes time but can be successful.

The thing is, a lot of sellers are reluctant to take credit cards because of S75, not realising that a debit card is not much better and in some ways worse.  I had one chargeback attempt TWO YEARS after I sold the car! Was successfully dismissed. But banks always take the customers side!