capturing funds from debit card

entering debit card number, debit card expiration date, cvv2 into an eCommerce website as a customer.

online one (or multiple) time purchase of  food delivery is considered by customer bank account as 'recurring payment'
and allowed to go through on an overdrawn bank account

I thought 'recurring' meant monthly

how can online food delivery company set this up where their payment will clear on an debit card that is out of funds.


Does 'recurring' just mean 'online'
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rgb192Asked:
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Alexandre SimõesManager / Technology SpecialistCommented:
I didn't understand your question...

"Recurring" means periodically, where the period can be whatever... hours, days, months... seconds? :)
"Recurring" can also just mean that it happens more that once without any defined periodicity.

Usually what happens with this type of payments is that you allow the institution to debit directly your card without your explicit permission.
Usually they're related to an invoice but nothing prevents them from withdrawing and amount (withing the limit if defined) whenever they want.

The limit is also important as usually when you grant them this right, there's no limit defined. I usually go to the Home Banking app and set it manually.

As for the funds, if the bank denies the amount they won't get the money.
What might happen is that you account allows negative balance until a certain amount which they can use.
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gheistCommented:
Probably your customer has valid reason (like pressing finance situation) to pay with debit card.
You can TRY to reserve money before shipping anything even on debit card.
Also bank is unlikely to overdraft debit card knowingly, ok maybe by 5$/€ if at all... in case of kiosk in desolate place has bad storm an no internet reception...
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dhsindyRetired considering supplemental income.Commented:
A debit card is more risky.  Use the credit option if your card has one, it is much safer.  You can pay when you want checking funds first, and avoid overdraft fees.
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nickg5Commented:
Recurring payments = when customer authorizes the bill to a card account monthly, quarterly, or annually = convenience for some people. Payment amounts can be fixed or change and payment agreements can exist indefinitely if desired.

Not sure where you are located.
Our debit cards are just that. Debit.
The funds come out of the checking account and bypass the Visa credit card company, in that Visa does not get their fee, since a "credit" transaction gives Visa the fee. Of course the fee is paid by our bank and no cost to us.

We have an account on Ebay. We pay all our bills online by going to their websites. On Ebay it tries to want us to set it up so every month they take our bill out of our Paypal account. We prefer one time payments and we use these every month for years. There is a box to check or specific link to use for a one time payment.

On our bills for lights, gas, phone, internet every single one of them offer us recurring or "one time."

Recurring seems to be the way the merchants want you to do it but there should be a link or box to check to make it NON recurring and one time.

Why are your funds coming out of an overdrawn account? The purpose of debit is such that it will be denied if the account can not fund the purchase. Unless you have $300 over draft protection like we do. But, that does not save us the over drawn fee as it just means that go ahead and pay the bill so it does not bounce but we still have to pay the over drawn fee.

We also have grocery stores that deliver food or have our order ready for us to pick up. These also give us a choice as to how we pay.

In no way are we obligated to use recurring payments on any of our bills or Ebay. There is a link or "one time" box to check to avoid recurring.

You should have the same choices or options.
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dhsindyRetired considering supplemental income.Commented:
That is just the way consumers are treated - get used to it.  The store is happy they got there money.  The bank is happy they get to charge you a fee.  Everyone is happy but you.
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rgb192Author Commented:
delivery.com (a food website)
has
3
input fields
card number
card cvv2
card date

There is no billing agreement or forms to sign.

Shows up as 'recurring' debit card account online banking even as I was a first time customer.

My question is
did delivery.com do something special so they can capture more cards
or are all online payment gateways have more privileges than a 'brick and mortar store'
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nickg5Commented:
Have they delivered and charged to your credit card an order that you did not place?
------------------------
Recurring sounds like you intend, as far as they know, to use the same credit card on all your purchases to merchants that they are affiliated with, to delivery the items to you.
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Alexandre SimõesManager / Technology SpecialistCommented:
There is no billing agreement or forms to sign.
Are you sure you didn't blindly checked an "I agree" checkbox? Either when you entered the payment or even when you created your account...
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rgb192Author Commented:
In no way are we obligated to use recurring payments on any of our bills or Ebay. There is a link or "one time" box to check to avoid recurring.
This is an example of a web form created by a programmer. Second step is sending data to the payment gateway.
What if there is less funds in the bank account then the "one time" charge?


Have they delivered and charged to your credit card an order that you did not place?
I ordered pizza once which caused my card to overdraft

I remember many years ago having a magazine subscription
I lost credit card
And received a new credit card in the mail with a new credit card number
and
the magazine subscription charges did not stop until I cancelled contacted magazine company

This is an example of recurring.


Are you sure you didn't blindly checked an "I agree" checkbox? Either when you entered the payment or even when you created your account...
On signup there were many input fields
firstName
lastName
email

maybe there was a checkbox


I have worked with authorize.net gateway as a programmer but I do not know if authorize.net has the ability to take funds from a customer card that has no funds.


A debit card is more risky.  Use the credit option if your card has one, it is much safer.  You can pay when you want checking funds first, and avoid overdraft fees.
So you think all online charges can be taken from a debit card but get rejected from a credit card



On Ebay it tries to want us to set it up so every month they take our bill out of our Paypal account. We prefer one time payments and we use these every month for years. There is a box to check or specific link to use for a one time payment.

On our bills for lights, gas, phone, internet every single one of them offer us recurring or "one time."

Recurring seems to be the way the merchants want you to do it but there should be a link or box to check to make it NON recurring and one time.
This seems like the merchant has the option on the gateway to choose 'one time' or 'recurring' for every charge.

example $40 a month. All charges are recurring even the first charge $40. So the bank does not put the description on the charge as recurring by checking last months charges for $40.

I think delivery.com is calling all charges recurring.
So my question is: does gateway allow merchant to mark all charges as 'recurring' to allow a higher capture rate and get more funds from customers.

My card not authorizing me to purchase $0.99 in person at a brick and mortar store.
Which may answer my original question:
Do charges using credit card (number)/ (expiration date) without the use of the physical card magnetic stripe get processed at banks discretion.
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nickg5Commented:
Where are you?
Magazines are different in one respect. If you have a 1 year subscription they are not going to auto charge you for a 2nd year. They'll send you a renewal notice and you say yes or no. If you want to cancel after 6 months you contact them. When our parents died we called all magazines and cancelled and got refunds for un-delivered issues.

The pizza over drawn on your account sounds like the cost was more than the amount of funds in the account.

I have never had a credit card in the USA to be charged without my permission and knowledge of what was being charged for and why and when and how much. Never.

This subject of recurring means you want them to take the funds out every month, etc. to pay your light bill, etc. If you have not made the required deposits they don't care and it is often called a bank draft whereby you pay a bill that occurs every month, etc.

I looked at delivery dot com and even joined and saw no way to even order anything or pay for anything.

Where you are located and which credit card company you use may help others give you a better answer.
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rgb192Author Commented:
I have never had a credit card in the USA to be charged without my permission and knowledge of what was being charged for and why and when and how much. Never.
not charged without my permission. I just did not know that funds were low on the account, but the charge went through and my bank charged me $35 overdraft fee.

This subject of recurring means you want them to take the funds out every month, etc. to pay your light bill, etc. If you have not made the required deposits they don't care and it is often called a bank draft whereby you pay a bill that occurs every month, etc.


Customer (me) only sees a couple input textboxes to simplify the eCommerce experience.






Magazines are different in one respect. If you have a 1 year subscription they are not going to auto charge you for a 2nd year. They'll send you a renewal notice and you say yes or no. If you want to cancel after 6 months you contact them. When our parents died we called all magazines and cancelled and got refunds for un-delivered issues.
Magazines were billed to my credit card monthly (not yearly). I do not know length of time in years but I do know that even when my credit card number changed after I lost my credit card, the billing continued even though magazine company did not know my new credit card number


Where you are located and which credit card company
country: united states
credit card company: visa
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gheistCommented:
Reserve -> ship -> charge?
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rgb192Author Commented:
Reserve -> ship -> charge?
I do not understand?
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sparabCommented:
By reading all above, I conclude this might regarding online transaction made to portal.

PayPal with the subject "Your bank declined your electronic funds transfer" which says "We will automatically re-attempt this transfer in 3 business days.".

"Fortunately", PayPal is smart enough to know that there's a pending transaction when I try to dissociate  bank account to prevent another salvo from being fired at it.

You can't add funds from a credit card to your PayPal balance. In fact, it's explicitly against the PayPal User Agreement:

Your best bet is really to be careful before hitting "Send Money". Make sure the right funding source is selected!
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rgb192Author Commented:
I am asking about
delivery.com
which has texboxes for entering credit/debit card
but not paypal

does this relate to paypal?
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rgb192Author Commented:
did I ask correctly?
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rgb192Author Commented:
probably. So any payment would be recurring. Thanks.

And thanks for all your answers
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