Anyone heard of credit card authorisation code

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Forums › Finance and wealth management › Anyone heard of credit card authorisation code

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#1182729 25-Nov-2014 12:23

Pb Tech I think did that to me when I first bought something, no drama got the code from my bank and rang them from memory. All subsequent purchases went straight through.

No drama really. If it makes it more difficult for people trying to defraud me I don't have a problem with it.

Easier than dealing with stolen card transactions surely. (ringing bank denying purchase etc )

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Lias

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#1183298 26-Nov-2014 14:24

Had that sort of thing from a few suppliers over the years, not that unusual.

End of the day it helps reduce fraud and keeps prices down. *shrug*

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ckc

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#1183392 26-Nov-2014 15:23

If it helped reduce fraud, everyone would do it. If they were really insistent on preventing fraud, they could use Verified by Visa or Mastercard SecureCode. But they don't want to invest in that technology if there's a way to put the burden on the consumer - pretty much like the 1.5% charge they load onto credit cards in the first place.

Last time I ordered a $90 keyboard from Computer Lounge, they wanted me to send them stuff like copies of my driving licence or payslips or something to verify my identity, for a product going to the billing address on the card. But they only needed to do it once. Not going to happen even once. Ordered from Playtech without having to jump through hoops or send identity documents to a retailer.

Lias

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#1183507 26-Nov-2014 17:25

ckc: If it helped reduce fraud, everyone would do it. If they were really insistent on preventing fraud, they could use Verified by Visa or Mastercard SecureCode. But they don't want to invest in that technology if there's a way to put the burden on the consumer - pretty much like the 1.5% charge they load onto credit cards in the first place.

Last time I ordered a $90 keyboard from Computer Lounge, they wanted me to send them stuff like copies of my driving licence or payslips or something to verify my identity, for a product going to the billing address on the card. But they only needed to do it once. Not going to happen even once. Ordered from Playtech without having to jump through hoops or send identity documents to a retailer.

I'd rather gnaw off my own genitals than ever buy from Playtech again, but YMMV.

ckc

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#1183517 26-Nov-2014 17:47

No, it was a pretty crappy experience, getting a hard drive protected by nothing but cardboard dumped in the mailbox and having the courier fake my signature on a signature required delivery.

It was DOA, naturally, but there was zero resistance on getting my money back.

GregM

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#1183534 26-Nov-2014 18:16

The merchant gets the authorisation code, there is no reason why they should ask you to get this from the Bank. I'd be questioning the merchant why they don't have it and are asking you to obtain it. I work for a Bank, we don't give it out as we shouldn't have to.

UncleArk

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#1183543 26-Nov-2014 18:25

I recently had elective surgery at a private hospital which was a substantial cost.

Since the private hospital was able to take my (Westpac) VISA I wanted to get the hotpoints for the transaction (enough to redeem for at least $250 worth of petrol vouchers).

I transferred the amount of money onto my VISA but because the transaction amount was greater than my daily transaction limit ($20,000) I was told to get an "authorisation code".

All I had to do was ring VISA and tell them what I was spending the money on and who, they supplied me with said code and I informed the hospital accounts people of this code when I carried out the transaction.

It was most definitely called an "authorisation code" and as far as I am concerned the bank supplied me with this...

Kyanar

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#1184481 27-Nov-2014 22:11

GregM: The merchant gets the authorisation code, there is no reason why they should ask you to get this from the Bank. I'd be questioning the merchant why they don't have it and are asking you to obtain it. I work for a Bank, we don't give it out as we shouldn't have to.

You don't get it. The merchant does have it, and they want the customer to prove they are the cardholder by getting the bank to give it to them. They're essentially outsourcing their fraud protection to the banks for free!

GregM

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#1184598 28-Nov-2014 07:48

Kyanar:
GregM: The merchant gets the authorisation code, there is no reason why they should ask you to get this from the Bank. I'd be questioning the merchant why they don't have it and are asking you to obtain it. I work for a Bank, we don't give it out as we shouldn't have to.

You don't get it. The merchant does have it, and they want the customer to prove they are the cardholder by getting the bank to give it to them. They're essentially outsourcing their fraud protection to the banks for free!

I do get it, and I know what they are trying to do, but they shouldn't be and there should be no need to do so.

Jase2985

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#1185014 28-Nov-2014 16:30

GregM: I do get it, and I know what they are trying to do, but they shouldn't be and there should be no need to do so.

How do you prove the card isnt stolen?

GregM

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#1185018 28-Nov-2014 16:35

Jase2985:
GregM: I do get it, and I know what they are trying to do, but they shouldn't be and there should be no need to do so.

How do you prove the card isnt stolen?

Its not up to the merchant, if the Bank approves it (doesn't block it due to it being stolen), then its on the bank, not the merchant.

I've done some more digging on this, its pretty rare for merchants to ask for this. Typically its because the bank has approved it, but for some reason they don't get the code. I don't really see how this happens thou. They should go through the proper channels, not ask you as the cardholder to obtain it. As for ID, there is nothing on them to do this, so again, any fraud would be on the Bank. Since this isn't very common, I don't think banks actively do anything to stop this, but they should be reporting through the card schemes so the merchant can be advised to stop the process.

Jase2985

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#1185021 28-Nov-2014 16:40

and is there anything wrong with a buisness wanting to protect its self from sending out goods only to find out the card is stolen? how do they get the goods back?

GregM

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#1185022 28-Nov-2014 16:42

Jase2985: and is there anything wrong with a buisness wanting to protect its self from sending out goods only to find out the card is stolen? how do they get the goods back?

As I said, its not on them, they get paid anyway. The Bank on the other hand would be liable. Good on them for doing it I guess, but in the end its not their responsibility and mucks the customer around.

richms

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#1185072 28-Nov-2014 17:55

GregM:
As I said, its not on them, they get paid anyway. The Bank on the other hand would be liable. Good on them for doing it I guess, but in the end its not their responsibility and mucks the customer around.

No they dont get the money anyway. Thats why chargebacks hurt merchants and not banks which is why banks have no incentive to do anything about the crap security of cards.

Richard rich.ms

ckc

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#1185118 28-Nov-2014 20:14

No, they get charged an amount, but they wouldn't lose the full amount. The bank would charge an administration charge. They may not, or it could be fairly low, but they certainly aren't forced to forfeit the goods and the money when the bank authorised the payment.

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