What to do - where is the money (banking)

Lliv2013 on 23/01/2018 - 20:07

Thank you everyone in advanced for the help (my first post)

I have direct debit set up on my credit card (has been set up for almost a year with no issue)
On 6 Dec, my credit card was debit just say for $1,000 then on 7 Dec they credit (refund) $1,000. then on the same day 7 Dec they debit $1,000. which means I paid net $1,000.

The merchant however did not receive the $1,000. they can see the 1st charged and refund (netting to $0) but did not received the 2nd transaction. They have done their reconciliation and confirmed with their bank and no money received from the 2nd charged.

I raised a dispute with my credit card provider and their decline it saying it has been reimbursed on the 7th, which is the refund.

Story short - the money come out from my credit card but the merchant did not receive it. What should I do now. should i raise complaint for the disputes. I just felt so unlucky that my money is missing out of my control (the amount is almost $2k)

Thank you again.

Financial

Comments

  • PissLUR on 23/01/2018 - 20:11
    +1

    who is this merchant?

  • Yttrium on 23/01/2018 - 20:36
    +4

    ask the financial industry ombudsman

  • KaTst3R on 23/01/2018 - 20:37
    +1

    If there is a transaction record on your account, how does the bank dispute this? Normally, it will show which company (your merchant in this case) was responsible for the debit.

    And what is the reason for the refund?

    • liv2013 on 23/01/2018 - 20:51
      +1

      I do not know the reason for the refund. This is the 1st time in a year (since the set up) they charged - refund, then charged again. all the charged and refund name is the same XXXX Childcare. Merchant is childcare provider. Originally I called my bank to investigate the issue then he advised me to open disputes. Thanks

  • KaTst3R on 23/01/2018 - 20:53
    +1

    Well if have showed merchant your statement that they have indeed debited from your account, you have made payment. So the onus in on them to go find the money. If they keep insisting, then just open dispute. Let the bank handle this.

  • realfancyman on 23/01/2018 - 21:33
    +2

    If you have bank statement showing you have paid the money to the child care facility, you are in the clear and it is up to the child care to find out where the money is through their bank.

    • pjetson on 24/01/2018 - 20:46

      That's such a silly thing to say. If the child care facility doesn't have the money, they won't provide their services to liv2013. How does that make liv2013 "in the clear"?

      There are only two "players" in this game - liv2013 and the childcare facility. liv2013 needs to pay the childcare facility for their services. How that happens is up to liv2013 - there are likely many ways to pay. If liv2013's chosen method of paying does not result in the childcare facility actually being paid, then that's unfortunately liv2013's problem to solve.

      • realfancyman on 24/01/2018 - 20:55
        +1

        Liv2013 has paid for the childcare. They are therefore entitled to receive such services. It is up to the childcare provider to ensure they receive the money, and chase it up if they didn't, not from the paying customer, the one who is at fault (the bank).

        • pjetson on 24/01/2018 - 21:03

          Liv2013 has paid her bank. Liv2013's bank has not paid the childcare facility. Therefore, liv2013 has not paid the childcare facility.

          It's no different from liv2013 giving you the money to pay for the childcare, and asking you to pay them. If you don't do it, it's not up to the childcare facility to chase you.

        • realfancyman on 24/01/2018 - 21:55

          @pjetson: The childcare facility has authorised the bank to take payments on their behalf, and to pass on said payment.

          Liv2013 has utilised said agreement and paid the childcare facility via the bank.

          The problem here is between the bank and the childcare facility, as they have not fulfilled there part of the agreement (to pass on the payment), assuming all ends of the story are correct.

          The childcare facility has asked Liv2013 to pay the bill via Credit Card. Liv2013 has done so. Liv2013 has paid for childcare, childcare must be provided. /end

        • pjetson on 24/01/2018 - 22:13

          @realfancyman: I want to buy something you are selling. I tell my bank to give you the money. You don't receive the money. Are you going to give me what you're selling? After all, I've paid for it - it's your problem if you didn't get the money.

        • realfancyman on 24/01/2018 - 22:18
          +1

          @pjetson: If you can prove you have instructed the bank to send me the money beyond reasonable doubt, of course.

          I will then go to the bank with said proof and collect the payment. I know the bank isn't just going to keep the money, I know I will get it so there is no problem.

          If you are worried about the bank running away with your EFTPOS payments then banking is probably not for you.

  • theclearout on 23/01/2018 - 21:52

    Does it show as a 'completed' transaction or a 'Purchase Authorisation'?
    If it's just showing as a Purchase Authorisation the payment will not have been received by the merchant. It will show up in your transactions but would not make it to your monthly statement (and you won't have paid).
    If it has actually completed and appears on your statement then you have paid and like KaTst3R says above - show the merchant.

    • liv2013 on 23/01/2018 - 22:20

      Transaction date was 8 weeks ago so 'completed' transaction. I showed them my statement. And they presented me a snapshot of their bank statement and stared only the charged and refund. No 2nd charged listed. And she assured me their reconciliation is balance. Advised me that problem lies with my bank. While my bank closed my dispute saying it is with the merchant. Kind of being pushing around

      • pjetson on 24/01/2018 - 21:01

        Stop being pushed around. Next step is to ring your bank and ask for their complaints section.

        Tell them exactly what you've said here, and that you are not satisfied with the outcome. Tell them that unless they can resolve the problem right now, that you will have to lodge a dispute with the Financial Ombudsman. Ask for a reference number.

        If the problem still is not fixed, go to the FOS web site and actually lodge a dispute.

        Finally, go to the childcare facility and explain what you've done to try to resolve the problem. Take proof (perhaps a screencap of your FOS complaint). Ask the Childcare facility what they want you to do next - you never know, perhaps they will offer to wait for the result from the FOS. Or perhaps they will ask for a smaller amount of money until the problem can be sorted. You never know until you ask.

  • garetz on 24/01/2018 - 00:47

    It's not your problem, its theirs.

  • pjetson on 24/01/2018 - 20:30

    If your bank is refusing to fix the problem, you have no choice other than to go to the Financial Ombudsman https://www.fos.org.au

    Ignore the people here saying it's not your problem, they don't know what they are talking about. As far as the Childcare provider is concerned, you have not paid them (ie they don't have the money), and if you don't fix that problem, they'll stop looking after your kids. That makes it your problem.

    Most likely outcome, unfortunately, is that you will have to pay the Childcare provider again while you (or the Ombudsman) find out what the bank has done with your missing money, which will likely take some time.

    Perhaps you can come to a short term arrangement with the Childcare provider, but the bottom line is that if they don't have your money, they're not likely to want to provide you with their services.

  • pjetson on 26/01/2018 - 12:06

    Any news, liv2013?

    • liv2013 on 07/02/2018 - 10:05

      Sorry for not giving an update. I spoke to the merchant and they contacted their bank for investigation after I posted here. The merchant sent me an email with what they said the quote from the merchant bank that they did not receive the money and ask me to escalate with my bank. I brought everything to the branch and they made the call to the disputes team. They credited me the money in the next couple of days and informed me that it is pending as they need 45 days for investigation.
      But since that day my account has been dip in and out, like 'Adjustment' Cr xxxx (the disputes amount), couple days later 'adjustment' Dr xxxx, then couple days later 'representation adjustment' Cr xxxx. I think I need to wait for it to be finalised and I will close the account.

      In regards of the childcare, luckily, they just charged me for the outstanding balance in the next billing cycle. Technically they can issue us notice to leave as it can be said that 'we fail to pay the fees.'

      Thannk you again for the feedback.

      • pjetson on 07/02/2018 - 10:30

        Good luck with it all, Liv2013.

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