Are merchants charged for pre-authorized payment declined?
Just wondering how this works internally , it looks to me like this system could be better managed; especially taking into account that pre-authorized payment is mandatory to be a customer of certain services.
If you lose your card and your number changes, all your pre-authorized companies seem to shit a brick if you don't call them to update. My gym charged me a 10$ service fee. My health insurance provider sent me a letter late, 3 weeks after the payment was declined and threatened to close my account if I don't call them right away to arrange payment.
It seems like companies don't know to react rationally to this situation and it's basically a free-for-all as to what might occur.
This is in contrast to companies who operate in a pre-paid fashion, merely keeping your card on file and charge it like a normal payment, in which case they don't lose their damn mind if something is wrong.
It seems like pre-authorized payment is something that you agree to which exposes to you to certain managerial risk, in contrast to other types of credit-card processing.
If you lose your card and your number changes, all your pre-authorized companies seem to shit a brick if you don't call them to update. My gym charged me a 10$ service fee. My health insurance provider sent me a letter late, 3 weeks after the payment was declined and threatened to close my account if I don't call them right away to arrange payment.
It seems like companies don't know to react rationally to this situation and it's basically a free-for-all as to what might occur.
This is in contrast to companies who operate in a pre-paid fashion, merely keeping your card on file and charge it like a normal payment, in which case they don't lose their damn mind if something is wrong.
It seems like pre-authorized payment is something that you agree to which exposes to you to certain managerial risk, in contrast to other types of credit-card processing.
Heatware: 2-0-0
eBay: 69-0-0
eBay: 69-0-0