CarderPlanet
Professional
Many loan words have long been perceived with full understanding of their meaning. But some of the terms from the field of finance, which are heard quite often, require clarification. This includes "holding".
People who often buy any goods or services on the Internet must have noticed that after the payment was made, money remained in the account for several more days. But it was impossible to use them: the funds were available minus the amount of the payment.
Kind of like putting money aside to buy from your wallet into your trousers pocket, and forget about them for a while.
It's not bad for business. The function allows the seller to instantly return the money to the client, without paying a commission for the return, if the goods were not in stock or the transaction was canceled for any other reason.
It involves an acquiring bank serving the merchant, the issuing bank, the cardholder, and the payment system, which runs as a connecting thread between banks.
As soon as the payer's bank confirms the payment, the payment is booked on the client's account.
Only after receiving files confirming the operation, otherwise - clearing files, the money is debited from the account and the holding of funds on the card is terminated.
For example, if a purchase is paid in dollars from a card with a domestic currency, it is recalculated at the current exchange rate. But the point is that the exchange does not take place at the time of purchase, but at the time of the end of the hold.
In a few days, the exchange rate can change both for the better for the buyer and for the worse.
Sometimes you have to contact the bank to resolve the issue.
In any case, it takes time, which is not always convenient. Therefore, it is recommended to connect not a debit card, but a credit card to the holding. So, in case of an error, the bank's funds will be frozen, and not the client's.
The seller must go to the personal account of the payment system and connect the service there, or contact the manager with this request.
The maximum safe hold period for a store is six days. During this time, you need to have time to either confirm the withdrawal of money and complete the order, or cancel.
All orders on the seller's website, paid for by credit card, receive the "Awaiting confirmation" status. You can change it by canceling the order or confirming. If you do nothing, the money will automatically be returned to the payer.
If a customer has ordered ten items and only eight are available, you can change the total to the actual price. Then confirm the debiting by returning the difference in price back to the payer's card.
We can conclude that holding is a convenient function so as not to pay commissions on payment refunds and not to spoil the seller's reputation with a large number of returns. It also helps to reduce the number of transactions if not all goods are in stock or the price of the product has changed.
But the payer should be careful about the account balance after the purchase, and in the rare case of a double write-off, contact your bank.
What is holding funds
Holding is the booking of the payment amount on the client's bank card. Funds are reserved until the bank confirms the operation, within the time frame set by it.People who often buy any goods or services on the Internet must have noticed that after the payment was made, money remained in the account for several more days. But it was impossible to use them: the funds were available minus the amount of the payment.
Kind of like putting money aside to buy from your wallet into your trousers pocket, and forget about them for a while.
It's not bad for business. The function allows the seller to instantly return the money to the client, without paying a commission for the return, if the goods were not in stock or the transaction was canceled for any other reason.
How the payment process works
When the cardholder enters the details and clicks the "Pay" button, he launches a whole chain of actions.It involves an acquiring bank serving the merchant, the issuing bank, the cardholder, and the payment system, which runs as a connecting thread between banks.
As soon as the payer's bank confirms the payment, the payment is booked on the client's account.
Why do I need to temporarily freeze money on the card
At the end of the day, information about all payments made on the resource is transferred to the bank serving the outlet. There, information is prepared for debiting funds, which is transmitted to the bank that issued the card.Only after receiving files confirming the operation, otherwise - clearing files, the money is debited from the account and the holding of funds on the card is terminated.
Different currencies for account and operation
Holding money can be a surprise. Both pleasant and not very pleasant.For example, if a purchase is paid in dollars from a card with a domestic currency, it is recalculated at the current exchange rate. But the point is that the exchange does not take place at the time of purchase, but at the time of the end of the hold.
In a few days, the exchange rate can change both for the better for the buyer and for the worse.
Double write-off
Not often, but still there are situations when double the amount of money is debited from the card.- If the bank receives clearing files with a delay, that is, after removing the hold on the card and automatic payment, the funds will be debited again. Even if there is not enough money on the account, having received the details for debiting, the bank must carry out the transaction in accordance with the rules of payment systems. The balance will go into negative territory, although such an overrun is not allowed.
- Sometimes the client himself enters the card details into the payment form, then, without waiting for the system's reaction, refreshes the page and repeats the procedure. There is a double request for authorization, respectively - a double freezing of the payment amount.
- Often the reason lies in the error of the cashier or service personnel.
Sometimes you have to contact the bank to resolve the issue.
In any case, it takes time, which is not always convenient. Therefore, it is recommended to connect not a debit card, but a credit card to the holding. So, in case of an error, the bank's funds will be frozen, and not the client's.
Connecting and setting up holding
The buyer does not need to configure or connect anything, the payment process does not change for him.The seller must go to the personal account of the payment system and connect the service there, or contact the manager with this request.
The maximum safe hold period for a store is six days. During this time, you need to have time to either confirm the withdrawal of money and complete the order, or cancel.
All orders on the seller's website, paid for by credit card, receive the "Awaiting confirmation" status. You can change it by canceling the order or confirming. If you do nothing, the money will automatically be returned to the payer.
If a customer has ordered ten items and only eight are available, you can change the total to the actual price. Then confirm the debiting by returning the difference in price back to the payer's card.
We can conclude that holding is a convenient function so as not to pay commissions on payment refunds and not to spoil the seller's reputation with a large number of returns. It also helps to reduce the number of transactions if not all goods are in stock or the price of the product has changed.
But the payer should be careful about the account balance after the purchase, and in the rare case of a double write-off, contact your bank.
