Apr 14 2010, 10:44 PM
QUOTE(squall0833 @ Apr 9 2010, 11:18 PM)
I'm not sure if this is the right place to ask this question, if i'm wrong, please inform me, thanks,
I got a question about using Credit card or Debit card to make online purchase via PayPal,
about the charges,
I'm using a EON Bank Master debit card, I linked my card to Paypal, and use Paypal to purchase online,
an example, I made a purchase USD 5.00 with 3.26 exchange rate to RM,
5.00 x 3.26 = 16.30
I got RM 16.30 deducted from my bank account,
02/04/10 EDEBIT PURCHASE-SA (ATM) -RM16.30
then 1-2 days later,
04/04/10 EDEBIT PURC CANCL-SA (ATM) +RM16.30
04/04/10 EDEBIT PURCHASE-SA (ATM) -RM16.56
I got my RM 16.30 back and deduct again RM 16.56, and this is the final charge of my USD 5 purchase,
This is the same to all the purchase I made via paypal, but I can't get a right % or a way to count it right,
different exchange rate purchase, different extra % charge, just don't get it,
I'd like to know how to count this? how does it actually charge me. Anyone know?
1 more example,
USD29.99 exchange rate when purchase = 3.3024
16/03/10 EDEBIT PURCHASE-SA (ATM) -RM99.04
18/03/10 EDEBIT PURC CANCL-SA (ATM) +RM99.04
18/03/10 EDEBIT PURCHASE-SA (ATM) -RM101.47
thanks
Actually that's just a standard procedure when you use credit card (in your case debit card) to make any purchase. Highlighted in red above is called pre-authorization.I got a question about using Credit card or Debit card to make online purchase via PayPal,
about the charges,
I'm using a EON Bank Master debit card, I linked my card to Paypal, and use Paypal to purchase online,
an example, I made a purchase USD 5.00 with 3.26 exchange rate to RM,
5.00 x 3.26 = 16.30
I got RM 16.30 deducted from my bank account,
02/04/10 EDEBIT PURCHASE-SA (ATM) -RM16.30
then 1-2 days later,
04/04/10 EDEBIT PURC CANCL-SA (ATM) +RM16.30
04/04/10 EDEBIT PURCHASE-SA (ATM) -RM16.56
I got my RM 16.30 back and deduct again RM 16.56, and this is the final charge of my USD 5 purchase,
This is the same to all the purchase I made via paypal, but I can't get a right % or a way to count it right,
different exchange rate purchase, different extra % charge, just don't get it,
I'd like to know how to count this? how does it actually charge me. Anyone know?
1 more example,
USD29.99 exchange rate when purchase = 3.3024
16/03/10 EDEBIT PURCHASE-SA (ATM) -RM99.04
18/03/10 EDEBIT PURC CANCL-SA (ATM) +RM99.04
18/03/10 EDEBIT PURCHASE-SA (ATM) -RM101.47
thanks
QUOTE(http://en.wikipedia.org/wiki/Authorization_hold)
A debit card works slightly differently. Similar to the previous example, if one has a balance of $100 in the bank and used a debit card to make a purchase at a retail store for $30, then his available balance will immediately decrease to $70 as a hold on the $30 is enacted. This is because the merchant has obtained an authorization from the individual's bank by swiping the card through its credit card terminal. However, the actual balance with the bank is still $100, because the merchant has not actually collected the funds in question. However, unless this authorization hold expires without being finalized the user cannot access that part of their account. The actual balance will not be reduced until the merchant submits their batch of transactions and the banking system transfers the funds.
Similar to the example above, when you charge something to your debit card, the amount will be deducted from your bank balance [16/03/10 EDEBIT PURCHASE-SA (ATM) -RM99.04]. When the merchant actually submitted the transaction to collect funds from the bank, your pre-auth will be refunded [18/03/10 EDEBIT PURC CANCL-SA (ATM) +RM99.04] and the ACTUAL amount will be deducted from your bank account that your debit card is linked to [18/03/10 EDEBIT PURCHASE-SA (ATM) -RM101.47].
The 2 different amounts is due to different currency exchange rate (which you should know fluctuate every day) when the time pre-auth was charged and when the actual amount was charged.
In credit card you don't see this because the pre-auth is deducted from the credit limit, hence not reflected in transaction statements. Only the actual charge will be posted to the credit card statement. Which is why, if you have a credit card, the transaction posting date is more often than not a few days later than the actual transaction date.
This post has been edited by Aurora Boreali: Apr 14 2010, 11:07 PM
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