VISA June 1 outage: How to Recoup Your Losses if you suffered Multiple Chargebacks

Debit and credit card owners who suffered financial losses due to the Visa outage which impinged on payments all over Europe on Friday, June 1 are being advised to claim refunds from their banks.

Here is what affected fellows need to know.

Due to a hardware failure on June 1, Visa struggled to process transactions between 2 pm and 10 pm; which means most businesses were not able to accept card payments.

Some cardholders have even complained that the system recorded multiple transactions for a single payment and had a £100 ring-fence placed on their cards for pending transactions— which has influenced on how they use their cards.  Many others have suffered losses in several other ways as some have been forced to use cards with the worst exchange rates while overseas.

According to Visa, the outage was not caused by a hack, but due to a few hitches in its back-end processing system. The card provider also mentioned that it has already initiated a program with banks to try and speed up the process of canceling all the pending transactions.

The Breakdown

The problem was with Visa’s back-end processing system for payment. This crash interfered with the usual process where; a business accepts a client’s payment, and then Visa mediates between the business’s bank and client’s bank to allow transfer of payments.

In response, Visa’s confessed that its site can’t handle over 65,000 transaction messages per second and that partly explains the source of the problem.

What should I do if I have multiple pending transactions?

If all your Friday transactions that never went through now appear on your card as  ‘pending transaction,’ then that means the money is still in your account, only that you cannot see the funds until the issue is settled.

Well, these pending transactions should be lifted off your card in due course.  Some banks have already sorted out the problem. But cardholders can still contact their banks and query transactions.

Leading banks are tackling this matter in different ways;

  • Halifax, Bank of Scotland, and Lloyds reported that they had removed all pending transactions
  • Barclays and Barclaycard said that they’d take up to seven days to drop off any awaiting transaction for both local and international transaction.
  • Santander reported it could take three to seven days to do away with pending transactions, but staff can drop them off manually if you ask.
  • Nationwide promised to drop off any pending transaction in 7 days if customers contact ASAP.
  • RBS and NatWest also agreed to throw away these pending transactions if customers reach out.

How to Claim Compensation if you Suffered Extra Expenses

Cardholders have complained of incurring additional charges like payzone hidden charges due to the outage, e.g., paying more for with their backup card overseas or incurring some costs because of the “pending transaction” problem discussed above.

You can try claiming compensation for such expenses, gather all the evidence you can counting the details of the extra fee and other costs linked to it like additional phone charges. Remember that you’ll need to claim these charges from your bank and there’s no guarantee you’ll get paid back. However, all the banks listed above have promised to assist customers who feel they got ripped off.

Author Bio:Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards including payzone hidden charges. His understanding of the industry has helped thousands of business owners save money and time.