Billing before Shipping

[dbax791]

I've heard contrasting things on whether or not this is legal. I know in the Business-to-Business world, one company never bills another until the goods actually ship. But I recently had an online order cancelled, and while the company did refund my money, they billed me in advance, and held my money for 5 days without shipping anything.

So is this a common practice, or if its illegal, do I have any recourse?

[Memo]

No idea about the legality of it, but you're right, it is common practice to bill after the goods have been shipped. I've never had an online order billed before shipping.

[DoPeY5007]

are you sure they billed you?. Was it just a Credit Auth holding the money till they bill you?

that is most likely what it was, when you place a order they put a 5 day hold on that amount

[faither]

I've had it happen before but generally it's a moot point because the charge is against a credit card, in which case they haven't held your money or had use of any funds. I would never pay cash to any company or vendor without first receiving the expected goods or services. Too much exposure if things don't turn out as you would want. If my comments are off base regarding how you may have paid, I'd be interested in knowing the specific means of payment.

[dbax791]

Originally posted by DoPeY5007
are you sure they billed you?. Was it just a Credit Auth holding the money till they bill you?

that is most likely what it was, when you place a order they put a 5 day hold on that amount

Well no...I made the mistake of using a debit card...I usually use Discover, but they only took MC/Visa and my only Visa is a debit card.

So yeah...for 5 days, they had the cash from my account.

[DoPeY5007]

Originally posted by dbax791


Well no...I made the mistake of using a debit card...I usually use Discover, but they only took MC/Visa and my only Visa is a debit card.

So yeah...for 5 days, they had the cash from my account. that is how they all run, they put a "hold" on the money, it isn't a billing. I use my Debit card all the time, so I watxh it closely and the money is usally released in 5 days

[dbax791]

Originally posted by DoPeY5007
that is how they all run, they put a "hold" on the money, it isn't a billing. I use my Debit card all the time, so I watxh it closely and the money is usally released in 5 days

Well, yes and no. When they put a "hold" on the money, technically you don't have access to it, and your account balance is reduced. So in effect it is a "billing" for 5 days use of your money when they don't deliver the goods.

[WhiskeyPapa]

Same thing happened to me. On July 26th my wife ordered me a birthday gift for $565. They told her it was in-stock and would be shipped that day. They also charged our *debit card* that very same day. The gift never arrived and on my birthday (last Monday) my wife called them. They 'fessed up that it actually was not in stock, and wasn't expected for another week or so. She cancel the order.

Here it is on Friday, and they still have not credited my debit card.

Oh, and I did call the bank. It's not on any type of "hold" - it's gone out of my account.

I heard (but do not have hard facts) that it is a violation of the vendor's agreement with Visa and MasterCard to charge your card before shipping.

It's enough to make me want to start using credit cards again...

[DoPeY5007]

depending on what company and your bank, it may take a month for the funds to be avail. to you again, this is normal

[DoPeY5007]

Originally posted by dbax791


Well, yes and no. When they put a "hold" on the money, technically you don't have access to it, and your account balance is reduced. So in effect it is a "billing" for 5 days use of your money when they don't deliver the goods. BUT in the bank computer it IS NOT a true billing, just a AUTH.



if you think it is a billing I would call your bank and ask them if it is just a auth or if they actually did bill you

[faither]

You should really avoid using the debit card in such a manner. I've heard a load of horror stories people have had. Here's a link to a story outlining possbilities...
http://seattlepi.nwsource.com/money/74811_debit15.shtml

[WhiskeyPapa]

I just called my bank and got a very helpful woman who took down all the info about our dispute with 645af.com and said a "provisional credit" will be issued to my account, and that the dispute will be fully settled within 10 days.

I think this is the last time I'll use a debit card for a mail-order purchase over $100.

[DoPeY5007]

Originally posted by faither
You should really avoid using the debit card in such a manner. I've heard a load of horror stories people have had. Here's a link to a story outlining possbilities...
http://seattlepi.nwsource.com/money/74811_debit15.shtml nice info, but I use my card as a Visa for every purchase

[sbp]

This is why I don't use a debit card.