Airfare Refund - They want my bank account details?

[brissyflyer]

I had a flight booked with Vueling Airlines (A spanish based LCC) and the flight was cancelled so they have agreed to refund my 57EUR. Initially they said it would be refunded to my credit card within 30 days. Now over 60 days later I follow it up and am advised that due to IT problems they require my bank account details.

If it was a local airline I wouldn't mind but am somewhat nervous about sending my bank account details to a spanish airline.

Should I just dispute the charge with Citibank and let them sort it out instead?

Any advice welcome

Peter

 

[docjames]

Well, they already have your CC details so i say demand it back to the cc.

I too would be reluctant, maybe check with your bank if they're happy for you to give details?

 

[Nutcase]

Well, they already have your CC details so i say demand it back to the cc.

I too would be reluctant, maybe check with your bank if they're happy for you to give details?

There is no risk in providing your bank account details to a third party - they are unable to debit your account - only credit it.

If you made the original transaction on a credit card - then that it the channel that should be used for a refund, however there is no obligation for this to occur.

If you are in doubt, initiate a chargeback through your card issuer who can advise the way forward.

There is NO risk in either of these transactions.

 

[Mal]

There is NO risk in either of these transactions.

Not entirely correct I believe. With bank account details, I can sign you up (for example) to a charity for direct debiting each month. Easy to solve, but still annoying.

A classic example of this is here:

BBC NEWS | Entertainment | Clarkson stung after bank prank

Clarkson published details of his Barclays account in the Sun newspaper, including his account number and sort code. He even told people how to find out his address.

"All you'll be able to do with them is put money into my account. Not take it out. Honestly, I've never known such a palaver about nothing," he told readers.

But he was proved wrong, as the 47-year-old wrote in his Sunday Times column.

"I opened my bank statement this morning to find out that someone has set up a direct debit which automatically takes £500 from my account," he said.

 

[Nutcase]

Not entirely correct I believe. With bank account details, I can sign you up (for example) to a charity for direct debiting each month. Easy to solve, but still annoying.

A classic example of this is here:

BBC NEWS | Entertainment | Clarkson stung after bank prank

Unfortunately, this is an English Example and our banking system is differently governed and administered.

Also, Direct Debit DOES NOT work Cross Border or Cross Currency as is the fear of the person who requires the EUR57 refund.

On the domestic front, a Direct DEBIT can be disputed. If there is no form signed by the customer then the debit is reversed however this is not what we are talking about here.

As I said on the last post, There is no risk in providing information to a third part for the purposes of being paid. Keep in mind that this is a EUR57 transaction and they CANNOT debit you from a foreign country - they can only CREDIT you.

Giving out your bank account details to an airline for the purpose of a refund is about as risky as giving them your phone number.

 

[brissyflyer]

Thanks for the comments everyone.

I knew that domestically it is quite easy to debit an account if you have access to the right systems which was my main concern.

I will double check with the bank anyway to be sure, better safe than sorry. The credit card chargeback is my preferred option but as long as I get the money.

Peter

 

[simongr]

Unfortunately, this is an English Example and our banking system is differently governed and administered.

This might explain why we are years behind in chip/pin technology, we pay for ATM withdrawals, have limits on the number of transactions and barely 8 years ago we paid tax everytime we paid money into our bank accounts....

 

[Nutcase]

Thanks for the comments everyone.

I knew that domestically it is quite easy to debit an account if you have access to the right systems which was my main concern.

I will double check with the bank anyway to be sure, better safe than sorry. The credit card chargeback is my preferred option but as long as I get the money.

Peter

Unfortunately, there is a lot of misinformation around this topic and many opinions. By all means check with your bank if it helps you sleep at night.

In all my 20 years of banking, I have never had an issue with providing account numbers for the purposes of being paid.

For an overseas transaction, you don't need to supply a BSB so therefore, it is impossible to debit your account.

As far as banking security is concerned, I can assure you from personal experience that there is no way that you account number or details are compromised by allowing 3rd parties to pay into your account.

 

[Mal]

As far as banking security is concerned, I can assure you from personal experience that there is no way that you account number or details are compromised by allowing 3rd parties to pay into your account.

So filling out a Direct Debit form in Australia means that the signature is checked at your bank against the master signature on your account? The positively verified before it is set up?

Just today I heard a story from a friend about how their bank allowed a cheque written to a totally different company to be deposited into their account by a 3rd party.

It's only now that a 2nd cheque was being deposited that the bank had a query over the deposit and called them up. The first cheque cleared without any issues.

The Australian banking system is not foolproof by any mechanism. I agree that it's not really a concern when dealing with overseas 'reputable' companies, but still there are potential issues around the place.

 

[Nutcase]

This might explain why we are years behind in chip/pin technology, we pay for ATM withdrawals, have limits on the number of transactions and barely 8 years ago we paid tax everytime we paid money into our bank accounts....

No it actually doesn't explain it.

Not having Chip and PIN (yet) is a deliberate strategy in Australia. It is designed to reduce Fraud but is expensive to roll out. Fraud in this country (represented by a % of $1 spent on a card) is roughly half that of the UK and Europe, therefore it is an economic decision not to speed up the roll out.

Also, foreign card spend on domestic cards is less than 1% of total card spend hence the slow roll out of chips into Aussie credit cards.

If you're paying for ATM withdrawals at any ATM, then you have the wrong account. Both Citibank and NAB have accounts with free foreign ATM transactions. In the case of NAB, this extends to ANY ATM globally.

As far as tax (BAD and FID) were government taxes NOT bank fees. The taxes were collected by the banks on behalf of banks.

 

[Nutcase]

So filling out a Direct Debit form in Australia means that the signature is checked at your bank against the master signature on your account? The positively verified before it is set up?

Just today I heard a story from a friend about how their bank allowed a cheque written to a totally different company to be deposited into their account by a 3rd party.

It's only now that a 2nd cheque was being deposited that the bank had a query over the deposit and called them up. The first cheque cleared without any issues.

The Australian banking system is not foolproof by any mechanism. I agree that it's not really a concern when dealing with overseas 'reputable' companies, but still there are potential issues around the place.

No, the signature is not verified. Its only when there is a problem when its checked.

As far as cheques, each bank has its own process, however not every cheque is checked. There is a $ figure below which cheques just go through. Its surprisingly high.

 

[Mal]

No, the signature is not verified. Its only when there is a problem when its checked.

So, there is no problem if I signed up a friend to direct debit with a charity - it won't be checked until they complain (then reimbursed?)

No different to other types of fraud, but still possible as a nasty trick to play.

 

[Nutcase]

So, there is no problem if I signed up a friend to direct debit with a charity - it won't be checked until they complain (then reimbursed?)

No different to other types of fraud, but still possible as a nasty trick to play.

Indeed you are correct, however the process in the background is robust. Technically, you could but why? Youre not getting the money. You would only do it once and yes it is fraud and you would be dealt with accordingly.

Yes, it wont be checked until complained about - but cheques are not any different (in fact worse as the $ are higher)

Frankly anything is possible and there will always be fraud.

The original question was about an off shore transaction not a domestic one. You cannot direct debit from off shore unless you have access to the domestic banking system which this spanish airline will definitely not have.

In order to be able to perform a direct debit, you have to be a registered user and be sponsored by your bank. It is taken very seriously and many organisations are refused so its not as easy as taking money out of your account, hence the reason why the Overseas airline will not be able to perform a debit transaction.

 

[simongr]

No it actually doesn't explain it.

Not having Chip and PIN (yet) is a deliberate strategy in Australia. It is designed to reduce Fraud but is expensive to roll out. Fraud in this country (represented by a % of $1 spent on a card) is roughly half that of the UK and Europe, therefore it is an economic decision not to speed up the roll out.

Also, foreign card spend on domestic cards is less than 1% of total card spend hence the slow roll out of chips into Aussie credit cards.

If you're paying for ATM withdrawals at any ATM, then you have the wrong account. Both Citibank and NAB have accounts with free foreign ATM transactions. In the case of NAB, this extends to ANY ATM globally.

As far as tax (BAD and FID) were government taxes NOT bank fees. The taxes were collected by the banks on behalf of banks.

My point was more that I find the banking system here archaic compared to what I experienced in the UK 8 years ago. In relation to BAD and FID as I referred to them as taxes I was aware that these were government charges - I m not aware of any corporate with the power to levy taxes

 

[swissbignose]

The original question was about an off shore transaction not a domestic one. You cannot direct debit from off shore unless you have access to the domestic banking system which this spanish airline will definitely not have.

In order to be able to perform a direct debit, you have to be a registered user and be sponsored by your bank.

Excellent!

There's this Nigerian fellow that has been talking to me for years now, about transferring money into my account. I was a little apprehensive, but it sounds perfectly safe now!

 

[simongr]

Excellent!

There's this Nigerian fellow that has been talking to me for years now, about transferring money into my account. I was a little apprehensive, but it sounds perfectly safe now!

The Nigerian scams work on you paying some facilitation fees to get funds from you rather than debiting direct from your account. It is a common misconception.

 

[Nutcase]

The Nigerian scams work on you paying some facilitation fees to get funds from you rather than debiting direct from your account. It is a common misconception.

Indeed you are correct. The scam has nothing to do with taking funds from your account.

It staggers me that people think that banks would be set up in ways that would let money just walk out the door.

This is why the scams and phishing that goes on is so sophistocated. There is no other way of getting money from people unless they LET it happen.

 

[simongr]

This is why the scams and phishing that goes on is so sophistocated. There is no other way of getting money from people unless they LET it happen.

You can't cheat an honest man...

 

[medhead]

barely 8 years ago we paid tax everytime we paid money into our bank accounts....

But not in Queensland.

It was a very rude shock when I stupidly moved my accounts to a South Oz branch.

 

[medhead]

Excellent!

There's this Nigerian fellow that has been talking to me for years now, about transferring money into my account. I was a little apprehensive, but it sounds perfectly safe now!

I've been trying to help these Nigerians chaps out for years. Unfortunately, none of them are willing to make the $50 donation to the 5th Pentacostal Judist Church of Mecca that I request.