What to do if debit card payment declined but money was taken?

20 years ago to do a bank transaction the bank account holder had to visit the bank in person and fill in the challan and make the transaction. During those days the only medium of payment was cash and nothing else existed. Today, it is totally different, more and more people are avoiding cash payments and opt to pay using debit cards and credit cards. Studies indicate that majority of people tend to use cash as a mode of payment and then the next mode of payment is the debit card and then comes credit cards.

The percentage of people using debit cards during the past few years have been rising, more and more people tend to use debit cards today. This simply indicates that in the future there will be a tremendous decrease in cash as mode of payment. With such increase in the use of debit cards in the country, the banking sector has been active in updating and improving the security of every transaction made through debit cards. However, they have still not succeeded in making debit card transaction system error free. One of the most common issues related to a debit card is failed debit card transaction, but the amount gets debited from the account.

This unintentional error occurs due to the following reason

  1. Poor network condition and
  2. Server error

Most of the times after such incidences, the deducted amount will be automatically debited to the account within 24 hours. However, the RBI has issued a guideline in-case of a failed transaction but, the amount deducted from the account.

  1. If the issue happened during an ATM transaction, you should keep safe the receipt for filing the complaint, in case if you do not receive the receipt, visit another ATM and acquire a mini statement. Note down the ATM machine number, ATM machine owned bank, ATM machine area, and branch name.
  2. If the issue happened during an online transition using a debit card, note the transaction ID or number, and file a complaint with the nearest bank branch.

Here are the steps to follow if you have a failed transaction and money debited from the account.

Step 1: Visit the nearest bank branch or your account home branch

Step 2:File a complaint mentioning the details of the transaction and the proofs acquired.

  1. In case of ATM transaction issue, submit the copy of the receipt or mini statement and then mentioned the details like the ATM machine number, ATM bank name, ATM machine area and branch, Transaction date and time.
  2. In case of failed POS or online transaction submit the proofs like mini statement and transaction ID or number and then on the complaint letter mentioned the details like date and time, the site used, debit card number and account number.

Step 3: Submit the complaint to the branch manager or operations manager.

Once the complaint is submitted, according to the RBI guidelines it is mandatory that the bank resolve your issue within 7 working days from the date of receipt of the complaint. In case if the bank fails to resolve or credit the amount back to your account within 7 days of receipt of the complaint, the bank is bound to pay you INR 100 per day.

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