First class
Established Member
- Joined
- 9 Aug 2008
- Messages
- 2,731
This chap did the following:
His card was initially "offline" and would authorise payments. The closure of the account normally means that a cash machine swallows the card or an "online" terminal declines the card and may also ask the retailer to retain the card. If he did not use a cash point, or an online retailer after closing his account, the card chip cannot be rewritten to and effectively cancelled.
For the first few tickets, the payment on board worked normally, authorised through the chip and pin device. I'm not sure who carries the loss here, presumably the bank who then chase him for the debt.
BUT
Eventually, the "maximum" offline transaction value (which can be up to£1000 for some accounts, but normally around £250) or consecutive offline payments limit was reached, and the card chip would therefore decline thereafter. Essentially he maxed out the offline capability, so future tickets would then flag as "declined" unless the card was "swiped".
The interesting thing is, I wonder whether he claimed his train fares back from the Labour party, (so he gains twice). If he has gotten essentially a "free" train ticket say worth £100, and then claims £100 back, he is essentially £200 up. He therefore may well have committed fraud against the Labour Party, in addition to East Midlands Trains.
His card was initially "offline" and would authorise payments. The closure of the account normally means that a cash machine swallows the card or an "online" terminal declines the card and may also ask the retailer to retain the card. If he did not use a cash point, or an online retailer after closing his account, the card chip cannot be rewritten to and effectively cancelled.
For the first few tickets, the payment on board worked normally, authorised through the chip and pin device. I'm not sure who carries the loss here, presumably the bank who then chase him for the debt.
BUT
Eventually, the "maximum" offline transaction value (which can be up to£1000 for some accounts, but normally around £250) or consecutive offline payments limit was reached, and the card chip would therefore decline thereafter. Essentially he maxed out the offline capability, so future tickets would then flag as "declined" unless the card was "swiped".
The interesting thing is, I wonder whether he claimed his train fares back from the Labour party, (so he gains twice). If he has gotten essentially a "free" train ticket say worth £100, and then claims £100 back, he is essentially £200 up. He therefore may well have committed fraud against the Labour Party, in addition to East Midlands Trains.