Mistyped Credit Card Info Still Got Charged?

Waffles on 02/04/2021 - 19:23

So the other day I got a call from my Health Insurance provider saying there was a chargeback on my most recent installment.

I hadn't requested one but did change CC details recently when I needed a new card re-issued as the bank had detected strange activity so I assumed the bank was being touchy.

I called them up and they had no record of the transaction.

When I went back to the insurance portal I saw the CC had an incorrect digit swap in the last 4 digits (the rest were X'd out).

It was the second charge to my CC and I've asked the insurance company to fix everything up but I don't understand how someone else could have been charged.

I understand that sometimes the cardholder name seems to matter in a transaction and other times it doesn't but don't the expiry and the CVV have to match and isn't the CVV some kind of checksum that won't work if the numbers are wrong?

More broadly, does it suggest the provider or the bank are being lax? I'd be upset if someone could charge stuff to my card by just guessing the number.

Financial

Comments

  • [Deactivated] on 02/04/2021 - 19:40
    +1

    America still allows vendors the carbon copy swipe method from the 80s sent weeks later in batches by post. The whole system depends heavily on honesty.

    • Waffles on 02/04/2021 - 21:23
      +1

      Terrifying…

    • iand on 04/04/2021 - 17:26

      In the Gardening industry they also do a lot of cheques and don't seem to do direct debit

  • akeno on 02/04/2021 - 21:12
    +1

    The banks sometimes only re-issue the cards by only changing the last few digits generally.

    The middle digits represent your card account. The prefix or BIN (first four digits) is your card issuer so they know whether its Amex, Visa, Diners or MasterCard. The last 4 digits can be changed around to represent your digital card number, supplementary cards etc. Any pre-existing direct debits still carry over even sometimes when card has expired.

    • Waffles on 02/04/2021 - 21:24

      Fair enough, but our bank never heard of this charge (or at least couldn't see it on our accounts). And even so shouldn't the CVV fail? Maybe im wrong on my understanding of it though.

  • AwesomeAndrew on 02/04/2021 - 23:32

    Sometimes CVV isn't checked. For example, try adding a card on Amazon and they don't ask for the CVV.

  • avoidfullprice on 04/04/2021 - 10:58

    The credit card number is checksum using luhn algorithm. Unsure about CCV being related to the credit card number mathematically, although I suspect not, otherwise anyone with your CC can deduce your CCV.

    • Waffles on 04/04/2021 - 18:45

      Fair enough. Still I thought that between number, expiry, cardholder name and cvv something if the number didn't match anything else it probably shouldnt charge.

      • avoidfullprice on 05/04/2021 - 11:13

        The number, expiry, name and CCV would be confirm during authentication.

        Maybe, just maybe, your health insurer didn't do a $1 charge your on credit card when you put the info in to confirm with a transaction.

        Also, either your insurer didn't do a simple checksum check on the number you entered, or the mistyped number passes the check. Unfortunate.

        Hope you not going to get extra fees for this incident.

  • vikvance on 06/04/2021 - 06:29
    +1

    So the other day I got a call from my Health Insurance provider saying there was a chargeback on my most recent installment.

    Are you sure, it really was a chargeback ?

    It's possible the person who called you was just confused & said 'chargeback' instead of 'declined transaction'.

    • Waffles on 06/04/2021 - 08:38

      I am not sure - fair point, though this was the second month so it seems strange that they allowed it to decline 2 months in a row (though again, it's possible).

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