Double charge while paying online

Question

Lately I've started encountering this double charge procedure on almost every online payment I do.

For example, I've ordered some food from UberEats and the bill was 20,00€ (€10,00 x 2). I immediately saw a -20,00€ deduction on my bank account. Two days after, I saw a new transaction from UberEats which was -10,00€. The next day another transaction which was again -10,00€. So now in total I have -40,00€ from my bank account for the order of 20,00€. Then again a day later, I received a +20,00€, so in the end everything was good.

I am really curious about why is this happening lately? Why do they double charge you first and then few days later you get your money back. I've also ordered something from Nike (200,00€) and now they double charged me that as well (400,00€).

I really don't like this, that more money is taken than the actual bill. And I'm not being asked for any approval. (Even though the money is later refunded).

Answer 1

Similar things have happened to me when using a debit card (in my case Maestro) where people typically use credit cards. It's also common if you come from a country where debit card are dominant (e.g. Netherlands or Germany) and you travel to a place were nearly all bank accounts come with a credit card (e.g. France).

The reason this is happening is that the typical transaction when ordering online through a third-party platform, renting a car, booking a hotel, fueling up at a self-service petrol station involves three steps:

1. The provider or platform runs a credit card pre-authorization or autorization hold for the expected amount of the goods or services (and sometimes quite a bit more, e.g. when renting a car). At that point, the exact amount is not necessarily known but the provider has some guarantee that you can pay.
2. The transaction is initiated (e.g. the restaurant gets your order, a delivery person is dispatched, or you get the rental car).
3. When the transaction is completed (e.g. you confirm reception of the goods or you return the car), the provider or platform settles the transaction.

Had you use a traditional (Visa/Mastercard) credit card, the pre-authorization would be shown as such on a separate credit card statement and the amount would never be withdrawn from your current account until step 3. With a debit card, there is no separate card statement or deferred payment so even a pre-authorization results in the money being withdrawn from your bank account.