A question about Debit card.

[Murakumo]

What happens to a VISA debit card when all the money in it has been used or been placed for reserve for a future payment? Is it canceled/shut down/cannot be used until certain conditions have been fufilled?

And if a VISA debit card does not have enough money to do a "place aside payment money for future payment," will there be a notification that there is not enough money to make the purchase?

 

[Leggy]

You might want to check out the Visa Debit Card FAQ page. They may be able to help.

http://usa.visa.com/personal/personal-cards/debit-cards/faq.jsp

 

[MoreDeath-11]

What happens to a VISA debit card when all the money in it has been used or been placed for reserve for a future payment? Is it canceled/shut down/cannot be used until certain conditions have been fufilled?

And if a VISA debit card does not have enough money to do a "place aside payment money for future payment," will there be a notification that there is not enough money to make the purchase?

A VISA debit card is no different to a VISA Credit Card to the Merchant.

On all Visa/MasterCard/Amex Networks, payments are usually settled in the following order from the perspective of the merchant:

1. Authorization - this is the step where the merchant's credit card acquirer goes off to the network and attempts to verify that the account has enough money. If there's sufficient funds then the acquirer auto approves the authorization.

2. Capture - if a successful authorization was returned from the acquirer, the merchant can capture the transaction at this point. A capture basically means the merchant submits the charge for settlement to their bank accounts. Sometimes a merchant may choose not to capture the authorization for various reasons. A good example for authorizing the charge only is for holding funds for certain services or filling up for gas, since the pump does not know how much gas you will actually buy.

3. Settlement - Pretty much self-explanatory. The acquirer does the work and deposits the money to the merchant's settlement/bank account depending on the policies of the network.