ConsumerWatch: Debit Charge Delays Surprise Pizza Purchasers

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Visa credit cards

Visa credit cards (Justin Sullivan/Getty Images)

PETALUMA (CBS 5) – Northbay customers of Little Caesar’s Pizza restaurant are finding some surprising charges for pizza purchases they made in January. Thousands of credit card and debit charges were delayed for as long as nine months.

The charges are now showing up in customer bank accounts, and it’s triggered overdraft charges of several hundred dollars in some cases. The delayed charges were caused by an apparent glitch with the bank that processes the payments. It was discovered after the franchise owner of the Little Caesar’s restaurant in Petaluma and Rohnert Park noticed a downturn in revenue.

Customers were surprised and didn’t realize that card transaction can be held for that long. Some customers are concerned that they may have been double charged as well.

Fred Berry, franchise owner of 5 of the pizza restaurants, would not comment but issued a letter of apology.

Visa told CBS 5 that policy requires merchants to submit transactions within three days. After the first violation, merchants are given a warning. But customers are urged to contact their banks to have those overdraft charges reversed. Many banks are doing so because the Visa policy was violated.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

 

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