Why is my child’s Rooster Card overdrawn?

In normal circumstances, the Rooster Card should not go overdrawn. If the shop or merchant checks that there is money on the Card, we will always decline any transactions that exceed the Spend pot balance. However, in some (rare) instances the shop doesn’t check that there is money available on the Card, which may cause your Rooster Card to go into negative balance. We’ve outlined below why this may occur in certain scenarios, and in most cases the easiest solution is to load money onto your child’s account to make the balance positive again.

Travel (i.e. Transport for London) transactions

Travel companies sometimes let travellers travel or book a trip before they have paid the full fare. This includes using contactless on TfL where they charge you a small amount when you first tap your card to authorise your card and your journey. This means you won’t be charged the full fare until some time after your journey, as they need to wait until you finish your journey to calculate the total cost. And for TfL they wait until the end of the day to calculate your full day travelcard cost.

If there isn’t enough money on your Rooster Card when the travel company attempts to charge the full amount for your journey, this can lead to your account going into a negative balance. 

Offline transactions

Some transactions can be processed offline. This happens when the seller is unable or isn’t required to contact RoosterMoney to authorise your payment, for example, when you’re making a purchase on an airplane or train journey. In these cases, to ensure you can still make the purchase, the seller may put through the transaction without contacting us first.

As you’ve already used the services or goods provided by the seller, the company has the right to process the transaction and charge your Rooster Card in the next couple of days. If your child’s Spend pot balance falls below the amount owed to the company within this time frame, their Rooster Card balance will go into a negative balance.

Late Settlements

When you make a purchase with your Rooster Card, we receive a request to authorise the payment. When this happens, the money is taken from the card and we hold it for the seller to take later on. That amount won’t be available to spend on your Rooster Card anymore and will be deducted from your balance, which you and your child will see as a successful transaction on your statement.

The seller then has 14 days to collect the money. If they fail to collect the funds within the 14 days, we then return the money back to your Rooster Card. This will show up on your statement as a refund from the seller. 

In some cases, as the seller has already received an authorisation from us for the transaction, they can claim the funds later - as the transaction was already approved. When this happens, if your child has spent the money that was refunded and the merchant proceeds to take the funds, your child’s account may go into a negative balance.

Contactless decline

Sometimes a contactless transaction may appear as if it has gone through successfully. However, when you check your statement later, it may show that the transaction was actually declined.When this happens, the merchant’s card terminal has ignored the decline message and has provided the goods. Usually within a couple of days, they will realise that this has happened and will put an offline transaction through to collect the funds from the original transaction.

As you’ve already used the services or goods provided by the seller, the company has the right to process the transaction and charge your Rooster Card in the next couple of days