Consumer complaint received 2023-04-14
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: GA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
The following is a security concern regarding debit-card transactions posted to my bank account by unrecognized and apparently unidentifiable merchants. 

On XX/XX/XXXX a {$35.00} debit card charge appeared on my Bank of America ( BOA ) checking account initiated by a merchant identified only as ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX CA ON XX/XX/XXXX. ) Because I had not made a purchase for that amount, nor did I recognize the merchant by the posted identification, I immediately contacted bank of America. To my surprise, BOA could not identify the merchant beyond what was posted. Consequently, as a security precaution BOA cancelled my debit card. Shortly afterwards, using the XXXX search engine, I discovered that XXXX had an office located at what was seemingly a transaction identified by only a street address. Although the amount of the charge was still puzzling, I had used the service provided by XXXX on XX/XX/XXXX, therefore I contacted them seeking more information. XXXX claimed they could find no record of making the {$35.00} charge. They did verify placing a {$130.00} hold on my account. After completing the service event they released the {$130.00} hold and debited {$94.00} which was the actual amount due. As usual those transactions were clearly identified as XXXX. Despite my appeals to the CEO, XXXX has not acknowledge the {$35.00} debit transaction or the use of the obscured ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX CA ON XX/XX/XXXX ) merchant identification. 

Although the amount was relatively de minimis, I regard the unidentified {$35.00} debit transaction as a significant security concern. Accordingly, I contacted XXXX XXXX XXXX for help in definitively identifying the merchant initiating the transaction to my bank account. To date, I have not received a reply to my email sent on XX/XX/XXXX to their security team, and my call to the XXXX help center resulted in the representative declaring he could not help with the identification of the merchant. The mysterious {$35.00} debit charge was not finalized and it disappeared from my bank account after 7 business days. Nonetheless, I am left to wonder was the debit charge simply a mistake or something more serious. It is alarming to me that both Bank of America, and XXXX XXXX XXXX, were unable or unwilling to ascertain the identity of the merchant in question. I have used the service provided by XXXX for years, but I have never known them to charge my bank account with a transaction identified only by a street address. Still, I have lost confidence in XXXX because I dont believe they have been as cooperative in this security concern as they should have been. Furthermore, my confidence in the overall system for processing debit card transactions is in considerable question. 

Since the XX/XX/XXXX incident another debit-card charge, identified only by an apparent street address, was posted to my BOA bank account. I was able to more quickly determine the merchant identity as XXXX Eats. After some initial obfuscation, XXXX did confirm that the ( XXXX XXXX XXXX XXXX XXXX, CA ) merchant identification posted to my account is the address of their corporate office. Again, the debit charge was not finalized and it disappeared from my account after 7 days. Over the years of doing business with XXXXXXXX XXXX, I am not aware of them initiating a transaction to my account that was identified by a street address. I realize that it is common practice for a merchant to place an authorization hold on an account. However, the use of street addresses that mask the true identity of the merchant initiating the transaction creates opportunity for fraud. Consumer bank accounts can not be effectively monitored if merchants are allowed to initiate transactions using a variety of obscured identifications. At the very least the merchant has a responsibility to notify the consumer of just how their charges will be identified for each transaction. 

I dont know just where to direct this matter, so I hope you can help. I believe a standard for readily identifying the merchant on all transactions is needed. Of course if the transaction is to be finalized the bank has to know the merchant ID for the account to which the funds will be transferred. Nonetheless, Consumers need readily identifiable merchant identifications to validate all transactions as they are posted to their bank account. Based on my recent experience it doesnt appear that Bank of America or XXXX XXXX XXXX will take any action until and unless a charge is finalized and disputed by the consumer. I suspect there will be inappropriate charges overlooked because of the time required to meticulously track unidentified charges and ensure they are only authorization holds that will not be finalized. It appears that the consumers only current options are to simply tolerate the various identifications used by a merchant, or refrain from doing business with the merchant. In summary I think two process corrections are urgently needed : Readily identifiable merchant identification, consistent with the advertised name of the business, must be used on all transactions with real-time notification to the consumer regarding the identification to expect as the transactions are posted to their bank account. 

Card issuers need a readily available method of identifying merchants on all transactions involving the accounts of their card holders.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation