€1/ £1 charge when adding a bank card

Updated 3 months ago by Xavier Mayo

Whenever you add a new card to the app, Lydia sends a request to the bank associated with that card in order to activate the 3D Secure process. This is a security measure to protect against theft or unauthorised use of your card.

3D Secure was developed several years ago to protect online card payments. As such, Lydia, like many other companies, is obliged to carry out a test transaction. This is the €1 (or £1 if you have a Lydia account in Great British Pounds) transaction you see after adding a card.

However, Lydia never actually charges you this €1/£1. It is a card authorisation which, once requested, is immediately cancelled.

Most affected users never actually see this activity, however some cards, such as prepaid cards, are debited immediately, and notify users in real-time that Lydia has executed this authorisation.

Similarly, some card providers do not recognise the cancellation of this card authorisation requested by Lydia, and in fact wait up to ten working days before cancelling it. During this time, €1/£1 is frozen on the card, but remains in the user's account. This money is never sent to Lydia.

How did we do?