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To: jimt; rhetorica

The problem arises if/when they place a hold on the debit card for a greater amount than you spend...and it can trigger overdrafts depending on what you keep in your checking account.

When a credit card (or debit w/a Visa or MC logo on it) is swiped, first it’s authorized for an amount then 1 - 5 days later the money is actually collected. Ever notice that if you get gas on your debit card, taht it shows online as a pending transaction for one dollar, then hits the account at the correct amount a few days later?

Hotels and car rental companies (and a few others) do the opposite - they preauthorize for often MORE than they expect your bill to be (then it clears the acct at the correct amount.)

Basically, if you book a $105 room for two nights, or rent a car for $70/a day, they might authorize the card for $500 or so (not CHARGE it, but authorize it) to make sure you can cover it if you decide to stay put longer than expected...and if your account has under $500 in it, you can have an overdraft fee because of it.


100 posted on 06/29/2009 7:02:01 AM PDT by RockinRight (Obama: Math is hard, so we just make sh-t up.)
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To: RockinRight

Actually, I have not had that problem although I always anticipate it. For that very reason I have a savings account linked to my checking account. It covers any overages at no charge (fees)to me. Thus far, I haven’t had a hotel place a large hold on my card. I stay in hotels several times a month and it really hasn’t been a problem.

I try to avoid renting cars at all costs because I can usually take public transportation for much less than car rental costs.


108 posted on 06/29/2009 8:35:43 AM PDT by rhetorica
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