| Have you ever heard of credit card blocking? Do you | | | | car company. This would be done because they were |
| know what it is and how it might affect you? If you | | | | not notified of the final charge from the hotel or car |
| are not sure what blocking is, this article may be able | | | | rental company and therefore would not know you |
| to clear up some of the mystery. | | | | had paid another way. |
| If you were ever told that you were over your credit | | | | The reason blocking is used is to make sure you do |
| limit (when you knew you were not over the limit) you | | | | not go over your credit limit before checking out of a |
| may have experienced credit card blocking. This | | | | hotel or returning a rental car; both of which would |
| seems to happen a lot when consumers are paying | | | | leave the merchant unpaid. |
| for hotels or rental cars. | | | | For those people who are well below their credit limit, |
| When you use your credit card to check into a hotel | | | | blocking is usually not a problem. However, if you are |
| or to rent a vehicle, the hotel or rental company will | | | | getting close to your limit you will want to be careful. |
| normally contact the company that issued your card in | | | | Not only can it be embarrassing to have your credit |
| order to give them an estimated total of your | | | | card refused, but it can also present big problems if |
| transaction. The credit card company will then either | | | | you need a room or a car and do not have cash in |
| approve or deny the amount. If the transaction is | | | | your pocket to pay for them. |
| approved, your available credit is immediately reduced | | | | Here are some tips to help you avoid being blocked. |
| by this amount. This is a block. | | | | Always consider paying your rental car, hotel, or motel |
| An example might clarify the way this works. Assume | | | | bills with the same card that you use at the beginning |
| that you are using a credit card when you check into a | | | | of the transaction. You may also want to ask the clerk |
| $100-a-night hotel and you are going to stay for five | | | | or rental rep to tell you the full amount that they are |
| nights. At least $500 would be blocked ($100 x 5 | | | | going to request from the card company. In the event |
| nights). Here is where it can begin to get tricky. | | | | you choose to use another payment method when |
| If you pay the hotel or rental bill with the same card | | | | checking out or paying the final bill for rental make sure |
| that you presented earlier, the final charge from the | | | | you ask the clerk to remove the block. |
| hotel or rental company will replace the block in a day | | | | You may also want to call your credit card company |
| or two. If you decide to pay the bill with a different | | | | and ask them how long they block credit lines for |
| card, however, the credit card company you used at | | | | these types of transactions. If you do a lot of traveling, |
| check-in might hold the block for up to 15 days after | | | | you may want to find a company that use shorter |
| you have checked out of the hotel or paid the rental | | | | block times. |