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