Credit card ‘block’ may be a hassle
If you have recently made a large purchase using your debit or credit card, be aware that a “block” could be placed on those accounts.
According to the Federal Trade Commission (FTC), when you use a credit or debit card to check into a hotel or rent a car, the clerk usually contacts the company that issued your card to give an estimated total. If the transaction is approved, your available credit (credit card) or the balance in your bank account (debit card) is reduced by this amount. That is a “block.” Some companies also call this placing a “hold” on those amounts.
Blocking is used to make sure you do not exceed your credit line (credit card) or overdraw your bank account (debit card) before checking out of a hotel or returning a rental car, leaving the merchant unpaid. Restaurants, for anticipated sizable bills (like a large group dinner or a party) sometimes use blocking. Companies cleaning your home and other businesses use blocking to ensure credit or account money will be available to complete payment.
Blocking can sometimes cause you, the cardholder, aggravation and embarrassment. By using your debit or credit card after a block has been placed on your account, future transactions can be declined or you could go over your credit card limit. To avoid such hassles the Better Business Bureau, along with the FTC, offer these tips:
• When you check into a hotel or rent a car – or if a restaurant or other business asks for your card in advance of service – ask if the company is “blocking,” how much will be blocked, how the amount is determined and how long the block remains in place.
• Consider paying hotel, motel, rental car, or other “blocked” bills with the same credit or debit card you used at the beginning of the transaction. Ask the clerk when the prior block will be removed.
• If you pay with a different card, by cash, or by check, remind the clerk you are using a different form of payment and ask them to remove the prior block promptly.
If you need additional information, contact the Better Business Bureau at (615) 867-0032 during regular office hours and 24 hours a day at (615) 242-4222. You can also visit our Web site at www.middletennessee.bbb.org.