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Debit and Credit card blocking

Updated on February 8, 2014

Several times you would have got annoyed on being told that you have crossed your credit card limit or your debit card was declined on still having the credit, this annoying situations occurs most of the times soon after you rented a car or stayed in a hotel, this is called Credit or Debit card Blocking.

Credit or Debit Card Blocking?

Whenever you stay in a hotel or rent a car using your credit or debit card, tthen to give an estimated total the clerk usually contacts the office of your card issuing company, on the approval of the transaction that certain amount of money is deducted from your credit or bank balance. That is what we call a "credit card block or debit card block" also known as "hold on" on that amount by a few companies.
Lets see how it functions: say you check into a 100$- night hotel for 5 nights on your credit or debit card. At the least $500 would probably be blocked off. Additionally, hotels and renting vehicle company several times sum up expected money for "minor expenses" as if food, drinks, or petrol to the blocked sum of money. These secondary adds up can diverge broadly amid merchandisers.

If you use same card to pay your bills and to check in, then the final sum of money from your credit or debit card will put back the block up within 2 days. Still, if you pay off your bill on another card, or on hard cash or a bank check, then the card issuing company may hold up the block for 15 days or more,that will happen because the card issuing company wasn't apprised that you had paid the final bill via hard cash or bank check.

Why credit or debit card blocking is an issue?

Barring your card is utilised to make certain that you do not surpass your personal line of credit (credit card) or overstate your savings bank account (debit card) prior to checking out of a hotel or giving back a rented vehicle, resulting in the unpaid bills. Blocking is occasionally as well utilised by restaurants and other eating joints for expected size able bills (as if for big groups at dinner party), by housecleaning comapnies, and other jobs to ascertain credit or account net worth will be accessible to all over payment.

If you are nowhere close to your credit bounds or do not have less balance in your bank account, blocking likely will not be a trouble. But you should be careful at that point of time or else during an emergency purchase or insufficient cash you will find yourselves within a embarassing or annoying condition as your card will be declined. While in debit card it may lead to extra charges due to unsufficient balance in the bank account.

How can credit or debit card blocking be avoided?

To avoid facing the embaraasing conditions of blocking here are some tips:

• Ask if your debit or credit card card will be blocked, how much will be blocked, till what period that block will continue by the company while checking into a hotel or renting a vehicle - or if a restaurant or other business asks for your card in advance of service.

• Pay all the final bills with the same credit or debit card which you used at the first time while making a transaction and ask when the block will be removed.

• Make a reminder to the clerk to remove blockage while paying via cash or checks.

• Inquire your ongoing debit card issuer if they allow blockades. If they do, consider getting an overdraft line, however it may add up some interests but it may also prove beneficial.

Additionally, if you're consider a credit or debit card, shop and compare around various card issuing companies offers and check which company blocks for shortest time.
This way you can avoid the annoying situations of Debit card and Credit card blocking.


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    • profile image

      kims3003 6 years ago

      Very well done hub with great information. Glad I found you - look forward to reading more

    • pmccray profile image

      pmccray 6 years ago from Utah

      Very useful advice, marked useful voted up.

    • am@n profile image

      am@n 6 years ago

      welcome :)

    • CMCastro profile image

      Christina M. Castro 6 years ago from Baltimore,MD USA

      Thanks for the info.

    • Wealthmadehealthy profile image

      Wealthmadehealthy 6 years ago from Somewhere in the Lone Star State

      In addition to all of this, some companies are refusing to use the credit portion of a debit card so it can very possibly "wipe out" (or put on hold) all of the funds in your account. When making purchases such as this you should actually find out how much they are going to put a hold on, or use a different establishment if they are going to hold the entire amount out.

      I personally rent cars all the time and the company I use does not put a hold on anything and simply takes a print of the card and makes the entire charge after the car is returned. You need to find companies to deal with who will work with you on this as we are now relying on cards which are directly connected to our bank accounts and are not "credit cards

      perse. Good hub.

    • am@n profile image

      am@n 6 years ago

      thanks for appreciation :)

    • 2besure profile image

      Pamela Lipscomb 6 years ago from Charlotte, North Carolina

      Great hub! I try to be very careful about this, it can be embarrassing. Voted up1

    • Hello, hello, profile image

      Hello, hello, 6 years ago from London, UK

      To pau all the outstanding amounts is easily said than done. Thank you for a good advice.

    • profile image

      Anurag 6 years ago

      nice post...really helpfull