Interesting Change to Credit Card Authorizations at Check-in

[Dean]

We've used a debit card on occasion. It does tie up the funds in your account. Though a credit card does the same and depending on your current balance and limit it could push someone close. I haven't notice with a debit card where they took the funds and then later refunded them. It seemed to work in the same way with the authorization falling off after five business days. Though I suspect it depends on the financial institution.

I seem to recall reports of it taking longer up to 30 days. My issue with the Debit card isn't that though, if I'm cutting it that close I don't need to be going on vacation. My issue is the added risks with the Debit card.

 

[michael49]

That would be the state TSO timeshare occupancy tax. Though it seems low. You're saying they did not place a hold on your card at checkin?

They placed a hold upon check-in of $200 for our entire two week stay. They then formally charged my credit card at the end of each week (mostly for the Hawaii occupancy tax) and the $200 hold was eliminated at the end of the first week. As for the daily "holds" they were only $2.39 per day.

 

[daviator]

We've used a debit card on occasion. It does tie up the funds in your account. Though a credit card does the same and depending on your current balance and limit it could push someone close. I haven't notice with a debit card where they took the funds and then later refunded them. It seemed to work in the same way with the authorization falling off after five business days. Though I suspect it depends on the financial institution.

You have legal protections when using a credit card which do not exist when using a debit card. That alone is sufficient reason to never use a debit card for most purchases. For example, the ability to dispute a charge for a product or service that was not delivered as promised is a right you only have when paying with a credit card.

When you add to that the value you can get from whatever rewards your credit card might provide… from travel points to cash back… I think it’s foolish to use a debit card for much of anything.

There are some businesses who now add an extra fee when paying by credit card. I tend to avoid returning to such businesses, but such a charge might be a valid reason for paying by debit card, so long as you’re ok with giving up your right to dispute the charge if there is a problem.

 

[Ken555]

You have legal protections when using a credit card which do not exist when using a debit card. That alone is sufficient reason to never use a debit card for most purchases.

Exactly. I have never used a debit card, and have no intention of ever using one.

 

[dioxide45]

You have legal protections when using a credit card which do not exist when using a debit card. That alone is sufficient reason to never use a debit card for most purchases. For example, the ability to dispute a charge for a product or service that was not delivered as promised is a right you only have when paying with a credit card.

When you add to that the value you can get from whatever rewards your credit card might provide… from travel points to cash back… I think it’s foolish to use a debit card for much of anything.

There are some businesses who now add an extra fee when paying by credit card. I tend to avoid returning to such businesses, but such a charge might be a valid reason for paying by debit card, so long as you’re ok with giving up your right to dispute the charge if there is a problem.

There are still certain legal protections when it comes to debit cards and many banks extend additional protections to debit card purchases even when not required by law. However, this thread isn't necessarily about Credit Card vs. Debit Card they both functionally work the same to make a purchase. It has also been noted by certain financial gurus, that using a debit card can be better for many people. No millionaire ever said they got rich by using their credit card to earn travel points.

 

[Ken555]

There are still certain legal protections when it comes to debit cards and many banks extend additional protections to debit card purchases even when not required by law. However, this thread isn't necessarily about Credit Card vs. Debit Card they both functionally work the same to make a purchase. It has also been noted by certain financial gurus, that using a debit card can be better for many people. No millionaire ever said they got rich by using their credit card to earn travel points.

Note that recently banks are starting to distance themselves from responsibility for fraudulent activity. Check your bank for details… this is a changing area right now, as in last week.

 

[ValChatelle44]

If you want a shocker, try the Cliffs Club in Princeville. Besides the normal occupancy tax in Hawaii, there is a parking fee and other fees which totaled #378.71 for the week. and no AC

 

[Chrispee]

Just returned from Waiohai and the only daily hold on my Marriott Bonvoy AMEX card was $2.39 each day. So this is definitely not a system wide occurrence.

The per night tax is $27.39 at Waiohai.

 

[michael49]

The per night tax is $27.39 at Waiohai.

Yes, I'm aware of that. However, the question related to the daily "holds" placed on an account, not the ultimate charge.