Another Debit Card Issue

Maybe my DH is right, I do listen to a lot of talk radio - but is is too much?

A while ago I posted how a friend was ripped off after a failing airline went bankrupt and a belief that the Visa Logo on her Debit Card would afford her protections. I'm still amazed that they are out so much money with no recourse. Bad, Bad Debit Cards!

Yesterday, I'm flipping through my regular talk shows and I hit one that peaks my interest enough to stop and listen. This time, some guy had used his debit card to stay in a hotel.

The hotel ran the card and created a standard "Block" for what they believe the charges to be, plus a pre-determined addition. The pre-determined addition, is like insurance for them. In case this guy wrecks the room, they want to be sure they can recover the cash for repairs and cleaning.

You all probably have seen blocks before, when logging into your online credit cards. Mine show them in a "pending" sales. In layman's terms they are blocking your future use of this money for a period, to insure they are paid later.

You may go out all night and spend a fortune partying with folks and not have the money in the morning.

Check out this site if you want a more in depth description.

Normally, there is no issue here, with a credit card. At least not for me. I would never go to the max and I have back ups.

This poor guy though, didn't use a credit card. The hotel issued the block and in the morning he paid and checked out. Doing his part. Being a good customer.

Well, the hotel didn't take the block off.

I'm assuming they blocked such a large amount and then with the actual payment they covered the majority of his balance. Leaving him virtually penniless. It took him 6-8 weeks to get that cash freed.

Are debit cards worth this kind of hassle?

Not for me.