What is Credit Card and Debit Card Blocking? Written by John Mussi
Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, problem could have been card "blocking."What is Blocking? When you use a credit or debit card to check into a hotel or rent a car, clerk usually contacts company that issued your card to give an estimated total. If transaction is approved, your available credit (credit card) or balance in your bank account (debit card) is reduced by this amount. That's a "block." Some companies also call this placing a "hold" on those amounts. Here's how it works: Suppose you use a credit or debit card when you check into a £100-a-night hotel for five nights. At least £500 would likely be blocked. In addition, hotels and rental car companies often add anticipated charges for "incidentals" like food, beverages, or gasoline to blocked amount. These incidental amounts can vary widely among merchants. If you pay your bill with same card you used when you checked in, final charge on your credit card, or final amount on your debit card, probably will replace block in a day or two. However, if you pay your bill with a different card, or with cash or a cheque, company that issued card you used at check-in might hold block for up to 15 days after you've checked out. That's because they weren't notified of final payment and didn't know you paid another way. Why Blocking Can Be a Problem Blocking is used to make sure you don't 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 merchant unpaid. Blocking is sometimes also used by restaurants for anticipated sizeable bills (like large groups at dinner or a party), by companies cleaning your home, and other businesses to ensure credit or account money will be available to complete payment. If you're nowhere near your credit limit or don't have a low balance in your bank account, blocking probably won't be a problem. But if you're reaching that point, be careful. Not only can it be embarrassing to have your card declined, it also can be inconvenient, especially if you have an emergency purchase and insufficient credit or money in your bank account. On debit cards, depending on balance in your bank account, blocking could lead to charges for insufficient funds while block remains in place.
| | Resourceful Redecorating........ Budget Friendly Home DecoratingWritten by Cheryl Johnson
Spring is here and for many of us it's perfect time to organize and decorate. As winter passes into spring, it's out with old look and in with new look. This is a great time to bring some new ideas into your home and liven things up!Spring is a great time to find bargains on decorating accessories at yard and garage sales. As seasons change, many times your local thrift and consignment stores will have a change in inventory. This is time when many folks finally donate unwanted merchandise that's just been sitting around garage or house. Spring cleaning! My advise……..have your own yard or garage sale and make some extra money on those items. But, lucky for us frugal shoppers, there are some folks who just don't want to take time. So, be sure not to miss out on decorating supplies, furnishings, accessories, paint, wallpaper, and fabrics that can be found at many thrift stores. Sometimes pulling items from one room to another and simply re-organizing, fixing up, or just using an item in a different way can be enough. Add a fresh coat of paint, different window dressings and replacement of furnishings, and WHA LAH! You have a new room. Need some paint? If you can be flexible about color, check mis-mixed table at your local home improvement, hardware, or paint stores. You can find high quality paints for a fraction of original retail cost when colors don't turn out exactly as they should have. Sometimes you can find a slight variation of just color you've already picked that will work just as well with your selected color scheme and save you lots of money. I buy these mis-mixed paints (usually for $2-3 per gallon or less) throughout year and store them appropriately for later use. This way I go shopping in my own paint department first to see if I can accommodate decorating plan I have chosen. Planning ahead and grabbing these types of decorating supplies when they're a bargain is a great way to maximize your savings.
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