{"id":132120,"date":"2024-11-11T18:00:35","date_gmt":"2024-11-11T18:00:35","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2024\/11\/11\/5-things-you-need-to-know-about-debit-and-credit-card-holds-the-points-guy\/"},"modified":"2024-11-11T18:00:35","modified_gmt":"2024-11-11T18:00:35","slug":"5-things-you-need-to-know-about-debit-and-credit-card-holds-the-points-guy","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2024\/11\/11\/5-things-you-need-to-know-about-debit-and-credit-card-holds-the-points-guy\/","title":{"rendered":"5 things you need to know about debit and credit card holds – The Points Guy"},"content":{"rendered":"


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If you’ve ever checked your credit card or bank account after a gas station purchase or during a hotel stay and noticed “pending” charges larger than what you’ve actually spent, then you’re likely well aware of what’s known as “holds.” A hold is an amount charged to your card when you pay for something that doesn’t have a set total, and it is required by card networks, including American Express, Visa and Mastercard, for certain purchases.<\/p>\n

Holds allow the merchant to ensure that you have the money available for your purchase. Hotels use them<\/a> as a way to protect themselves from paying for any damages guests may cause, which, in return, usually makes guests more respectful (which you should be anyway). Additionally, it also covers any incidental purchases you may charge to the room during your stay, such as meals in the hotel restaurant or spa services.<\/p>\n

One thing I have noticed in my travels is that the more expensive hotels will authorize larger hold amounts compared to less expensive properties. Even if you’ve redeemed points<\/a> for the stay, the hotel will want a card to place a hold on, so if you’re redeeming points for a premium, luxury property, be warned that the hold amount may be substantial.<\/p>\n

Why are holds sometimes problematic? If you’re a new credit card holder<\/a> and don’t have a large credit limit or you’re using a debit card and don’t have a ton of money in your checking account, holds can prevent you from making a purchase or completing a hotel stay or rental car booking \u2014 even if you do have the amount of money needed for the actual purchase. Here are five important things about holds you need to know.<\/p>\n

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Holds are different on credit cards vs. debit cards<\/h2>\n

When a hold is placed on a credit card, it affects your available credit line<\/a>. These holds are lifted once the merchant has approved the final total. Assuming you have available credit and are not close to maxing out your card, it’s almost always better to put a hold on a credit card where your credit line is typically higher than your debit card balance. Using a rewards credit card<\/a> also means you’ll earn points, miles or cash back for your completed transaction.<\/p>\n

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