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DEBIT CARD BLOCKS
Merchants have the
ability of placing a block or hold on your debit card.
Despite the fact that no money actually leaves your
checking account, a block will have an impact on your
available balance.
Suppose you have $200 in your
checking account and you pay for gas with your debit card. The
gas station blocks out $50 and you purchase $20 worth of gas.
Until that block is cleared, your available balance will be just
$130, instead of $180. As a result, you may find yourself
overdrawn and having to pay some significant fees in no time. If
this ever occurs to you, be sure to contact your bank right away
and explain the situation. You should also learn about
overdraft protection to help protect you from circumstances
like this.
Consumers that are near their
credit limits or maintain low balances in their checking
accounts should be watchful of blocking when they make
purchases.
When traveling, it is wise that
you bring an extra
credit card with you.
Be certain that you inquire
rental car companies and hotels about their blocking policies.
Prior to registering, determine exactly how much money is going
to be blocked on your card. Remind them to take-off the block
once you return the car, or depart the hotel.
Always make sure with your bank
that the block has been removed.
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