Hold on credit card?

[torinsmom]

When a company places a hold on your credit card, does that show as a transaction? What I am asking is if I use a credit card for a hold and my available credit is not that much, will I get over the limit charges? DS's hard drive broke and I can get an advance replacement, but in order to do that, they put a hold on a credit card until the receive the old one. I do not have that much left on my credit card(low limit), and just want to make sure I don't get charged. Anyone know?

Marsha

 

[FireDancer]

Oops, duplicate post

 

[FireDancer]

Holds count towards your credit line just like purchases and authorizations do. If you have a low limit, lets say $5,000 and have a $1,000 hold you will only have $4,000 available credit. The $1,000 won't show as a transaction but will show as either an authorization or a pending transaction depending on how the merchant sends the transaction through.

In regards to an authorization or pending transaction forcing you over your limit and to incur a fee, refer to your terms and services. Some will not fee you unless purchases go over the limit. If the authorization expires without posting as a purchase it may not incur a fee. If you didn't save the T&C that came with your card you can always get it from your credit issuers website.

 

[torinsmom]

So, if I have a $1000 limit and $900 balance, and this hold is $170, will that put me over the limit, since it is not a transaction? Or would the company puttimg the hold on even approve the hold if my limit is not high enough?

I may just need to do the other option and send the drive in first. Just trying to speed things along though. I have a credit card with plenty to spare, but I have a cat having surgery on Monday and don't want to tie those funds up in case there are unexpected expenses. Thought I'd just use the one I no longer use(trying to pay it off) if that was possible.

Ooops, sorry, I see you answered my question in the second reply. I will check the website and see what it says.

Marsha

 

[FireDancer]

So, if I have a $1000 limit and $900 balance, and this hold is $170, will that put me over the limit, since it is not a transaction? Or would the company puttimg the hold on even approve the hold if my limit is not high enough?

It would probably fail but depends on the card. Some will have a little bit of a float amount that would let you go over. It may or may not incur a fee. If the $170 never hits it might not incur the fee that the overage would otherwise have caused. For the fee info you would have to check your issuers terms & conditions. You can always ask for an increase in the credit line. If you have good credit I would think you can ask they to increase your limit a couple of hundred dollars.

 

[torinsmom]

I don't really want to ask for an increase, as I want to pay it off and could be tempted to use it. I just did the standard replacement. DS can do without a laptop for a week or two. We just replaced the hard drive in March is what makes it even worse.

Marsha