New Credit Card Authorization Holds

[Farro]

The hold for our hotel this past weekend 100% affected the available credit on our credit card, FWIW. It was not a debit card.

Thank you for the info! I'll just plan for it.

 

[Ralphmiller007]

Thank you for the info! I'll just plan for it.

Sure! I specifically paid attention to it due to the new Disney policy haha.

 

[creativeamanda]

The hold for our hotel this past weekend 100% affected the available credit on our credit card, FWIW. It was not a debit card.

This, too, has been my experience.

In the past, I've only used my Magic Band to post charges back to my room for tips on the dining plan. This will be the first time I've had to pay the parking fee, so I almost feel like I might have up to $314 unavailable on my credit card at one time. This is not a huge problem , but I can see how if someone used their debit card on their file or a secured credit card or the like, it could be a major hassle for them. Disney still is not doing what the industry does. When I was in Dallas last year, at check in, they did an automatic $100 hold on my credit card, then the next day, they did an additional $25/night hold for the rest of the trip. So I had 2 holds--one at $100 and one at $75. I never did charge anything back to my room (I could have), and about 5 days later, the holds were returned to my card. Potentially, had I charges something to my room, on check out day (it was a 4 night stay), I would have had holds for $175 plus the amount I charged. This idea of Disney going back and doing incremental holds of $100 multiple times throughout a stay is not what I call Magical, especially if someone had carefully budgeted their trip.

 

[Best_Vacation_EVER!]

In our December 2018 trip the old Disney way was still in force so we weren't impacted by the change at WDW yet -- but it seems really shortsighted. Totally get that they need to control fraud/scammers but this will likely affect them in ways they might not expect.

During our Dec 2018 trip we also stayed 3 nights at HRH at Universal. They actually told us at check in that they'd be doing a authorization of $200 per night of stay if we wanted to charge to the room. They asked if we thought it would cover what we expected to charge --- it was going to so we didn't ask for a higher amount (and they didn't say what would happen if we exceeded that amount --- which we didn't).) They also dropped the hold fairly quickly so in looking at my statement it looks like they hold dropped the day after the actual charge appeared. 100% happy with how HRH handled this.

I really don't see why WDW can't do the same thing.... For people who do regularly charge to the room they probably have a pretty good idea of how much WDW should authorize for.... why not go that route instead of doing repeated $100 amounts? Those who don't charge won't be impacted by the $100 limit (beyond the $100 amount) and those who do can authorize a hold for a higher amount (which theoretically would allow them to apply cash/gift cards before they reach that amount) --- making the situation better for most.

To be honest I could see the $100 hold thing as being something would make us spend less at WDW.

 

[bluezy]

The hold for our hotel this past weekend 100% affected the available credit on our credit card, FWIW. It was not a debit card.

That was also my son's experience a few weeks ago. I've mentioned this earlier in this thread but here is a summary of his experience. He has a Chase Freedom credit card with a $1500 credit limit. Had about $250 in charges on his card when he checked in at a large ski resort in VT. Paid off the balance of his reservation at check-in ($750). Was informed that the resort would be putting a $250 hold on his card for incidentals. He knew this before check-in and was fine with it. An additional $250 hold was placed on the card on day 4 of the stay (he was not aware that would happen). He did not charge anything to his room and did not use that card for anything else while in VT. On the drive home, he stopped to put gas in the car and the card was denied. Long story short was that he was over his credit limit due to the holds (confirmed by looking at his account online and calling Chase). His credit limit was completely eaten up by the $1,000 of actual charges and the $500 in holds. He called the resort and they said they had released the holds when he checked out (he checked out in person at the desk) but had no control over when Chase would remove them from his card. Chase did not drop the holds for another 5 days. Fortunately he had another credit card he could use.

So Disney can say they will release the holds as soon as the charge goes through, but that doesn't mean the bank/card issuer will release them immediately. And from what I've read on various message boards, A LOT of people find that their credit card issuer doesn't drop the holds for 3-5 days after the charge has been put through and it does go against their credit limit (why wouldn't it? It's a "guarantee" that you have credit available for a potential charge.).

 

[PrincessDuck]

A hold is an authorization and the hold does not turn into a charge until 1) the merchant selects the amount to charge 2) the batch is closed
a charge will NOT be separate from a hold. Once Disney charges you all holds will be removed and a charge will occur and the cycle starts over if they charge you more than once during your stay.
when you make a purchase in any store the purchase in fact is an authorization an authorization can be become a charge for up to 30 days but this is dependent on your card some are less. For the authorization to become a charge 2 things must occur 1)the sale must go through as a charge or in the case with Disney and most internet orders the sale must be selected to charge once the item is sent out 2) the batch must be closed -- batches are closed by most at a designated tome at night like 10PM with the newer systems in some stores only the batches close every 5 minutes. for those who ask why-- an authorization is good UP to X amount of days and a bank can pull that authorization anywhere from 1 second to X amount of days after it is issued so when the batch is closed that sale will come back as denied and you loose the money.
For a credit card an authorization will not effect or show up as part of your limit and will drop off as even showing after a few days as above the authorization is actually good for up to 30 days in most cases. An Authorization hold is good a specific number of days in this case it should be 5 or when you check out and than drop off however once again once a charge is made the hold is removed. With an authorization hold your credit limit will be reduced by the amount of the hold. For debit cards yes a hold will be put on the money in your bank account. How long the hold will last will once released by the vendor will vary by bank so call you bank and ask.... as here potentially you will have up to an extra 99.99 held if Disney follows what I read as they will only place another hold for 100 once you go over what they have a hold on. Or you will have a 100 hold if you charge nothing to your room. For both all holds will have to be released once you check out for a credit card it turns into an authorization will has no effect on your spending limit and as above is in fact still good for up to 30 days the same happens with any online order that is never completed in full or at all... but the authorization will drop off your pending after a few days. Some limited credit cards and debit cards the hold will stay for X amount of days as specified by your bank.
While some may not like the new policy it is nothing new and it has been done to your credit or debit card in the past if you placed an online order....
P.S. a hold does not activate an exchange rate as it is not a charge and refund it is a hold with intent to charge and exchange rate only happens when you make a charge.

The difference in the authorizations that you are referring to is that the hold amount and the amount charged will be equal. I agree that I see this happening when I make a purchase where that amount falls off before or as the charge is coming thru and doesn't mess up my account. The hold amounts and the amounts charged are very likely not going to match up, therefore the holds may take longer to fall off the account than if they did match. I disagree with you saying that the hold will automatically fall off when the charge goes thru. I think that this new policy is being put in place for a valid reason, but I do believe that it is going to cause some different problems for people.

 

[3threebabies]

So I have senior frontline retail experience, web retail and accounts receivable. I am also anal about watching my credit card accounts and am very interested by how different credit card companies handle authorization holds.

The biggest thing I see repeated multiple times that I don’t get from official Disney statement: multiple incremental $100 holds. I have read policy as currently written multiple times and this entire thread. I take the incremental holds to read that as you spend, Disney will run the card for authorization and cut off magic band when card declined. So, with my package, Disney gets approval for $100. Then I pay tip for dinner (we usually ddp) for $50, and Disney runs card for $50. 2 holds total $150. Then I shop and spend $115, so a new authorization hold. I end the 1st night with $265 in holds and a spend of $165. I don’t see how the policy describes nor how the accounting would make sense for holds to be in $100 increments only. I take the increments to be per purchase, daily spend, etc. I think 2 or so other people described it somewhat similarly, but either a bunch of people or the same few posters have mentioned $100 additional holds a lot.

The bigger issue is how Disney will convert the authorization holds to a charge and how the card company releases holds that do not convert. Most of the theories posited are possible and reasonable depending on POS software and back office IT. There could be double holds or not; I have experienced both for different vendors in retail and hospitality. I also find that my cobranded American Express card releases holds very slowly in comparison to the rest. In addiiton, they pull amounts for gas purchases set by the vendor. I have had anywhere from $75-200! It can often take 5 days for the purchase to clear the “batch.” I have Chase cards that don’t place authorization holds for my gas purchase against my open to buy until after the batch is released. And while for years I have heard that restaurants will authorize amounts higher than meal cost to account for tip, I have never had that happen. We eat out a lot at mom and pops, national chains and luxury white table cloth restaurants.

Unless someone from Disney accounting speaks to the subject, we can’t know for certain until the rollout. Car rental companies and hotels have warned debit card users for quite some time rearing hold policies. As a former senior frontline retail manager, I hope front desk CMs are well trained or can quickly speak to a senior customer service or accounting CM for backup.

 

[toppi714]

I understand that there is a policy that will be installed, but I have dealt with Disney charging my credit card $800 two months after I visited. It was unexpected and there was no call, email or notification that they would do this 5 days before Christmas. I was unable to travel home and it took Disney over a month to refund me. Is it legal for Disney to hold and charge a card months after visiting? I would love any feedback if anyone knows the policy or has experienced this themselves. Thank you! Hakuna Matata I guess.

 

[creativeamanda]

Okay, now I have a different, yet similar situation. . . yesterday I made a payment towards my package of $200. My bank gives me the warning I made a purchase online (I have them do that for any charge over a certain (very low) amount online. This morning, I check my available credit, and that charge is gone. This is the normal thing with Disney and my credit card company (Capital One). They place a hold one day, it's gone the next, and then reappears in two more days.

I think the issue with people is how banks do it. Because my husband made a payment on the trip last month with his US Bank credit card, and they just converted the hold to a charge, without ever dropping the hold.

Some banks drop holds overnight. Some wait until the actual charge. Some (and I think Chase does this most often), hold for 3-5 days, even when a charge has been finalized.

It's almost like we have to not only figure out what Disney is going to do, but also our own banks' rules.

 

[PrincessArlena'sDad]

So I have senior frontline retail experience, web retail and accounts receivable. I am also anal about watching my credit card accounts and am very interested by how different credit card companies handle authorization holds.

The biggest thing I see repeated multiple times that I don’t get from official Disney statement: multiple incremental $100 holds. I have read policy as currently written multiple times and this entire thread. I take the incremental holds to read that as you spend, Disney will run the card for authorization and cut off magic band when card declined. So, with my package, Disney gets approval for $100. Then I pay tip for dinner (we usually ddp) for $50, and Disney runs card for $50. 2 holds total $150. Then I shop and spend $115, so a new authorization hold. I end the 1st night with $265 in holds and a spend of $165. I don’t see how the policy describes nor how the accounting would make sense for holds to be in $100 increments only. I take the increments to be per purchase, daily spend, etc. I think 2 or so other people described it somewhat similarly, but either a bunch of people or the same few posters have mentioned $100 additional holds a lot.

The bigger issue is how Disney will convert the authorization holds to a charge and how the card company releases holds that do not convert. Most of the theories posited are possible and reasonable depending on POS software and back office IT. There could be double holds or not; I have experienced both for different vendors in retail and hospitality. I also find that my cobranded American Express card releases holds very slowly in comparison to the rest. In addiiton, they pull amounts for gas purchases set by the vendor. I have had anywhere from $75-200! It can often take 5 days for the purchase to clear the “batch.” I have Chase cards that don’t place authorization holds for my gas purchase against my open to buy until after the batch is released. And while for years I have heard that restaurants will authorize amounts higher than meal cost to account for tip, I have never had that happen. We eat out a lot at mom and pops, national chains and luxury white table cloth restaurants.

Unless someone from Disney accounting speaks to the subject, we can’t know for certain until the rollout. Car rental companies and hotels have warned debit card users for quite some time rearing hold policies. As a former senior frontline retail manager, I hope front desk CMs are well trained or can quickly speak to a senior customer service or accounting CM for backup.

Disney has said directly they will run a charge every 5th day, and at check out. You are right, it does not specify whether or not all holds will be rounded to the nearest $100, or just enough to be balance due plus $100, but it doesn't matter which way they do it. The important point is that the mount of the charge on the 5th day or check out will not match any of the individual holds. Therefore, the holds will not convert to charges, and hence we know there will be double holds.

 

[3DisneyBuggs]

I have room only and didn’t receive an email either. Will Disney notify you if their auth isnt approved? Imagine a bunch of guests trying to pay for dinner with their magic band and its rejected. I enjoy just using my magic band in the park, now I have to bring a back up payment. Im going to inform my credit card of my travel plans and of possible multiple auths going through. I cleared up my debit card problem, I had no celll number on file for verifications and trying to pay a WDW room triggered a security check.

 

[PolyRob]

I have room only and didn’t receive an email either. Will Disney notify you if their auth isnt approved? Imagine a bunch of guests trying to pay for dinner with their magic band and its rejected. I enjoy just using my magic band in the park, now I have to bring a back up payment. Im going to inform my credit card of my travel plans and of possible multiple auths going through. I cleared up my debit card problem, I had no celll number on file for verifications and trying to pay a WDW room triggered a security check.

Did you already do online check-in? Not sure if this triggers the notification, but I am thinking it affects it.

I would hope the "front desk" would call/text the mobile number on file or send an e-mail to the registered MDE if an authorization fails. You could probably even update the card on file via MDE on your phone. Maybe there could even be a push notification from MDE? That last one is probably asking too much. We're lucky MDE even loads half the time.

 

[3threebabies]

Disney has said directly they will run a charge every 5th day, and at check out. You are right, it does not specify whether or not all holds will be rounded to the nearest $100, or just enough to be balance due plus $100, but it doesn't matter which way they do it. The important point is that the mount of the charge on the 5th day or check out will not match any of the individual holds. Therefore, the holds will not convert to charges, and hence we know there will be double holds.

So do you have double holds from restaurants when you tip after card is swiped? Or when card pulls a set amount for gas but you actually fill with a different amount? Or if a internet/phone order has substitutions/cancellations? I usually don’t, but as @creativeamanda reiterated it depends on card company. I have had hotels single and double hold for sundries depending on chain. I have had internet orders transition from hold amount to actual spend, and I have had double holds while orders process. How the batch is processed determines how the hold converts to charge; vendor, card processor and individual credit card companies all come into play. That is my experience as consumer and accounts receivable.

Edited to add: A lot of processing intricacies boil down to money. Charges, adjustments and returns all cost the vendor money. As stated by a few previous posters, Disney can negotiate credit card processing fees that very few other companies can.

 

[PolyRob]

So do you have double holds from restaurants when you tip after card is swiped? Or when card pulls a set amount for gas but you actually fill with a different amount? Or if a internet/phone order has substitutions/cancellations? I usually don’t, but as @creativeamanda reiterated it depends on card company. I have had hotels single and double hold for sundries depending on chain. I have had internet orders transition from hold amount to actual spend, and I have had double holds while orders process. How the batch is processed determines how the hold converts to charge; vendor, card processor and individual credit card companies all come into play. That is my experience as consumer and accounts receivable.

Edited to add: A lot of processing intricacies boil down to money. Charges, adjustments and returns all cost the vendor money. As stated by a few previous posters, Disney can negotiate credit card processing fees that very few other companies can.

I always have a hold on my CC for gas in addition to the pending charge. Restaurants can vary, but sometimes I leave tip in cash.

As for online, I had a credit card backup hold from ShopDisney for an order placed on 1/16 with a gift card just drop off today! I received the item back on 1/23. CRAZY!

 

[sponica]

I always have a hold on my CC for gas in addition to the pending charge. Restaurants can vary, but sometimes I leave tip in cash.

As for online, I had a credit card backup hold from ShopDisney for an order placed on 1/16 with a gift card just drop off today! I received the item back on 1/23. CRAZY!

I had a Marriott do 25 dollar holds for EACH charge to the room, even if it was a pack of gum for 5 dollars. And since it was a Friday night, that money was unavailable until everything was reconciled at close of business on Monday. By the time of our next trip, we should be in a better financial place where we can use a credit card for incidentals instead of a debit card so I won't be as concerned...

 

[tink2]

I am very ready to see how this goes with Disney. I hope people will post their experiences. I will be using a credit card instead of debit.
We have 4 'adults' staying for a week (myself, dh, and two teenagers). We always charge everything to our magic bands- including meals (no meal plan). Can I expect $100 holds per day you think? Meaning 6 nights is $600 in holds- because we will most certainly go well over the $100 hold every day if we eat at all..... lol

 

[PrincessArlena'sDad]

So do you have double holds from restaurants when you tip after card is swiped? Or when card pulls a set amount for gas but you actually fill with a different amount? Or if a internet/phone order has substitutions/cancellations? I usually don’t, but as @creativeamanda reiterated it depends on card company. I have had hotels single and double hold for sundries depending on chain. I have had internet orders transition from hold amount to actual spend, and I have had double holds while orders process. How the batch is processed determines how the hold converts to charge; vendor, card processor and individual credit card companies all come into play. That is my experience as consumer and accounts receivable.

Edited to add: A lot of processing intricacies boil down to money. Charges, adjustments and returns all cost the vendor money. As stated by a few previous posters, Disney can negotiate credit card processing fees that very few other companies can.

For gas and tips at restaurants, they go in and change the dollar amount of the original authorization, without generating a new authorization number. This can be done for charges, as well holds (when the system the merchant uses allows it). However, the dollar amount can only be changed the same day. Next day you need a new authorization number.

So, when Disney charges to the card on every 5th day, they can't use the authorizations from days 1-4 unless amounts are the same. Also, they will only want to charge card once (lower transaction costs that way) than multiple times on that 5th day (or check out).

Much easier for Disney to charge the card with a new authorization, and release all previous holds.

 

[PolyRob]

I am very ready to see how this goes with Disney. I hope people will post their experiences. I will be using a credit card instead of debit.
We have 4 'adults' staying for a week (myself, dh, and two teenagers). We always charge everything to our magic bands- including meals (no meal plan). Can I expect $100 holds per day you think? Meaning 6 nights is $600 in holds- because we will most certainly go well over the $100 hold every day if we eat at all..... lol

Based on the information we currently have, I think you would have multiple $100 authorizations per day.

Say you spend about $250 each day, that means 3, $100 authorizations each day. So that would be 15 $100 holds, charge the card on day 5, then 3 more $100 holds on day 6 and and charge at check-out.

 

[tink2]

Based on the information we currently have, I think you would have multiple $100 authorizations per day.

Say you spend about $250 each day, that means 3, $100 authorizations each day. So that would be 15 $100 holds, charge the card on day 5, then 3 more $100 holds on day 6 and and charge at check-out.

ok I get it to a point, but that is insane. They need to offer pre paying~ like put a certain amount in your account at the desk to cover what you will spend and whatever isn't spent can be returned at check out. We could potentially have $2000 in holds. I'm glad we're finding this out now. I will be rethinking how we pay. We absolutely are going down there with the amount we think we should spend~ maybe a couple hundred over in case~ but definitely not $2000. I will not be using a debit card for sure~ but even on a credit card~ that potentially could hurt a lot of people~ depending on how the cards operate with holds and such.
Wow.
I understand why they need to do this, but they also need to offer pre paying for guests who want to avoid these charges.

Very interested to watch how this plays out in the next couple of months

 

[PolyRob]

ok I get it to a point, but that is insane. They need to offer pre paying~ like put a certain amount in your account at the desk to cover what you will spend and whatever isn't spent can be returned at check out. We could potentially have $2000 in holds. I'm glad we're finding this out now. I will be rethinking how we pay. We absolutely are going down there with the amount we think we should spend~ maybe a couple hundred over in case~ but definitely not $2000. I will not be using a debit card for sure~ but even on a credit card~ that potentially could hurt a lot of people~ depending on how the cards operate with holds and such.
Wow.
I understand why they need to do this, but they also need to offer pre paying for guests who want to avoid these charges.

Very interested to watch how this plays out in the next couple of months

Agreed! I plan to use Disney gift cards to pay off all my MagicBand charges. I will probably end up checking out with about $3000 between a split stay in holds on my CC. I have the CL, but it will be annoying if it doesn't drop off fast.