Credit Card Blocking
by: Developed from materials provided by the Bureau of Consumer Protection
The Basics
What is Credit Card Blocking?
Have you ever given your credit or charge card to a store clerk only to be told you were over your credit limit?
If this happened soon after you stayed at a motel or rented a car, your credit card may have been "blocked."
How Does Credit Card Blocking Work?
When you check in to a motel or rent a car, the clerk will guess the total cost. That amount is then "blocked" from your card.
This means that your available credit is reduced by the amount of what you will spend. The hotel can also "block" extra charges for other things they think you may buy during your stay, such as food or drinks.
Example: You use your credit card to check into a hotel that costs $100 per night. You plan to stay for five nights.
The hotel contacts your credit card company. The credit card company blocks $500 from your line of credit.
If your credit card has a $600 limit, then you can only charge up to $100 more on your card while the block is in place.
When Will the Block Go Away?
If you pay your bill with the same credit card when you leave or return the car, the block should be lifted in a day or two.
What If I Don't Use The Same Credit Card to Pay?
The block can then stay on the card you used to check in for as long as 15 days after you leave the hotel or return the car.
Why Do Credit Card Companies Use Blocking?
Blocking cards helps make sure that people pay for their hotels and rental cars.
How Can Credit Card Blocking Cause a Problem?
If you are close to reaching your credit limit on a credit card, credit blocking can be a problem. If you have an emergency, you may have no credit left to use on your card.
Example: You use a credit card to check into a hotel for five nights. The hotel charges $100 per night.
Five hundred dollars is blocked off your credit card. When you leave, you pay with cash instead of using the credit card.
When you get home, your son breaks his leg. You take him to the emergency room. You try to pay for the visit with your credit card.
But, due to the temporary block on your card, you have reached your credit limit. You cannot use your credit card to pay.
What Can I Do To Protect Myself?
Pay for all hotel, motel, or rental car bills with the same credit card you use to check in.
When you check in to a motel or hotel, or when you rent a car, ask how much is being blocked from your credit line. Ask how they decided on that amount.
If you pay your bill with a different credit card, with cash or a check, ask the clerk to remove the block from the first credit card.
When you choose a credit card, ask the credit card company how long credit lines are blocked when you rent a car or check into a hotel. Shop around for a credit card company that removes blocks more quickly.
Last Reviewed On: 04/12/04
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