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Credit Card Query

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  • 27-11-2013 12:11pm
    #1
    swimming in a sea
    Registered Users Posts: 937 ✭✭✭


    Hi,

    Not sure if right forum so please feel free to move if necessary.

    I'm going on holidays so I've deposited €1500 into my credit card so now I have a credit balance of the €3500 as my limit is €2000.(I've done this so I can withdraw from ATM's and not have cash withdrawal charges)

    But if I arrive at my hotel and they pre-auth my card for say €1500 am I now back to €2000 and if I then withdraw money from an ATM liable for cash withdrawal charges or does a pre-auth not affect this?

    Any Help would be great


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    #2
    ToxicPaddy
    Moderators, Business & Finance Moderators, Society & Culture Moderators Posts: 9,763 Mod ✭✭✭✭ToxicPaddy


    MOD NOTE

    I'm going to move this over to Banking, Insurance & Pensions as you will get better information there.


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    #3
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    swimming in a sea wrote: »
    I'm going on holidays so I've deposited €1500 into my credit card so now I have a credit balance of the €3500 as my limit is €2000.(I've done this so I can withdraw from ATM's and not have cash withdrawal charges)

    Technical correction: you don't have a 'credit balance' of 3,500, you will have a spending limit of that amount. Your credit balance will be 1,500.
    swimming in a sea wrote: »
    But if I arrive at my hotel and they pre-auth my card for say €1500 am I now back to €2000 and if I then withdraw money from an ATM liable for cash withdrawal charges or does a pre-auth not affect this?

    The pre-auth is just a ring-fenced amount of money to protect the hotel in case you go mad spending money, blow your limit and then have you card rejected when you're paying the hotel bill. It will not count for the purposes of charging interest so it will not come out of the credit balance you have lodged to cover cash withdrawals. A pre-auth effectively reduces your spending limit but it doesn't count as a withdrawal.


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    #4
    dublin daz
    Registered Users Posts: 480 ✭✭dublin daz


    Double check your card will not attract a cash advance fee even when in credit. AIB charge on their Click and BE cards for example. Gold/Platinum etc does not charge when in credit (same as their legacy 'Standard Visa'.

    http://www.aib.ie/personal/credit-cards/Credit-Card-Fees-and-Charges


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    #5
    GerardKeating
    Registered Users Posts: 7,651 ✭✭✭GerardKeating


    swimming in a sea wrote: »
    Hi,

    Not sure if right forum so please feel free to move if necessary.

    I'm going on holidays so I've deposited €1500 into my credit card so now I have a credit balance of the €3500 as my limit is €2000.(I've done this so I can withdraw from ATM's and not have cash withdrawal charges)

    But if I arrive at my hotel and they pre-auth my card for say €1500 am I now back to €2000 and if I then withdraw money from an ATM liable for cash withdrawal charges or does a pre-auth not affect this?

    Any Help would be great

    It depends on your Bank, and they might have changed their fee structure since you last did this (unless it was very recent).

    Unless you did this with your Banks own ATM, there is a cost to your Bank, they will be charged a fee for the cash advance by the Bank that owns the ATM, even if they do not pass this fee on to you.

    Also please note (again depending on your Bank) that in the event of a fraud against your card, you are only protected up to your credit limit, so (in your case) if someone "stole" the €3,500 from your card, the bank might only give you €2,000 back.


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