Preauthorization on Debit cards

Jon Stark

I'm not sure if this is the right forum so please move if not.

We recently travelled abroad and booked a hotel which required taking a preauthorization of the full cost. When they did this initially they took the same amount twice in error, but in fairness to them they returned the amount taken in error pretty quickly, while keeping the preauthorized amount.

All reasonable so far I guess. The problem starts though upon arrival when we we were asked to sign a "release" of the preauthorized amount while also being informed that they were taken final payment.

We left on the 22nd of this month and this preauthorized amount still has not been returned to us. So my question is how long does it typically take for a preauthorization to lapse, and if this is common practice? Having travelled across Europe and Australia I've never come across this before.

irishgeo

Jon Stark wrote: »

I'm not sure if this is the right forum so please move if not.

We recently travelled abroad and booked a hotel which required taking a preauthorization of the full cost. When they did this initially they took the same amount twice in error, but in fairness to them they returned the amount taken in error pretty quickly, while keeping the preauthorized amount.

All reasonable so far I guess. The problem starts though upon arrival when we we were asked to sign a "release" of the preauthorized amount while also being informed that they were taken final payment.

We left on the 22nd of this month and this preauthorized amount still has not been returned to us. So my question is how long does it typically take for a preauthorization to lapse, and if this is common practice? Having travelled across Europe and Australia I've never come across this before.

The pre auth amount be returned it should have come the full amount with anything extra added to the bill.

If the pre auth amount wasn't finalised it should have been returned to you in around 8 to 10 days.

A pre auth is like a deposit.

Jon Stark

Thanks for the reply! I understand the concept behind the pre auth, I'm just a bit concerned at this stage.

Both the bank and hotel are adamant that everything is fine on their end, with the bank telling us to contact the hotel and vice versa.

Nervous Wreck

Pre auth is 7 days. Should be returned to you at close of business today!

Jon Stark

Confident prediction! Hopefully you're right, will report back tomorrow.

Jon Stark

OK so I'm really confused, this is the latest timeline provided to us:

We are sorry for the late reply.

Hope this e-mail finds you well.

We have called the VISA company to check the charges on your credit card from the Hotel.

They confirmed the following;

• On the 28th August, we’ve charged your credit card at 12.08 noon for the amount of Euro 975,60 but refunded it right away on the same day.

• On the 28th August, we’ve performed the pre-authorization but they can’t see it anymore as the pre-authorization was expired already so the money was already in your account (pre-authorization was valid only for 2 weeks).

• On the 10th September, we’ve performed again the pre-authorization (please checked our confirmation stating that we need to perform the pre-authorization 2 weeks before your arrival) but this pre-authorization has been closed upon your arrival and we we’ve made the final payment (so we’ve used the pre-authorization made on the 10th September for the final payment on the 17th September 2015 upon your arrival).

On their system there was only 1 charge from the Hotel and it was on the 17th September 2015 when we closed the pre-authorization.

If you prefer you can call and ask directly the VISA company to re-confirm the above e-mail.

I'd appreciate if someone can make heads or tail of this for me? It's an issue I'm trying to fix for a family member so haven't been able to check with him if the money was returned today.

All of this talk about the visa company not being able to see an expired pre-auth has me concerned that something has been lost. The person is indisputably down €975.60, bank statements back this up.

Nervous Wreck

So the refund hasn't hit the account yet?

leem8

I used to work for a hotel - and I used to pre-auth clients cards all the time. We actually refused to preauth debit cards as while the preauth should fall off a credit card within a few days, usually when the transaction completes, with a debit card it can take longer. We used to preauth debit cards but found customers funds weren't being released for up to 6 weeks. Apparently it's something to do with visa (majority of debit cards are issued as visa - even though MC is out there) Not the most insightful info but hopefully this helps!

Jon Stark

Thanks for the insight Leem from the hotel perspective, and yeah starting to think it's not the hotel's fault. It's a visa debit card alright. Mental to think it might take 6 weeks but I'd accept it if visa actually confirmed that. Right now there just seems to be vagueness from all sides.

WheatenBriar

Never ever use a debit card for a pre auth
I did once, it took 30 days to return :eek:

Use them only for payment
Use a credit card for pre auth

It will come backto you but watch it doesn't accidentally fully charge
If it does, you'll still get it back by calling the bank requesting a charge back but thats more time
Lesson learned

Jon Stark

Lesson most definitely learned! Thanks lads, you've been very helpful. Still seems mental to me that an amount that substantial can be withheld for that long but I suppose it's all there to be seen in the small print.

Patrick Wheelock

10 working days for a pending Visa Debit transaction to fall off.