Warning re regular visa payments

Plumjam

I have recently set up 6 monthly visa payments from my debit card which is an 'easy pay' option for a holiday rather than paying a large deposit and the balance nearer the time. This was my way of ensuring that I 'save' for the holiday rather than just hoping that I'd put the money aside. I noticed the other day that my available bank balance was showing quite a lot less than my actual balance. I worked it out to be the amount that I will pay tomorrow to the holiday company. I queried it with the bank and was told that because it's a visa payment, that the company concerned can reserve the money in advance (in this case about a week) even though they won't actually take it until the agreed date (1st of the month). Fortunately, I have enough money in the account so it doesn't really matter, but had I not had enough, then this would have taken me, unwittingly, into my overdraft.
I didn't realise that companies could do this.

Angry_Bear

Yes, something similar was a nasty shock to me on holiday.
I took a pre-paid mastercard thingy and used it as "security" in the hotel (so you can order room service and stuff). They then reserved about $500 which I couldn't access my whole holiday - so I had to take money out from my current account with extortionate fees anyway - and that was after the nasty shock of having my travel card rejected!

Oh, and it took the hotel almost 3 weeks before they released the funds after I got home. Not a mistake I'll be making again!