Authorisations against a Credit Card - What can I do about this?

nctmum

Simon7685 wrote: »

I should have £50 available credit to us, when in fact because of this carry on I only had £36.50 available. Now if I had just gone ahead and spent say £40 it would have put me over limit, incurred a charge and affected my credit rating.

I don't think this is how it works - if you tried to spend £40, Cap One could decide whether to let it through or not based on your pending auth amount, but you wouldnt incur an overlimit fee unless your balance actually went over your limit and your credit file wouldnt show as overlimit either. So the worst that can happen is that they decline the transaction.

sharpy2010

Yes, the worst that can happen is that they will decline the transaction. However, I think I'm the only one who agrees with the OP on this one in that if the company is taking the money by direct debit, then there is NO need for them to take a pre-auth from the credit card. IF the direct debit bounces, then fine, take the money from the credit card. Otherwise there is NO need to do this. I'd swap mobile companies, personally.

chattychappy

sharpy2010 wrote: »

However, I think I'm the only one who agrees with the OP on this one

I agree too. It seems rather high-handed. I suppose it's not an unauthorised transaction until it becomes a charge, but that's hardly the point.

DominicJ_2

I can see their point as well.
You receive the credit on the phone before you the funds clear via DD.
If the DD failed, and you cancelled your card, they are out of pocket.

The bit that suprises me is the CC company doesnt mind there spurious transactions.