pre-authorisation?

markp37

a couple of days ago i placed an order for a lens i am renting for my upcoming holiday . when you place the order the company does a pre-authorisation on your debit card for the amount but doesnt charge it . as soon as the order was complete , my bank adjusted my balance by the according amount . am i right in thinking that this means that i can just forget about it and it will automaticly be paid when the lens is posted because the bank has held the money back for it , and therefore i no longer need to budget for 60 quid coming out of my account ?

Scarpacci

That wouldn't be a good idea as authorisations can drop off before the final charge is made. This doesn't affect the purchase, but it could lead you to think you have £60 more than you actually do.

Until the final charge is debited, you will need to keep in mind this £60.

Gromitt

Only for as long as the authorisation lasts for. If you account balance increases by £60 due to the authorisation lapsing, you need to remember you can't spend this.

So in a word, no.

YorkshireBoy

You should assume the money has left your account, never to return, the moment you enter your PIN/enter your card details/sign a cheque.

markp37

Scarpacci wrote: »

That wouldn't be a good idea as authorisations can drop off before the final charge is made. This doesn't affect the purchase, but it could lead you to think you have £60 more than you actually do.

Until the final charge is debited, you will need to keep in mind this £60.

obviously if 60 quid pops up i know thats where it came from , i just meant that to all intents and purposes its basicly paid for

Plxply

markp37 wrote: »

obviously if 60 quid pops up i know thats where it came from , i just meant that to all intents and purposes its basicly paid for

The problem is that the authorisation can fall off the account but the retailer can still charge your card up to six months later. People on MSE are often used to hearing people complain about this fact so it's important to keep in mind the money you've spent.

molerat

They could also take the £60 again before this £60 pre-auth drops off.

chattychappy

molerat wrote: »

They could also take the £60 again before this £60 pre-auth drops off.

I've had this with hotels. Whilst paying the bill at checkout should cancel the original authorisation, it doesn't always work that way. Sometimes its a couple of weeks before the pre-authorisation drops off.