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Credit Card in Credit
Comments
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If you can't easily cover an £800 to £1500 deposit for car hire, which would be refunded if you don't damage the car, thus leaving you in credit even longer, consider buying the extra collision damage waiver policy instead
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One may need to make several car hire deposits in a single holiday so the total can easily add up to several thousand pounds. As a pensioner that is well beyond my credit card limits.
It seems a bit odd that they should want me to use my credit card but not for its most useful purpose.
I also thought this was a money saving site. Someone recommending car hire insurance from a car hire provider seems to be a bit out-of-place.
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The thing is that offering credit and taking deposits are two different things, regulated by different bodies with different rules. Thus, having a positve balance on a credit card (that is, taking a deposit) is outside the norm for offering credit. Pragmatically, nobody is going to raise an eyebrow for a temporary positive balance caused by a refund just after a monthly payment (say). Deliberately taking (and holding) a deposit is another matter, though, which why it is a breach of the credit card T&Cs. The provider may choose not to take action, but could end up in hot water with the regulatory body, particularly for large amounts or frequent occurrences.
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Each provisional authorisation is cancelled when you off hire the car
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But that may take time and some people actually take deposits.
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Never had any issues with the occasional "accidental" 😉 overpayment, when doing a bal transfer for example but putting your card into credit for extended periods sounds like a recipe for getting flagged for potential money laundering tbh.
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Which are against the T/C of many cards & could see the facility withdrawn.
In such cases ring provider, explain situation & they may give a temp increase of limit.
Life in the slow lane0 -
Won't be money laundering, just the credit card is not a saving/current account and they don't want it in credit, so they say so, ignoring that just breaches their terms and they can cancel the card if they wish
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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It can be part of money laundering.👍
Life in the slow lane1 -
Money laundering is run through fake businesses, crypto etc, not putting a credit card in credit which will usually just bounce the money back to the sender account and might allow a few hundred in a one off transaction which is traceable, not the tens of thousands in untraceable methods they need to use.
👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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