Credit Card Blocking

Credit cardholders often provide in advance their credit card number to a merchant, company or business, for future transaction, which may or may not occur. For example: When checking into a hotel or renting a car, the receptionists may ask for a credit number to placed on file, and then to be applied to the final bill. The merchant could contact the credit card company, and provide an estimate amount of the total bill. If permissible by the credit card company, the merchant has the estimate amount "blocked", even though no charge has been applied to the card (debit or credit), and that amount may not be charged, if the transactions, does not proceed. Also, some restaurants use the service of "blocking," a credit card, when a large number attend a party or dinner event. The purpose of "blocking" ensures the merchant will get paid if the customer or client relinquishes, from paying the final bill or ensures the merchant will get paid, preventing the cardholder from exceeding the credit limit, before checking out of a hotel, returning a rental car or other similar type of transaction. Unfortunately, credit cardholder may encounter a problem, when making a future purchase, with that card. Unknowingly, the cardholder may have reached their credit limit on the card, since an amount on the card was 'blocked," for possible future credit card transaction. Some credit card companies will allow the credit cardholder to exceed their limit, but on the next credit card statement, an additional fee or punitive charge would be included.