How to Minimize the Hazards of Credit Card Blocking

Credit card blocking is one of the many ways in which merchants and retailers have learned to protect their own interests from consumers who never intend to pay for products and services. When you use your credit card to rent a car or a hotel room, for example, the company blocks the estimated total of your bill until you come in to settle the account. This is to ensure that you don't stiff them later when you have to pay up, and the reason why credit cards are required for most of these rentals.

Unfortunately, credit card blocking can put a crimp in your spending and result in declines when you try to use the card at other stores. Since the money for the purchase or rental has been blocked from further use, the amount of money available on your credit card decreases. If you aren't aware of how this works, you can easily make a mistake.

Bring Two Credit Cards

Since credit card blocking is most common while traveling, make sure you have at least two credit cards in your wallet. One should be used for car rentals and hotels where purchases are expected to be blocked, and the other should be used for restaurants and gift shops and anything else you might want to buy.

When you use credit cards in this way, you can be sure that your card won't be declined from blocking, and you can keep track of the balance available on each card. Furthermore, you won't run the risk of exceeding your credit limit and incurring additional fees.

Pay with Cash

Although you have to use a credit card to rent hotel rooms and cars, you can settle the final bill in cash or with your debit card. Using this approach, you can avoid "double charges" on the card that might wipe out your credit limit until the original blocked amount clears.

Ask About Limits

Before you hand over your credit card to be swiped, ask the sales clerk how long credit card blocking lasts. The time limits differ depending on where you are, and can affect how you use the card. For example, some merchants will lift the block when you settle the final amount, giving the first charge time to clear before the second one appears on your card.