Debit Cards question

Earlier we were having a discussion about using debit cards for things like hotels and rented cars. As luck (bad) would have it I had to rent a car from Enterprise and stay in a hotel. Enterprise pulled out $300 “deposit” for a $26 rental and the hotel took out $100 in addition to the price of the hotel room.

This is ridiculous and I wish the government would look into this one. I’m using a card that they can determine immediately whether I can pay it or not whereas someone with a credit card (especially American Express) may never be able to pay the bill.

I just read an article about this very thing today in a Reader’s Digest issue. It is probably at your local library (recent issue) if you want to read it. Article is entitled Debit Card Dirty Tricks or something close to that.

Look what Dave Ramsey says:

It mentions that the HOLD companies, gas stations, car rental places, hotels, etc. put on your debit card can cause you to bounce checks, incur very expensive fees and the way that Debit cards are set up vs. Credit cards, you are SOL re: fees and charges unles the bank / credit unions wants to reverse the fees charged.

You are correct on this matter. I went To Chicago for training and my company put me up in a hotel. My boss used his corporate card to pay for my hotel room and for my train ride but when I checked into the hotel they needed my personal credit card/debit card to put a hold on it for any incidentals. They did make me aware of what they were doing but I was not aware they would do this until I checked in. Luckily they released the hold the day I check out.

I was told it may take 5-7 days for the money to go back into my account. I blame the hotel on this and will be writing a letter soon.

Hotels, gas stations, etc. are well known for placing a block or HOLD on your amount debited. They are notorious for doing it. You get shafted when they do it and you have other things that you need to buy.

I am working on figuring out how much cash I need from one pay to the next, so I can visit our local bank/credit union and get it out on payday and eliminate the need for using the DEBIT card. We got socked with several fees and it really ate up a lot of money really, really fast.

I was reading in the same publication that you should use a credit card (not a debit) when you are traveling, renting a car, booking a hotel because of this HOLD thing going on. Then, use CASH for your meals and gas, to avoid dings to your account.

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