Q. My husband and I recently paid for a restaurant dinner with a debit card. The charge that appeared the next day on our online account was 5 percent higher than what we'd paid. The bank took out the extra 5 percent "temporarily" in case my husband "wanted to increase the tip," a representative explained. That got us wondering about this practice.
— Rhonda Fels, Everett
A. This is called "blocking," a little-publicized practice that's legal but causing increasing problems for consumers.
Here's how it works: When you use a debit or credit card to pay for gas, check into a hotel or rent a car, the clerk contacts the company that issued your card to give an estimated total.
A "hold" is placed on that amount — and sometimes more — to cover incidental expenses at the hotel, rental-car damage or the cost of filling up.
Gas stations "presume everyone is driving an SUV" and will often block $50 to $75 if you pay with a debit card, said Edmund Mierzwinski with U.S. PIRG, a coalition of state public-interest research groups. Restaurants and other businesses do this, too. It protects the business by ensuring you don't overdraw your bank account before the merchant is paid.
Here's the problem for consumers: Some businesses take several days to remove the block, Mierzwinski said. You could unwittingly bounce checks and incur overdraft fees or max out your card because it appears you have insufficient funds in your account.
Banks allow this practice — and argue that it's adequately disclosed to consumers — but it's the business (or its account managers) that is responsible for placing the hold.
Tips from the Federal Trade Commission:
• When you check into a hotel or rent a car, ask how much will be blocked and for how long.
• Consider getting an overdraft line of credit from your debit-card issuer.
Jolayne Houtz, Seattle Times reporter
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