Float?
Nov 18, 2011 | 2:00 pm
#1
Original Poster
Join Date: Feb 2001
Location: Santa Cruz CA USA
Posts: 1,643
Float?
I charged gas recently, once at Costco, once at another vendor, and noticed from both a $100 temporary authorization which took three days to revert to the actual price (around $30). My credit limit was reduced by the $100 until the actual charge posted.
Did the gas vendor have the use of that $100 for those several days? Or was it in limbo somewhere, digits in the cloud? I remember when the float was meaningful today the question is only curiosity.
(The card if the FIA Card Services Fidelity American Express cash back - would this vary from bank to bank?)
Sylvia
Did the gas vendor have the use of that $100 for those several days? Or was it in limbo somewhere, digits in the cloud? I remember when the float was meaningful today the question is only curiosity.
(The card if the FIA Card Services Fidelity American Express cash back - would this vary from bank to bank?)
Sylvia
Nov 18, 2011 | 5:01 pm
#2
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
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Posts: 51,823
No, the same happens when you pay at a restaurant or check into a hotel. The merchant reserves an amount of credit adequate to cover the maximum likely charge. If you travel extensively this can tie up a substantial portion of your credit line. This is one of the original points of difference between charge cards (e.g. American Express and Diners Club) and bank cards (e.g. Master Charge and BankAmericard), but these days MasterCard World and VISA Signature cards have the same "no present spending limit" feature which renders the hold harmless to most people.