You can put a hold on a debit card too without pulling the entire amount (they run an authorisation and release it immediately) I've used it to rent cars and hotel rooms, they do a check but the amount isn't 'blocked' off. In effect your statement looks just like a credit card.. There's absolutely no difference except with a credit card it's a borrowed balance.
I'm not too aware of how cards are in the US but generally in Europe & Australia (afaik) they're this way. Do cheque cards have mastercard/visa on them in the US (What about maestro/electron)?
US merchants don't do this. Most of the ones who take a deposit (hotels, car rental) have signs at the counter warning that they may put a substantial hold on your cash if you use a debit card, which won't be released for quite a while.
You are right -- if the card is bank-issued, then they can simply place a hold and release it without money flowing. With Privacy, it would seem they will need to actually pull the cash to be able to ensure that its there when the final charge comes through. Curious to see how this plays out.
>US merchants don't do this. Most of the ones who take a deposit (hotels, car rental) have signs at the counter warning that they may put a substantial hold on your cash if you use a debit card, which won't be released for quite a while.
My company used to send us on work related trips which were paid for in advance, but relied on us to provide our own cards at the hotels for incidentals. After a few (presumably less financially stable) employees used debit cards with low balances to check into hotels (effectively leaving them with no money during their stay), this policy changed so now the company credit card is used for hotel check-ins.
I personally hate the new policy because I have good credit and like getting room service, and for some reason I find it kind of emasculating that I'm not allowed to use my own card.
I'm not too aware of how cards are in the US but generally in Europe & Australia (afaik) they're this way. Do cheque cards have mastercard/visa on them in the US (What about maestro/electron)?