Pre authorisation on credit cards

[SALAD MUNCHER]

Why do HAL require the 'pre authroisation' of credit cards? We have sailed on Cunard and other lines and have never had to go through this procedure before.

It is very difficult for those societies who do not live in a 'credit card culture' and maybe only have one or two cards with limited credit. Here in UK some people do use credit cards for most things but I think on the whole we are more a 'debit card' nation and as such the majority of Brits tend to use credit cards for larger purchases.

We are travelling to Australia to join Volandam for 16 days for onward travel to Singapore. We will be in Australia a few days before and Singapore a few days after the trip, where we hope also to use our credit card for hotel meals, trips etc.

We have already pre paid HAL for all six of our ship excursions, (£1100 +)we have pre paid for our beverages ($750 worth) so I cannot believe we will spend a further $120 on board each day! (we don't do the casino at all). Each of these advance payments for trips and beverages has already cost us a further 2.5% foreign transaction fee as our credit cards are billed in £'s not US$'s.

Sure, it is only a pre authorisation not a charge, BUT if your credit limit is small it can take out a big chunk of your spending power, preventing you using the card fully until HAL actually takes away the authorisation. I have also heard some credit card companies can take 30 days for this to be removed! Therefore post cruise payments could be negatively effected.

I believe this pre authorisation system causes more problems for non US passengers than it solves for HAL, and it has certainly made us reluctant to ever use HAL again. OK you may say it is to prevent someone walking off ship without paying...yet the rest of us have to suffer for their crime. Innocent until proven guilty.......obvioulsy not on HAL!!

[aussiedisneyfan]

A lot of cruise lines/companies actually do it, they just aren't as up front about it as HAL. I do realise it causes problems as we have 3 people in our cabin and have for sailed 30 days at once. Makes for a big hold although they do reduce the calculation for longer cruises.

 

If it may cause you problems, try asking at the front desk for them to reduce your amount and show them everything you have prepurchased. On one of our cruises we used a domestic credit card as the registered card for the hold but on the last day switched it to our travelling credit card. That way the hold was on a card we had no intention of using. I do realise that some may not have the luxury of doing that.

[KirkNC]

Cunard is the exception, most lines do the same thing. It is to protect the company from a passenger running up charges on their account and then not being able to pay. You can also deposit cash in lieu of the credit card. I believe they use $60/day/passenger for most cruises.

[Esri]

I've never cruised with any company except HAL, but I know there are other cruise lines (non-Carnival included) that do require pre-authorization. You do know you can make a cash deposit and get the remaining funds refunded at the end of the cruise, right?

 

If you are a debit card user simply make a cash withdrawal from your account prior to the cruise, pay the deposit, get your remaining funds back at the end and put it back in the bank.

 

That would solve the problem of eating up your entire credit line with a hold.

[Krazy Kruizers]

Hotels do this as well.

A number of years ago we had a young couple on their honeymoon. They were not aware of this hold. Halfway through the cruise they went to purchase something in a port and were refused. When they got back to the ship, they discovered in talking with the concierge that indeed there had been a hold put onto their credit card. And upon futher checking they discovered that the hotel they would be staying in for a week after the cruise had also put a hold on their card -- at that time it was $50 per day. They kept pleading with the concierges and purser to have the hold removed -- didn't happen. When we got to the next port, both were on phones on the dock making calls home. By then it was our last port before we headed back to Ft Lauderdale. Their spending days were over.

[OVgirl]

I guess it's a situation of a few spoiling for everyone. Not much we can do except read the cruise contracts and be prepared for the hold.

 

Not sure if this would help, but can one call the credit card company and ask for a higher credit limit for the duration of the cruise/hold? Just an idea.

[boards]

I don't understand why there is a concern about Hal making sure you have the credit limit to spend, in our case $1200. I would not want to go anywhere and try using a credit card that I did have the credit available to enjoy my vacation. All Hal is doing is just making sure in advance you have the credit available to pay your bill. Sounds good to me.

[hal lover]

I don't understand why there is a concern about Hal making sure you have the credit limit to spend, in our case $1200. I would not want to go anywhere and try using a credit card that I did have the credit available to enjoy my vacation. All Hal is doing is just making sure in advance you have the credit available to pay your bill. Sounds good to me.

 

I totally agree with you!

[OVgirl]

I think the OP was just stating that they had holds for 2 people put on each of their credit cards, even though there were only 2 people sailing. So, looks like HAL put a hold for 4 passengers.

 

The concern about the amount of the hold that HAL and other cruiselines charge was just a side discussion/question.

[cruz chic]

I don't understand why there is a concern about Hal making sure you have the credit limit to spend, in our case $1200. I would not want to go anywhere and try using a credit card that I did have the credit available to enjoy my vacation. All Hal is doing is just making sure in advance you have the credit available to pay your bill. Sounds good to me.

Sounds good to me too. If putting $60 a day on my CC prevents deadbeats from walking off the ship and not paying their bills I'm totally fine with it. I never spend that much a day. Maybe the OP would be better off sailing with a line they feel doesn't treat them this way.

[cruz chic]

Hotels do this as well.

 

A number of years ago we had a young couple on their honeymoon. They were not aware of this hold. Halfway through the cruise they went to purchase something in a port and were refused. When they got back to the ship, they discovered in talking with the concierge that indeed there had been a hold put onto their credit card. And upon futher checking they discovered that the hotel they would be staying in for a week after the cruise had also put a hold on their card -- at that time it was $50 per day. They kept pleading with the concierges and purser to have the hold removed -- didn't happen. When we got to the next port, both were on phones on the dock making calls home. By then it was our last port before we headed back to Ft Lauderdale. Their spending days were over.

Yet they decided to go with an expensive room on the ship. I don't have any sympathy for them.

[Boytjie]

Innocent until proven guilty.......obvioulsy not on HAL!!

 

And not on Princess, NCL, rental car companies, hotels etc. They all put a hold. I can't remember if Cunard put a hold; according to what others have posted Cunard doesn't. Maybe they do but they don't tell you, just like the gas station doesn't tell you that they do.

 

Your alternative is to put down a cash amount. I believe it is supposed to be for the same amount as the hold but people have mentioned that they negotiated a lesser amount. If you spend more than what you have put down in cash, they will request that you provide additional cash before charging to your shipboard account will be reactivated.. At the end of the cruise you will get a refund of the balance.

[kazu]

I don't understand why there is a concern about Hal making sure you have the credit limit to spend, in our case $1200. I would not want to go anywhere and try using a credit card that I did have the credit available to enjoy my vacation. All Hal is doing is just making sure in advance you have the credit available to pay your bill. Sounds good to me.

 

Many, many companies do this (if not all) -people are just not aware - there is no major impact until you are spending several days in a hotel or a week(s) on a cruise ship.

 

With the right credit limit there is no impact at all.:)

 

In my prior working day, I highly recommended that anyone with a low limit request an increase (even on a temporary basis) to accomodate the holds that could be in place on any vacation. Many people are unaware in this regard and can be caught off guard if they have a very low limit on their cards:eek:

[Hawaiidan]

Many, many companies do this (if not all) -people are just not aware - there is no major impact until you are spending several days in a hotel or a week(s) on a cruise ship.

 

With the right credit limit there is no impact at all.:)

 

In my prior working day, I highly recommended that anyone with a low limit request an increase (even on a temporary basis) to accomodate the holds that could be in place on any vacation. Many people are unaware in this regard and can be caught off guard if they have a very low limit on their cards:eek:

 

The world is moving to a credit card economy. The debit card was developed by the banks to increase their profit by using you money to make them money. A credit card, however, allows you to get an interest free loan for up to 60 days and use the banks money !

 

As an example, I charged $7000 october 15 for a cruise. That bill will come due and payable December 15 !!! Interest free!

 

UK banks have sold their customers a bill- of goods for their benifit!!!!,,,( not yours)

 

All hotels, rental cars, cruises put a hold on your card... only a few tell you.

 

I stayed this week at a Marriott for 2 nights...on points( free) and they still put a $100 a day hold on my card. Hertz told me they put a $200 hold for a 3 day prepaid rental too on LA. They all do it.

 

So get and maintain good credit and a good credit card. Using it will increase your credit limit and you can after a few years get 15 to 20 K limits if youwant. Using a debt card earns you no credit, zero, raiting at all.

Just pay off the credit card at the end of the month with auto pay ; just like you do with a debt card.!!!

[Typhoon1]

The cruise lines want to be able to collect their money.

 

They're not about to hand you a blank check.

[serendipity1499]

Sounds good to me too. If putting $60 a day on my CC prevents deadbeats from walking off the ship and not paying their bills I'm totally fine with it. I never spend that much a day. Maybe the OP would be better off sailing with a line they feel doesn't treat them this way.

 

Sans MS]

To the OP & some of the posters who are questioning the rationale behind the hold: Several years ago Bruce Muzz, a Cruise Line Officer, explained why the $60 per day hold originated.. Perhaps you & others on this board might want to read the explanation he gave to another poster: Bruce Muzz Re Credit Card Holds: See Post No. 119 (March 2010)

http://boards.cruisecritic.com/showthread.php?t=936846&page=6

This is an excerpt from the Hal WEB site I pulled up in 2009:

 

Quote Your card will be pre-authorized for US$60 per person for each day for cruises up to 25days and US$30 per person per day for cruises longer than 25 days. At the end of your cruise, you will receive a final statement, and your card will be charged only for the actual amount of your purchases. Please inform your credit or debit card issuer in advance that your card will be used on a Holland America Line ship. This will help prevent delays in obtaining pre-authorization on board. Some banks may keep the pre-authorization in place for up to 30 days. Unquote

In our case when we board for our 68 day cruise our hold should be $60 per day for the two of us or a total of $4,080 instead of $8,160..If I'm not mistaken HAL might even re-calculate the Hold for us mid-cruise..The $8,000 plus would be no problem, as we have a large enough credit limit, & pay our bills in full each month..But imagine it could be difficult for those who do not have a large credit limit..

 

When we shop in foreign ports, we do not use the same card which we give HAL, since the card issuer charges a 2%-3% currency converstion fee..We use a Capitalone card which does not have this fee..

Cheers....:)Betty

[cruz chic]

Sans MS]

 

 

 

In our case when we board for our 68 day cruise our hold should be $60 per day for the two of us or a total of $4,080 instead of $8,160..If I'm not mistaken HAL might even re-calculate the Hold for us mid-cruise..The $8,000 plus would be no problem, as we have a large enough credit limit, & pay our bills in full each month..But imagine it could be difficult for those who do not have a large credit limit..

 

Cheers....:)Betty

With all due respect, if a person can't "afford" the hold for a 68 day cruise they probably shouldn't be taking one.

[Taxguy77]

Yet they decided to go with an expensive room on the ship. I don't have any sympathy for them.

 

So they should honeymoon in a small inside?:confused:

Boy will they enjoy the hotel when they get off the ship! ;)

[RuthC]

So they should honeymoon in a small inside?:confused:

Is there something the matter with insides? Even for a honeymoon? Especially if that's what you can afford???

[Sopwith]

I think many are missing the point here. The fact is that HAL and most other businesses are treating 100% of their (supposedly valued) customers like thieves when less than 0.1 % of them actually are. I am astonished at the number of people posting above who apparently think this is an acceptable practice. I am not a thief and I resent being treated like one, so I often push back on this type of treatment. I recognize that it probably won't change anything in the short run, but the point needs to be made. If we don't push back it will only get worse in the futre.

 

I have had my card blocked while travelling several times by the card issuer because they "suspect" a perfectly legitimate transaction was fraudulent. Then they get huffy when I go ballistic on them for leaving me stranded with an inop card. I don't react very well to that type of treatment. Sorry to the apologists, but fraud perpetrated by someone else is not my problem.

[cruz chic]

Is there something the matter with insides? Even for a honeymoon? Especially if that's what you can afford???

No, it's better to go the top of the line and then complain about it:rolleyes:. Why live within your means?

[RuthC]

No, it's better to go the top of the line and then complain about it:rolleyes:. Why live within your means?

Oh! Now I get it! Instant gratification is preferable to deferred gratification.

What a fool I've been all my life. :eek:

[RuthC]

I have had my card blocked while travelling several times by the card issuer because they "suspect" a perfectly legitimate transaction was fraudulent. Then they get huffy when I go ballistic on them for leaving me stranded with an inop card. I don't react very well to that type of treatment. Sorry to the apologists, but fraud perpetrated by someone else is not my problem.

When your card is blocked, and you "go ballistic" due to others' fraud, then it has become your problem.

Personally, I don't want to pay more than necessary to make up for the fraud of others. If that makes me an "apologist", then I shall wear the mantle proudly.

[Esri]

Originally Posted by Neil in Vancouver

I have had my card blocked while travelling several times by the card issuer because they "suspect" a perfectly legitimate transaction was fraudulent. Then they get huffy when I go ballistic on them for leaving me stranded with an inop card. I don't react very well to that type of treatment. Sorry to the apologists, but fraud perpetrated by someone else is not my problem.

 

Actually, fraud perpetuated by someone else becomes everyone's problem when the line has to raise prices to make up for lost revenue and debt collection costs.

 

It isn't a secret that HAL places a hold on your card. I do not know what materials are presented to people who book somewhere other than directly with HAL and who do not visit the HAL web site to read the FAQs and other materials, but it is clear as day in the FAQ that each passenger can expect $60 a day ($30 on cruises over 28 days) to be placed on hold.

[dakrewser]

I have had my card blocked while travelling several times by the card issuer because they "suspect" a perfectly legitimate transaction was fraudulent. Then they get huffy when I go ballistic on them for leaving me stranded with an inop card. I don't react very well to that type of treatment. Sorry to the apologists, but fraud perpetrated by someone else is not my problem.

 

We've had transactions declined (and cards blocked) also - but a quick chat with the credit card issuer (Amex is best) took care of the problem. Since my cards have been skimmed and scammed numerous times (twice in 3 months with one) I appreciate the card company being vigilant.

 

As to the holds placed by what's loosely termed the "hospitality industry," I'd rather that than an increase in price for everyone to cover fraud losses.