Debit card/ What if you can't pay bill?

[RedLightVegas]

In regards to debit card usage-

I called NCL yesterday and when you set an account up with a debit card, (which is what we have to use on our upcoming cruise because we have no other choice but cash) they pre-authorize your card for $300 but don't actually charge it until the last morning of the cruise. What happens if you go over that $300? Do they pre-authorize another $300 when you've gone over the first $300?

 

Reason I ask is because I have seen people on the last day of cruises freaking out at the purser's desk because there's "no way they could've spent that much" and I'm wondering if they were freaking out because they couldn't pay the bill? If you go over the pre-authorization limit (and lets say they don't pre-authorize again) and they try to charge the card at the end of the cruise and it doesn't go through what happens?

 

Me personally, I'm not worried because I always keep track of my spending (I'm a fraud accountant, numbers just sit well with me) but I was wondering if the non-pay could be an issue for others or the cruise line.

[youngestof9]

I'm not sure if the pre authorizations work the same with credit cards but when I got home from my recent epic sailing, the pending charges on my Amex were random numbers charged daily so there were authorizations for about 9 different amounts totaling about $800 plus the real charge of $1500ish that I actually spent. The pending charges slowly dropped off and weren't completely off my account for about a week. Which proves that your money on a debit card may be held up even if what you actually spent is charged right away. Hope that makes sense.

[DMLyons]

What happens if you go over that $300? Do they pre-authorize another $300 when you've gone over the first $300?

 

Reason I ask is because I have seen people on the last day of cruises freaking out at the purser's desk because there's "no way they could've spent that much" and I'm wondering if they were freaking out because they couldn't pay the bill? If you go over the pre-authorization limit (and lets say they don't pre-authorize again) and they try to charge the card at the end of the cruise and it doesn't go through what happens?

 

 

Having not encountered it before, I'm guessing, but it makes sense that they would do the same thing other venues do and charge another block of money. I'm also basing this on the fact that they will turn off spending on your card if you placed cash down but get to your limit on the cash. They want to make sure you CAN pay up front. Remember, the hold on the cash will make sure the money is there. If it's refused at that point, they will simply turn off your ability to charge at all. There IS time for you to make a few charges before they turn off the card and demand another form of payment, but not a full cruise's worth of charging.

 

Yes, people will always end up there screaming about how there's no way they could have... Sometimes they're right. There was a mix-up in how charges were allocated or something. Sometimes they're right but still responsible. Their children spent more than they were allowed to...or someone stole one of their cards and charged up a bunch of stuff before it was caught and turned off. Sometimes they are wrong...or are trying fraudulently to prove they aren't responsible for charges they did approve. This would include them forgetting about a charge, them not knowing there was a charge included for something, or even (as I said) attempted fraud. Like you, the smart person checks the account daily and hits discrepancies as they occur.

 

Just because they are screaming doesn't mean the money isn't technically on the card and held for future charges. Maybe they had money on the debit card intended to pay for their hotel room before flying home, for the cab from the airport to home, meals while traveling, the babysitter at home, or even bills at home paid out of the same account that are due after the cruise. Shrug. And let's face it...some people just scream about every penny they spend, even if they chose to spend it.

 

DML

also with degrees in accounting...grin

[SissasMomE]

Sometimes they're right but still responsible. Their children spent more than they were allowed to...or someone stole one of their cards and charged up a bunch of stuff before it was caught and turned off.

 

You definitely are not liable for someone stealing your card and running up charges. That is the whole point of signing the receipts when you purchase something.

[smeyer418]

Children spending more than they are allowed to means you still have to pay as you are responsible for them. If you claim someone "stole" you card, they will pull the receipts and look and if it looks like yours and you still say its not they may pull some video tapes. What happens if you are over your limit and have no money? Is one of three things. They will ask for another card with more on it. They will ask you to sign a promissory note and pay back with interest over a period. If you refuse to sign they will call the police and have you arrested for theft of service. There was report that someone had bought a diamond ring and their credit card limit wouldn't cover and they came up with some story that it wasn't them. They refused to give another credit card or sign a note. The police were called and they were arrested.

[DMLyons]

You definitely are not liable for someone stealing your card and running up charges. That is the whole point of signing the receipts when you purchase something.

 

You don't sign receipts for everything. In specific, on another thread, someone talked about being stuck for charges when another teen stole her son's card and used it in the game room. So...don't think you're completely safe there.

 

DML

[Zimomiller]

On our behind the scenes ship tour on our cruise on the Dawn we discovered a laundry and dish room full of people that had not been able to pay their onboard charges from previous cruises....

[sparks1093]

In regards to debit card usage-

I called NCL yesterday and when you set an account up with a debit card, (which is what we have to use on our upcoming cruise because we have no other choice but cash) they pre-authorize your card for $300 but don't actually charge it until the last morning of the cruise. What happens if you go over that $300? Do they pre-authorize another $300 when you've gone over the first $300?

 

Reason I ask is because I have seen people on the last day of cruises freaking out at the purser's desk because there's "no way they could've spent that much" and I'm wondering if they were freaking out because they couldn't pay the bill? If you go over the pre-authorization limit (and lets say they don't pre-authorize again) and they try to charge the card at the end of the cruise and it doesn't go through what happens?

 

Me personally, I'm not worried because I always keep track of my spending (I'm a fraud accountant, numbers just sit well with me) but I was wondering if the non-pay could be an issue for others or the cruise line.

 

It is my understanding that they will do another pre-auth. When I departed my last cruise I had a hold on my account equal to my onboard account balance as of the day before debarkation. Within 24 hours the charge with our total was put through and the hold was released. Sometimes though the hold doesn't get released for some time and that can cause people problems. As for what happens if you don't have the money smeyer answered that quite well.

[beachmonkey]

We used our debit card on our first cruise. We did not have trouble paying the bill, but it took 5+ days AFTER the cruise for the hold to be removed. We were not banking (I know that was a bad pun) on that little glitch.

[RetiredArmyCruiser]

You are severely limited with a debit card in fraud reporting and liability. Since most people have their primary checking account accessed with their debit card, pre-authorizations or theft can be a HUGE deal since the money is gone from your household checking account until the fraud is cleared up. http://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards

 

If it were me, and I only had a debit card and no credit card, I'd use a cash deposit. If you get close to the deposit amount, they'll let you know and you can boost it as needed. I would be leery to use my debit card for my ship purchases. I would hate for my account to be in limbo until it was cleared up. It's kind of hard to pay your mortgage and car payment when your money is tied up in pre-authorizations and such from your cruise. It can take your bank up to three weeks to clear out debit card pre-authorizations, even if NCL releases is quickly. Every bank has different policies regarding this.

[RedLightVegas]

Where I bank, they don't take the pre-authorizations into account for your "available balance."

Like if I had $500 in an account, they pre-auth $300, my available balance would still be $500 until the pre-auth turned into a charge, then I'd have a balance to $200 left in my account.

Like I said, I'm not worried about myself, I got the money to cover it, I was just wondering about the people who wouldn't have the money to cover it at the end of the cruise. I got it now though.

 

I figured when I used my debit card for this cruise, they'd pre-auth $300, when I reached that limit in my onboard account, they'd pre-auth another $300, then if I reached that, go another $300, then on the day of debarkation just charge $700-$800 (or whatever I spent) and take the pre-auth's off.

[SteveH2508]

I think NCL advises against using a debit card because of the holds that are put on them. Others have already covered using cash instead - seems like the best policy to me if you do not have/want to use a credit card.

[rbrugler]

On our cruise two years ago on the Dawn we used a debit card for our account. We went to a specialty restaurant on embarkation night, and when I gave them my card, it was refused. I went to the desk and learned that it was declined by the bank. I gave them $400, and later in the week gave them another $200. I phoned my bank, and learned that the problem was that they did not know we were in Miami. I left things the way they were, and am glad I did. No holds to worry about.

[ColinIllinois]

You can also use travelers checks according to the NCL website.

[sparks1093]

On our cruise two years ago on the Dawn we used a debit card for our account. We went to a specialty restaurant on embarkation night, and when I gave them my card, it was refused. I went to the desk and learned that it was declined by the bank. I gave them $400, and later in the week gave them another $200. I phoned my bank, and learned that the problem was that they did not know we were in Miami. I left things the way they were, and am glad I did. No holds to worry about.

 

That brings up a good point- we always call our bank and let them know when and where we will be traveling in order to prevent those unpleasant surprises.

[scar4711]

I don't have a credit card with that much room on it, so I do have to use my debit card.

 

but I always make sure there's at least 1k on it pre-cruise. The initial auth of 300 will drop in 3 business days, so about half way through the cruise if its a 7 day leaving on Sunday. Also, they are putting in authorizations for each night of charges.. but its still random on what charges get authed. I have not figured that part out yet.. I know I had $100 in charges on a day, but there would only be a new auth for about $50.

 

It's something I have come to live with, and well.. it's just how I roll :)

[DMLyons]

You are severely limited with a debit card in fraud reporting and liability. Since most people have their primary checking account accessed with their debit card, pre-authorizations or theft can be a HUGE deal since the money is gone from your household checking account until the fraud is cleared up.

 

Having had someone heist my numbers before, I can tell you it takes up to 10 days for the charges to be returned to the account in the case of fraud.

 

One thing I HIGHLY suggest to someone who doesn't want to open the main bank account to the possibility is to open a second bank account with JUST the money you want to use on the cruise in it. Several people I know are already well-positioned for their travel, because they have PayPal accounts (with the PayPal debit card) which are further hooked to a secondary bank account, where they bankroll money for travel and keep it separate from the primary bank account. Whatever you give the ship, make sure it can't drain necessary funds from your primary bill-paying account, if you have any concerns at all about it.

 

DML

[DMLyons]

Where I bank, they don't take the pre-authorizations into account for your "available balance."

Like if I had $500 in an account, they pre-auth $300, my available balance would still be $500 until the pre-auth turned into a charge, then I'd have a balance to $200 left in my account.

 

Your bank is different than both of mine, then. They show separate balance and available balance, and the available balance is after holds. Since I travel a lot, that lets me know what they are doing in a glance.

 

DML

[DMLyons]

I phoned my bank, and learned that the problem was that they did not know we were in Miami. I left things the way they were, and am glad I did. No holds to worry about.

 

Nodding. Common problem. Anytime you're going to be outside your general area, it's best to let the bank know. Otherwise, the fraud prevention dept thinks the card has been heisted, and they shut it off. A 5-minute phone call can fix it, but better to do it in advance.

 

Traveler's checks or cash work really well, but having a backup funding card around is a good backup as well.

 

DML

[DMLyons]

Also, they are putting in authorizations for each night of charges.. but its still random on what charges get authed. I have not figured that part out yet.. I know I had $100 in charges on a day, but there would only be a new auth for about $50.

 

It probably depends on the time they do it. For instance, if you did a lot of evening charges, the update to the bank may have been at 2 pm...or 6 pm, and they only caught half the charges you made that day in the capture for that day.

 

DML

[blindrid]

I think NCL advises against using a debit card because of the holds that are put on them. Others have already covered using cash instead - seems like the best policy to me if you do not have/want to use a credit card.

 

You are right as it's on their website. Being in the banking world, I've seen huge problems with holds or large blocks of cards being cancelled due to fraud issues from third party vendors.

 

I would never use a Debit card for that purpose...... They are not foolproof.

[hartsnvt]

There are a lot of posts on this forum regarding debit cards. Ncl does not release the hold, your bank does and some banks (per some posters) wait 3-4 weeks until they release the hold. Call your bank and find out what their policy is and advise them that you will be in Miami (or wherever), plus what islands you may be using the card on. We used cash for our account. We went to the service desk after checking in and put $200 down. We then checked every other day or so and added more when needed. We kept our stash in our safe and only took $50-$100 in the ports. It worked out great! The last morning we received our bill and we had a $59 credit that they were going to send in a check, but (following great advice from this forum), we just went to guest services and they gave us our cash back.

[Rochesterboatingdotcom]

Also, be careful about using your debit card in ATM's on the islands. My bank put a lock on my card once when I tried to use it on St Marten. No damage done, but couldn't use it again until I phoned.

[blindrid]

Also, be careful about using your debit card in ATM's on the islands. My bank put a lock on my card once when I tried to use it on St Marten. No damage done, but couldn't use it again until I phoned.

 

Ours pretty much does not take any foreign transactions as that is the majority of the fraud is and is virtually impossible to trace, not knowing if it's a manufactured batch of cards, etc. We took the approach while it may be an inconvenience, the majority of customers have credit cards. It may sound drastic but for a small bank it routinely became tens of thousands of dollars.

 

I don't know how the thieves do it but they are good at it. The consumer is much better protected with a credit card as it's not your money you are chasing and a lot of times a lot of damage has occurred before you know it has happened.

[hladygirl]

We have used debit card on all of our cruises with no problem. We make sure there is more than enough money in the account, we go to the bank and sit there while they put our itineraries in the computer and have direct deposit of our paychecks (no one is home for two weeks to spend it. Never had a problem with holds on the account. We do only use cash on the islands.