what's with credit card preauthorization charge?

[richwmn]

My question would be this: Why aren't the authorizations done when the card is swiped at checkin? In most cases the terminal area could have at least a dsl connection available which would be able to handle the authorizations without any problems or delays. This would insure the patron had sufficient credit before the cruise began.

[jmkennett]

This seems to be a weakness in the system. Why doesn't the cruise line withhold the boarding pass / room key / charging card from the passenger until after the hold has been authorised? This doesn't have to wait for 24-48 hours; with modern communications it can be done reliably from the shoreside check-in location in seconds at most.

 

No authorisation (or equivalent cash deposit) = no cruise.

 

In terms of affordability, I've personally been taken aback by the suggestion made in this thread that someone might take four people on a cruise yet only have $5,000 of available credit on their credit cards. If they're that close to the line, should they really be going on a cruise?

 

In hotels they will deactivate your room key and you will not get back in until you take care of your account.

[jmkennett]

My question would be this: Why aren't the authorizations done when the card is swiped at checkin? In most cases the terminal area could have at least a dsl connection available which would be able to handle the authorizations without any problems or delays. This would insure the patron had sufficient credit before the cruise began.

 

Most hotel resorts authorize $100-$120 additional per day. Night audit runs a report every night to see if any room needs additional authorization and if the card has declined. The computer system automatically tries to authorize more funds.

 

If it can't, that is when night audit tries to manually authorize the card. If it declines, the guest is contacted. If contact cannot be made after a few tries, the guest is locked out of the room.

 

I can't figure out why HAL and the other cruise lines can't do this. It's not that difficult and really doesn't cause any problems. There are always going to be a few dishonest ones, but most people take care of it really quick and are very cordial and often embarrassed about it.

[Fouremco]

In hotels they will deactivate your room key and you will not get back in until you take care of your account.

That might not be a viable solution when somewhere in the middle of the ocean. While hotels and cruise ships may have similar issues, land-based solutions aren't necessarily transferable.

[richwmn]

Most hotel resorts authorize $100-$120 additional per day. Night audit runs a report every night to see if any room needs additional authorization and if the card has declined. The computer system automatically tries to authorize more funds.

 

If it can't, that is when night audit tries to manually authorize the card. If it declines, the guest is contacted. If contact cannot be made after a few tries, the guest is locked out of the room.

 

I can't figure out why HAL and the other cruise lines can't do this. It's not that difficult and really doesn't cause any problems. There are always going to be a few dishonest ones, but most people take care of it really quick and are very cordial and often embarrassed about it.

 

I understand the night auditor function, however in an earlier post BruceMuzz states:

Once onboard, the Purser's Office needs to get a hold authorization from the bank that issued the credit card. This hold request normally takes place during the first 24 to 48 hours of the cruise. But the passenger accounts are ALL open for charging.

 

Authorizing at checkin would get rid of the 24 - 48 hour delay in getting the hold, and keep those that don't have the credit available from charging.

On other nights the night auditor could check for additional holds if necessary, but the initial hold of $60 p/p/d (for HAL) would handle a large portion of the holds necessary for the entire cruise.

[BruceMuzz]

I understand the night auditor function, however in an earlier post BruceMuzz states:

 

 

Authorizing at checkin would get rid of the 24 - 48 hour delay in getting the hold, and keep those that don't have the credit available from charging.

On other nights the night auditor could check for additional holds if necessary, but the initial hold of $60 p/p/d (for HAL) would handle a large portion of the holds necessary for the entire cruise.

 

Getting the credit card authorization at check-in would seem to make sense. All the cruise lines have tried this at one time or another. But getting that authorization adds anywhere from 3 to 10 minutes per cabin at check-in. Multiply that time by 1500 cabins and you end up with an unacceptably long wait to get people onboard.

That problem could be solved by hiring and training additional check-in staff, and purchasing additional check-in computers. Most cruise lines are not willing to do that. Many cruise terminals do not have the infrastructure to support it.

 

Another solution would be to get the credit authorization hold before the passengers arrive at the terminal. This would also require hiring additional staff to work at the cruise line head office and purchasing additional equipment to perform these duties. This could work - except the cruise lines have discovered that a high percentage of todays cruisers are living from paycheck to paycheck. The credit limits on their credit cards are not cleared until just before they board the ship. Trying to get credit authorizations before that point would result in much wasted time and even more cards rejected.

 

There is no easy solution to this issue.

[BruceMuzz]

Most hotel resorts authorize $100-$120 additional per day. Night audit runs a report every night to see if any room needs additional authorization and if the card has declined. The computer system automatically tries to authorize more funds.

 

If it can't, that is when night audit tries to manually authorize the card. If it declines, the guest is contacted. If contact cannot be made after a few tries, the guest is locked out of the room.

 

I can't figure out why HAL and the other cruise lines can't do this. It's not that difficult and really doesn't cause any problems. There are always going to be a few dishonest ones, but most people take care of it really quick and are very cordial and often embarrassed about it.

 

Most hotel resorts do not have 1500 occupied rooms every night - and just one night auditor like most cruise ships. Most resort hotels can make a toll free telephone call to the credit card company any time they like. Cruise ships cannot do that.

For some reason, cruise ships seem to attract a larger percentage of deadbeats than hotels do.

[BruceMuzz]

In hotels they will deactivate your room key and you will not get back in until you take care of your account.

 

Since cruise ships are not legally hotels, but international transport vehicles, it is generally illegal to do this on a cruise ship.

It is also generally illegal for us to hold a non-paying passenger onboard until he pays us.

And since a passenger has already paid his/her fare, it is illegal to throw them off the ship for failing to pay their bar bill.

Edited July 31, 2015 by BruceMuzz

[BruceMuzz]

Edited to say the quote malfunctioned. The quote is above and my reply is below.

 

 

I agree completely. What if there were to be a medical emergency? Even if you have insurance the hospital may demand an up front payment. If a family member is in hospital in a strange city then there would be hotel and meal charges for the rest of the family. It may be necessary to fly home from a distant place. If the cruise line already has a hold on your credit line how would a person manage an emergency with only a $5000 limit on a credit card? It is a scary prospect.

 

I have met an astonishing number of cruise passengers who flew halfweay around the world to join a ship, without credit cards, checks, and very little cash. I often meet them at the Front Desk when they have just discovered that tipping is expected and they had not budgeted for that. Typically the surprised passenger reaches into his pocket and pulls out a handful of crumpled bank notes and a few coins, explaing that this is all the money he has brought along, all carefully planned so that he can afford to purchase one beer per day during the cruise. Air tickets, transfers, etc are all pre-paid. When I enquire about a contingency plan in case something goes wrong, the standard answer is, "I never thought of that".

[retiredkid]

QUESTION: We live in Canada. I will be bringing two credit cards. My regular, Canadian funds, high limit card as well as a lower limit US Fund credit card. Will I be able to use the Canadian card to place the hold, but pay with US at the end of the cruise? Or does the bill have to go through on the one on file. If so, I better up my limit on the US one.

[cruz chic]

I have met an astonishing number of cruise passengers who flew halfweay around the world to join a ship, without credit cards, checks, and very little cash. I often meet them at the Front Desk when they have just discovered that tipping is expected and they had not budgeted for that. Typically the surprised passenger reaches into his pocket and pulls out a handful of crumpled bank notes and a few coins, explaing that this is all the money he has brought along, all carefully planned so that he can afford to purchase one beer per day during the cruise. Air tickets, transfers, etc are all pre-paid. When I enquire about a contingency plan in case something goes wrong, the standard answer is, "I never thought of that".

 

Omg. I only wish I could go thru life so oblivious. I'd be a lot less stressed.

[cruz chic]

QUESTION: We live in Canada. I will be bringing two credit cards. My regular, Canadian funds, high limit card as well as a lower limit US Fund credit card. Will I be able to use the Canadian card to place the hold, but pay with US at the end of the cruise? Or does the bill have to go through on the one on file. If so, I better up my limit on the US one.

 

Yes, you can switch but you may have to do it the day before or so. I use a credit card for the hold but I almost always pay in cash before the end of the cruise.

[Fouremco]

QUESTION: We live in Canada. I will be bringing two credit cards. My regular, Canadian funds, high limit card as well as a lower limit US Fund credit card. Will I be able to use the Canadian card to place the hold, but pay with US at the end of the cruise? Or does the bill have to go through on the one on file. If so, I better up my limit on the US one.

 

 

I'm in exactly the same position. My USD card will suffice to cover the hold as well as all of my anticipated expenses, but if something does go wrong and I'm faced with a much larger bill, I'll simply pay the balance with my CAD card. In our case, we pre-pay most things, so our actual onboard expenses after OBC are quite small. If they weren't, I'd probably increase the USD card's limit.

 

 

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[Fouremco]

Omg. I only wish I could go thru life so oblivious. I'd be a lot less stressed.

 

 

Ignorance is bliss... [emoji4]

 

 

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[Lizzie68]

QUESTION: We live in Canada. I will be bringing two credit cards. My regular, Canadian funds, high limit card as well as a lower limit US Fund credit card. Will I be able to use the Canadian card to place the hold, but pay with US at the end of the cruise? Or does the bill have to go through on the one on file. If so, I better up my limit on the US one.

 

I switched when my wallet and USD credit card were stolen in port mid-cruise. I sat there while the concierge transmitted the replacement credit card details to onboard accounting (I assume) and to Seattle. Well, what a hash they made of that. They still charged my final billing to the original card which had been stolen and cancelled. Trouble was, I had a credit because I had prepaid most everything, and purchased lots of OBC. It took me weeks to sort it out and collect it. My bank was partly to blame too. This was probably a unique situation, but be sure to check part way through your cruise that they have really registered the replacement card. Before anyone starts picking, there are details in this story missed because it was complex, but this is just to serve as a warning not to trust that the onboard accounting or Seattle will actually do what you asked. Check, and then check again.

[retiredkid]

for sure, Lizzie, I will be checking. Since our Loonie is tanking, I have prepaid a bunch of OBC as well, so all should be well. I am happy to hear that *if required* I will be able to charge on my Canadian card.

[3rdGenCunarder]

Getting the credit card authorization at check-in would seem to make sense. All the cruise lines have tried this at one time or another. But getting that authorization adds anywhere from 3 to 10 minutes per cabin at check-in. Multiply that time by 1500 cabins and you end up with an unacceptably long wait to get people onboard.

That problem could be solved by hiring and training additional check-in staff, and purchasing additional check-in computers. Most cruise lines are not willing to do that. Many cruise terminals do not have the infrastructure to support it.

 

[some text deleted]

 

I don't understand why the hold takes so long to establish. If I buy something on a credit card, the charge goes through quickly, I sign the little paper and I'm on my way. If a credit card is going to be declined, that's practically instantaneous. Is there something about a hold that requires different processing?

 

Omg. I only wish I could go thru life so oblivious. I'd be a lot less stressed.

 

Couldn't say it better.

[richwmn]

I don't understand why the hold takes so long to establish. If I buy something on a credit card, the charge goes through quickly, I sign the little paper and I'm on my way. If a credit card is going to be declined, that's practically instantaneous. Is there something about a hold that requires different processing?

 

I was thinking the same thing.

 

I would equate it more to purchasing gas by using a card at the pump. You swipe your card at the pump and within seconds a hold is placed for the amount they think you will pump into your car. You put the gas in the car and again, within seconds, your purchase is finalized and you get a receipt. Generally, I find the charge has been posted to my account by the time I get home even if I am going directly home from the gas station.

 

Also, most restaurants only place a hold on your account when you are presented your bill. Later, they add the tips and finalize the charge. This hold also takes only a few seconds.

[Globaliser]

But getting that authorization adds anywhere from 3 to 10 minutes per cabin at check-in.

Add me to the list of people who don't understand why this should be.

 

I frequently buy airline tickets that cost many multiples of the amounts that a cruise line would be seeking to get authorised. The airline usually manages to get the authorisation and deliver the webpage with the booking confirmation and ticket number within a couple of seconds, literally.

[Fouremco]

I was thinking the same thing.

 

I would equate it more to purchasing gas by using a card at the pump. You swipe your card at the pump and within seconds a hold is placed for the amount they think you will pump into your car. You put the gas in the car and again, within seconds, your purchase is finalized and you get a receipt. Generally, I find the charge has been posted to my account by the time I get home even if I am going directly home from the gas station.

 

Also, most restaurants only place a hold on your account when you are presented your bill. Later, they add the tips and finalize the charge. This hold also takes only a few seconds.

 

Add me to the list of people who don't understand why this should be.

 

I frequently buy airline tickets that cost many multiples of the amounts that a cruise line would be seeking to get authorised. The airline usually manages to get the authorisation and deliver the webpage with the booking confirmation and ticket number within a couple of seconds, literally.

I agree that hold transactions are usually accomplished in seconds, not minutes. However, most of my holds are placed close to home using a domestic credit card. I wonder if a hold on a UK or Australian card would be processed as quickly in Port Everglades? Just a thought...

[Lizzie68]

Add me to the list of people who don't understand why this should be.

 

I frequently buy airline tickets that cost many multiples of the amounts that a cruise line would be seeking to get authorised. The airline usually manages to get the authorisation and deliver the webpage with the booking confirmation and ticket number within a couple of seconds, literally.

 

I'm thinking it's HAL's antiquated system that makes it so time-consuming. 3 to 10 minutes? It's not likely the bank or CC company that takes that much time.

[BruceMuzz]

I'm thinking it's HAL's antiquated system that makes it so time-consuming. 3 to 10 minutes? It's not likely the bank or CC company that takes that much time.

 

Costa, Seabourn, Carnival, NCL, Princess, RCCL, and Celebrity do it the same way HAL does. I guess all their systems are antiquated as well?

[Globaliser]

I agree that hold transactions are usually accomplished in seconds, not minutes. However, most of my holds are placed close to home using a domestic credit card. I wonder if a hold on a UK or Australian card would be processed as quickly in Port Everglades?

I've never noticed any difference in speed whether I'm putting through a big transaction here in the UK or overseas.

[kazu]

I've never noticed any difference in speed whether I'm putting through a big transaction here in the UK or overseas.

 

nor I :)

[Globaliser]

And to add to my puzzlement, the HAL online check-in system asks for your credit card details. Why hasn't HAL used these already by the time you get to check-in? If HAL just ignores those details, what was the point of asking for them at all? All the details can be captured in one swipe at the check-in desk (which also takes just a couple of seconds, not 3-10 minutes).

 

If HAL doesn't get an authorisation before the room key is handed over at the check-in desk, I do wonder what is going on.