what's with credit card preauthorization charge?

[Fouremco]

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

 

nor I :)

I rather suspected that would probably be the case, as I've not noticed a difference either, but I'd wondered if that was the general finding of others.

[dakrewser]

Just speculating, but one reason for the delay in authorization could be that the check-in software simply registers the details which are later transmitted (perhaps in bulk) to the clearing house.

[kazu]

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.

 

So, it boils down to staff and more $.

 

I am sure that the bean counters have done their job and it is cheaper for the losses on board than bringing more people on or the other solutions to resolve the issue.

 

I suspect that the # is not 15% as you reported but more like the 3-5% that you had previously reported (if memory serves).

 

I am sure when the day arrives that it is worth paying extra staff they will do it

[BruceMuzz]

So, it boils down to staff and more $.

 

I am sure that the bean counters have done their job and it is cheaper for the losses on board than bringing more people on or the other solutions to resolve the issue.

 

I suspect that the # is not 15% as you reported but more like the 3-5% that you had previously reported (if memory serves).

 

I am sure when the day arrives that it is worth paying extra staff they will do it

 

You are probably correct about the costs vs solutions.

 

The percentage of deadbeats varies by voyage, ship, cruise line, and season. The only constant is the fact that the number continues to increase. Ten years ago the number was around 3% to 5%. Two years ago we were seeing around 10%. Now it is hitting 15% regularly.

 

Last year the State of California had to make special arrangements with cruise lines that have ATMs onboard.

California now gives welfare funds in the form of debit cards.

The people receiving these cards were using them to buy cruises. Once they got onboard, they used the ATMs to get out whatever money they had left on the cards - but then had no money left to pay their bar bills.

All the shipboard ATMs are now programmed to reject California State Welfare Debit Cards.

But the Welfare recipients are still able to use the cards to purchase cruises. And they still cannot afford to pay their bar bills.

[Copper10-8]

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".

 

Thanks for your insight Bruce! Enjoy Sète! :)

[kazu]

You are probably correct about the costs vs solutions.

 

The percentage of deadbeats varies by voyage, ship, cruise line, and season. The only constant is the fact that the number continues to increase. Ten years ago the number was around 3% to 5%. Two years ago we were seeing around 10%. Now it is hitting 15% regularly.

 

Last year the State of California had to make special arrangements with cruise lines that have ATMs onboard.

California now gives welfare funds in the form of debit cards.

The people receiving these cards were using them to buy cruises. Once they got onboard, they used the ATMs to get out whatever money they had left on the cards - but then had no money left to pay their bar bills.

All the shipboard ATMs are now programmed to reject California State Welfare Debit Cards.

But the Welfare recipients are still able to use the cards to purchase cruises. And they still cannot afford to pay their bar bills.

 

WOW! I know some 7 day cruises can be cheap (we are not usually on those) from what I have read, but seriously???

 

Welfare must be generous in that state. I am at a loss to figure out how a welfare recipient would even contemplate booking a cruise (not doubting your post, just dumbstruck).

 

all, I can say is if I were unemployed or on welfare, the last thing on my mind would be a cruise. WOW!

[Fouremco]

all, I can say is if I were unemployed or on welfare, the last thing on my mind would be a cruise. WOW!

Which is why you aren't and they are. Different priorities and lifestyle choices.

[dakrewser]

all, I can say is if I were unemployed or on welfare, the last thing on my mind would be a cruise. WOW!

 

A recent news story:

Kansas governor Brownback To Sign Law Banning Welfare Dollars From Cruise Ships

 

:)

[TAD2005]

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.

I would think that HAL could not put the authorization hold on a guest's card 2 or 3 months out from boarding at the time when they complete their on-line checkin. That would be tying up those funds way in advance of the guest receiving any products or services. That would not be ethical. As previously mentioned on this thread, the hold can be in the thousands of $$, especially on long cruises. My hold on a 26 day cruise for the 2 of us will be $1580. ($30 X 2 X 26 days). Note, the hold for cruises longer than 25 days is only $30, not $60. I would imagine that anyone using a credit or debit card would have a real problem with a freeze on their account 2 to 3 months out for thousands. HAL asks for your credit info at on-line checkin so you will be OK to make advanced shore excursion purchases and any other advance purchase. The hold for the actual on-board expenses cannot happen until you board and actually present your card. And, even if you purchase a full beverage package, and all your tours and wine packages in advance, HAL will still put a hold for $60 per day/per pax. Who knows, you may get the urge to "let it ride" in the casino and blow through thousands.

[cruz chic]

Speaking as someone that has been unemployed for a bit it not anyone business what I do and I find that remark offensive, but not surprising. I'm not on unemployment insurance and if I was there is no way I could collect and be on a cruise. They have ways of checking these things. I have no idea about welfare since I've never been on it but I wonder why they wouldn't be able to find that out. At the moment I have enough to pay for a cruise and easily have the credit for the authorization.

[RuthC]

I have no idea about welfare since I've never been on it but I wonder why they wouldn't be able to find that out.

There's no reason why "they" should find it out.

Welfare funds are issued based on need. They are spent based on self-determination.

[kazu]

A recent news story:

Kansas governor Brownback To Sign Law Banning Welfare Dollars From Cruise Ships

 

:)

 

simply amazing. Here, they still get cheques to make sure they are in their place of residence. I am simply stunned, still

[Fouremco]

A recent news story:

Kansas governor Brownback To Sign Law Banning Welfare Dollars From Cruise Ships

 

:)

An interesting article, although I was somewhat taken aback by the comment "on cruise ships and in other unsavory venues". :eek:

[CowPrincess]

>SNIP<

HAL asks for your credit info at on-line checkin so you will be OK to make advanced shore excursion purchases and any other advance purchase. The hold for the actual on-board expenses cannot happen until you board and actually present your card. And, even if you purchase a full beverage package, and all your tours and wine packages in advance, HAL will still put a hold for $60 per day/per pax. Who knows, you may get the urge to "let it ride" in the casino and blow through thousands.

 

Bolding mine.

 

We can purchase shore excursions, dining, drink packages and OBCs in advance of doing the online check-in. Each of those purchases has to be paid for at the time of ordering . Providing the credit card info when doing online check-in has nothing to do with those "advance purchases".

[POA1]

I would think that HAL could not put the authorization hold on a guest's card 2 or 3 months out from boarding at the time when they complete their on-line checkin.

 

They can't. They don't.

[dakrewser]

An interesting article, although I was somewhat taken aback by the comment "on cruise ships and in other unsavory venues". :eek:

 

They must mean Costa or Royal Caribbean

;)

[Globaliser]

I would think that HAL could not put the authorization hold on a guest's card 2 or 3 months out from boarding at the time when they complete their on-line checkin.

HAL could take the authorisation 24 hours before check-in. So when the passenger arrives at the check-in desk, HAL already knows whether they have a credit problem and could refuse carriage (or onboad credit facilities) if the passenger isn't able to sort it out then and there.

HAL asks for your credit info at on-line checkin so you will be OK to make advanced shore excursion purchases and any other advance purchase.

As CowPrincess says, this is not correct. I've had no difficulty giving HAL my standard credit card information in the online check-in process. However, using the same information for an advance purchase, my card details were rejected by that part of the HAL website. I happen to know a workaround that got the transaction authorised and paid. But this demonstrates that the online check-in information is not used for advance purchases.

[blizzardboy]

This is no different than what any resort, hotel, or rental car company does with your card. They want to make sure a cruiser doesn't over spend their ability to pay.

[TAD2005]

HAL could take the authorisation 24 hours before check-in. So when the passenger arrives at the check-in desk, HAL already knows whether they have a credit problem and could refuse carriage (or onboad credit facilities) if the passenger isn't able to sort it out then and there.As CowPrincess says, this is not correct. I've had no difficulty giving HAL my standard credit card information in the online check-in process. However, using the same information for an advance purchase, my card details were rejected by that part of the HAL website. I happen to know a workaround that got the transaction authorised and paid. But this demonstrates that the online check-in information is not used for advance purchases.

I have seen posts in this thread and others where a Canadian resident lists a Canadian Dollar credit card in the online checkin, and then presents a USD card at the pier for onboard charges. It has something to do with the CAD/USD exchange rate. HAL says they will not put the actual authorization hold on your card until boarding. There must be some reason they feel that cannot perform that hold in advance of embarkation. I would think that if they felt they were justified in putting the hold on a guest's on-file card, a few days before boarding, their bean counters would certainly do it. It would save them loads of money in fraudulent on-board charging.

[BruceMuzz]

I have seen posts in this thread and others where a Canadian resident lists a Canadian Dollar credit card in the online checkin, and then presents a USD card at the pier for onboard charges. It has something to do with the CAD/USD exchange rate. HAL says they will not put the actual authorization hold on your card until boarding. There must be some reason they feel that cannot perform that hold in advance of embarkation. I would think that if they felt they were justified in putting the hold on a guest's on-file card, a few days before boarding, their bean counters would certainly do it. It would save them loads of money in fraudulent on-board charging.

 

Several years ago Princess tried to run the authorizations a few days before the voyage started. But there were so many people with credit problems (they barely managed to clear their credit before the cruise began) that far too many cards were declined. The cruise line discovered that if they tried the authorizations after the cruise began, there was a much higher success rate with credit and hold authorizations. It seems that a high percentage of today's cruisers are living from paycheck to paycheck, and just do not have the available credit to get this done in advance.

[TAD2005]

Several years ago Princess tried to run the authorizations a few days before the voyage started. But there were so many people with credit problems (they barely managed to clear their credit before the cruise began) that far too many cards were declined. The cruise line discovered that if they tried the authorizations after the cruise began, there was a much higher success rate with credit and hold authorizations. It seems that a high percentage of today's cruisers are living from paycheck to paycheck, and just do not have the available credit to get this done in advance.

That's what I heard from a HAL purser a while back. After everyone has boarded and the ship sailed, the business office burns the midnight oil transmitting all of the card authorization holds back to Seattle. They determine the cards approved and also the ones disallowed. Then they start contacting the guests for another functioning card or a cash deposit.

[Lizzie68]

They must mean Costa or Royal Caribbean

;)

 

And what is that based on? This RCI cruiser would love to know.:rolleyes:

[kazu]

Several years ago Princess tried to run the authorizations a few days before the voyage started. But there were so many people with credit problems (they barely managed to clear their credit before the cruise began) that far too many cards were declined. The cruise line discovered that if they tried the authorizations after the cruise began, there was a much higher success rate with credit and hold authorizations. It seems that a high percentage of today's cruisers are living from paycheck to paycheck, and just do not have the available credit to get this done in advance.

 

I don't know if I would say that anymore cruisers live from pay cheque to pay cheque than the rest of the world but never the less....

 

Then, why not call, get the holds approved with those that do take care of their credit and flag the ones declined and that would at least save those people on board some work?

 

Just a thought.

[dakrewser]

And what is that based on? This RCI cruiser would love to know.:rolleyes:

 

Reputation.

[Host Walt]

...Then, why not call, get the holds approved with those that do take care of their credit and flag the ones declined and that would at least save those people on board some work?

 

Just a thought.

It's illegal (at least in the USA) to process a hypothetical charge as a legitimate charge on a credit card. And the cruise line cannot transmit legitimate on board charges to their head offices while at sea.

 

The "hold" procedure is routinely used as well by car rental firms and hotels for the same reason.