Authorization vs. Charging

Some car rentals authorize the amount of rental on a credit card, while others actually charge it at time of rental. How does this effect the customer's credit card? Let me explain.

Authorization means there is a hold of a certain amount placed on renter's credit card so the renter can not use that amount of money, which in turn effects the credit limit of the card. Renter is not actually charged the amount of rental until the car is returned. Therefore, there is no refund of extra authorized money because the card has not been actually charged. Authorization also can not be removed once the deed is done. What happens is that the card is charged upon return for amount of rental and any extra authorized money evaporates in a day or two when it goes through the system. If customer pays for rental by other means, the credit card authorization evaporates in a day or two when it goes through the system. Releasing authorization on a credit card is not immediate and requires a phone call to credit card company to release the authorization any faster.

Car rentals who authorize their contracts are less likely to accept debit/check cards because a hold on a bank account only lasts 24 hrs. And a bank account can not be forced charged.

Charging the car rental means the credit card is charged immediately and refunds on the credit cards can occur immediately too. Car rentals that charge are more likely willing to take debit/check cards for that very reason. Occassionly, the refund on a debit card can take 2 or 3 days to completely go through the system and show up on your credit card statement, unless someone reading this has steroids for computers to make them process information quicker.

Does all that make sense? Post later. Genie out.