Using a debit card for shipboard expenses

[dmdiver]

We always use a credit card.  I know someone who used their debit card.  Due to the holds placed on the account, when they got ready to leave the port at the end of the cruise, they were unable to purchase gas for their car.

[enchantingodin]

On 1/30/2022 at 9:42 AM, BirdTravels said:

NCL will run authorizations against your debit card throughout the cruise. And run the total balance due at the end of your cruise. YOUR BANK will almost always take each authorization and final charge, and place a hold against the funds in your account. 

 

Example: 

 

If, over the course of your cruise, you run up a $2000 onboard bill (e.g., Daily service charges $434 for 4 people, specialty dining of $566, and shore excursions of $1000).

 

NCL could place authorizations of $500, $700, $600, $600 ($2400 total) against your debit card over the course of the cruise. They will always authorize more to cover future expenses (i.e., they do not try to authorize each charge made). They will make authorizations based on your spending patterns. It's like a lot of hotels when they tell you at check-in that they are running an authorization of $100 for "incidental charges" (always wanting to make sure that you are "good for the money" before allowing you to charge your room account). 

 

At the end of the cruise, NCL runs the actual charge for $2000 against your debit card.

 

Most/all banks are not smart enough (or willing to take the risk) to equate the $2000 actual charge against the multiple small authorizations.

 

YOUR BANK places holds on your funds.

 

YOUR BANK determines how long to hold funds for the authorizations. (Some hold for a few days, some hold for a few weeks to mitigate risk of the charge coming through).

 

At the end of the cruise, (1) you have $4400 of your funds tied up; (2) you must have much more than 2 times your onboard account worth of funds available in your bank account, otherwise that final charge will "bounce" and you will be stopped by security as you try to disembark and sent back to Guest Services to pay your bill with another form of payment. 

 

 

Wow, there is a lot of incorrect information to unload here. First and foremost is not THE BANKS fault. But whomever a company uses for merchant services. Banks process what is requested by those companies, as they are contractually obligated to do so by Visa. It's not that Banks are not "smart enough" it's that many consumers are not smart enough and have no idea how the system works.

[sanger727]

2 hours ago, enchantingodin said:

Wow, there is a lot of incorrect information to unload here. First and foremost is not THE BANKS fault. But whomever a company uses for merchant services. Banks process what is requested by those companies, as they are contractually obligated to do so by Visa. It's not that Banks are not "smart enough" it's that many consumers are not smart enough and have no idea how the system works.

The banks determine how long the holds stay on though. The holds could fall off after a few days. Some banks hold the money for 30 days.

[enchantingodin]

3 hours ago, sanger727 said:

The banks determine how long the holds stay on though. The holds could fall off after a few days. Some banks hold the money for 30 days.

This is not true. The merchant or state chooses the amount of time. As there are regulations by state (I'll admit, I don't know if every state has them) what the maxim allowed hold time is. Generally it's 10 days. However you are correct the maximum allowed federally is 30 by Visa. But it can also depend on what type of hold; gas station vs hotel vs rental car vs cruise line, etc etc. Banks have to follow state and federal laws/regulations. And they will not change that because someone (generally speaking - not directing at anyone here) is throwing a temper tantrum,  didn't know what they were doing, and is looking for someone else to blame other than themselves. It's all right there in the fine print that most people don't read.

 

However. If you behave like a decent humane being and reach out to the merchant who placed the hold and ask them to contact your bank to release said hold early. It can generally be done. But this also depends on both the merchant and banks policies.

 

So as a banker with 12 years experience, my advice to everyone is to always use a credit card everywhere unless the merchant (generally big box stores) uses a point of sale system. Because all gas stations, restaurants, and travel companies (hotels, car rentals, cruises) use a third party to process your debit card as a credit card. The system they use does not differentiate between the two. You WILL get holds on your account and it can be a pain to get them removed. But don't yell and scream at your poor bankers. THEY did not decide to put the hold on your account. YOU did by using your debit card.