Cunard and Debit Card Issues

[Winchester Ranger]

We just returned from the Norwegian Fjords cruise on QM2 and sure enough the Cunard debit card issue previously discussed on CruiseCritic as far back as 2022 reared its ugly head for us.  As with many people we decided to use a debit card on our cruise account due to favourable exchange rates with Cunard (Carnival) who bill in dollars.  Each day I would see an authorisation posted to my bank account for the balance of our spending, no problem there, but at the end of the cruise Cunard posted the full amount (which was paid) but left the "pending" authorisation for the same balance on our account as well.  While Cunard does not actually receive this money, my bank will hold it as pending until the pending authorisation times out, a period of up to 30 days depending on the bank, and while I should eventually get the money back it means that in the interim I have effectively paid double the amount on my room account.

 

Maybe I'm being premature and the charge will disappear tomorrow but right now it's sufficiently annoying to put me off Cunard for future cruises in spite of this being cruise number 3 for us.  Thanks for listening to the vent !

 

 

[jazzyboom]

I understand 

I was on the same cruise

To get around this issue  I have a chase debit card and transfer money into that account to cover the first pre authorisation to register the card (1$)

 

After that all the attempts by cunard to charge me daily are declined (as there is no money to cover the daily charges)

 

I then transfer enough money to my chase account to cover my final bill by 2am on the last night of the cruise 

[ShipboardSteve]

Cunard explains the pre-authorisation on its page at https://www.cunard.com/en-gb/cunard-stories/disembarkation-day where it says "Please note that, to ensure funds are available on your credit/debit cards, pre-authorisation holds are placed on your account throughout your voyage.  This ensures peace of mind for you that these funds have been reserved to cover all of your on board expenses. No funds will be debited from your credit/debit card until the final payment is processed. Pre-authorisation holds will vary by your bank provider but should be released within 14 business days." 

This implies a single payment to pay for the expenditure - but doesn't say a daily charge! Perhaps it would be better if they said openly that they would take payment at the end of each day on board?

[Host Hattie]

12 minutes ago, ShipboardSteve said:

This implies a single payment to pay for the expenditure - but doesn't say a daily charge! Perhaps it would be better if they said openly that they would take payment at the end of each day on board?

But that's what they do, there's no daily charge. 

[D&N]

1 hour ago, Winchester Ranger said:

a period of up to 30 days depending on the bank,

I don't quite understand what that has to do with Cunard, or any other supplier of goods or services. Is the problem not your bank's policy?

 

In our case if real time exchange rates are likely to be favourable to us, we would use a credit card that charges no exchange fees and uses close to live money market rates.

 

We have a debit card, which we can load with USD from GBP or EUR when the dollar is weak. That card removes any authorisation amounts instantly when the authorisation is either replaced by an actual charge or an authorisation for the same charge is made on a different card. I've watched this happen on the app related to the card on my phone screen both on QM2 and in a New York hotel belonging to the Accor Group.

We can recoup the card's small FX fee when converting any remaining USD back to GBP or EUR by choosing to do so when the dollar is strong.

[david63]

2 hours ago, jazzyboom said:

After that all the attempts by cunard to charge me daily are declined (as there is no money to cover the daily charges)

I'm surprised that you can get away with that as I have known passengers on other Carnival brands having to make other payment arrangements in similar cases.

 

2 hours ago, ShipboardSteve said:

but doesn't say a daily charge

It is not a daily "charge" but a pre authorisation.

 

58 minutes ago, D&N said:

I don't quite understand what that has to do with Cunard, or any other supplier of goods or services. Is the problem not your bank's policy?

It is not totally the bank's policy in that yes if a pre authorisation is not claimed then it rolls off after however many days but it is compounded by the fact that Carnival do not release the pre authorisations when they take the final amount - whether this has to do with there being multiple pre authorisations against one payment or that Carnival's IT is just not up to the task, I cannot say.

[D&N]

10 minutes ago, david63 said:

by the fact that Carnival do not release the pre authorisations when they take the final amount - whether this has to do with there being multiple pre authorisations against one payment or that Carnival's IT is just not up to the task, I cannot say.

That was not my experience. I registered a Wise debit card, which had a USD balance in excess of our potential spend. As each transaction was registered the Wise app notified me of the update to the authorised amount and the available balance was updated immediately. The number of transactions was limited due to purchase of drinks package. There were two charges on the first day that should have been covered by the package. These were refunded a day or two later and I knew from the Wise app that they had been refunded before I checked the account on My Voyage. There were fifteen transactions in our two weeks. Early on the final morning the total was charged to the card and the remaining balance was instantly available.

Wise recorded the final transaction as being the date of the first authorisation.

[Pushpit]

This isn't unique to cruise lines, car rentals and longer hotel stays can cause similar problems.  

 

As effectively hinted by @D&N it may be worth just getting a debit or credit card purely for one's annual holidays, perhaps via a virtual bank. You still need enough in that debit card to cover the pre-authorisation amount, which can be considerable for car rentals, depending on collision damage waiver implications. But at least it won't mess up your main current account along the way.

Some credit cards charge forex at close to inter-bank rates.

[majortom10]

Just use a credit card and saves all the hassle.

[Jim_Iain]

I'm sure this has been debated before and regulations may be different in the U.S. than UK or other countries.

 

At least in the U.S.  

 

Credit cards offer better protection against fraud, as they limit your liability, allow you to dispute charges, and are not directly linked to your bank account. Debit cards offer less protection against fraud, as they expose your money to theft, and are harder to reverse transactions or get your money back

 A link from my Bank

 

 

Credit cards offer better protection against fraud, as they limit your liability, allow you to dispute charges, and are not directly linked to your bank account. Debit cards offer less protection against fraud, as they expose your money to theft, and are harder to reverse transactions or get your money back

https://www.bankrate.com/credit-cards/building-credit/credit-card-vs-debit-card/

[tacticalbanjo]

Debit card preauthorisations regularly come up on other cruise forums too so you might struggle to find an alternative line. It also comes up about petrol stations and online shopping deliveries, essentially, any service where the goods/services are delivered before the invoice is sent and the final bill will not be known until after the goods/services is delivered. 

 

And yes, you get better protection in the UK when you use a credit card too. I use a commission free credit card for all foreign currency spending. Cunard aren't likely to rip me off but if I use if in the wrong place abroad then at least fraudsters can't clear out my current account and make my mortgage or bill payments bounce.

[david63]

There was an interesting comment yesterday on the P&O forum from an insider saying that P&O (aka Carnival UK) could release the pre authorisations but they don't - make of that what you will!

[Toffeegirl68]

On 6/12/2024 at 6:46 AM, D&N said:

That was not my experience. I registered a Wise debit card......

When I boarded QE in Auckland in Feb this year, I registered my credit card - I had hoped to pay my balance on board with my Wise card but was allowed to. I might try your method next year.....