credit card preauthorization hold

[welshcorgie]

How much do  the cruiselines hold as preauthorizations on your credit card

[CruiserBruce]

Varies by cruise line. Do you have a specific cruise line in mind? If so, perhaps ask on the board for that cruise line.

[1025cruise]

Usually around $200. Then any and all charges are pre-authed until the final amount at the end of the cruise. Note if using a debit card, this holds your funds until released.

[CruiserBruce]

31 minutes ago, 1025cruise said:

Usually around $200. Then any and all charges are pre-authed until the final amount at the end of the cruise. Note if using a debit card, this holds your funds until released.

See, this indicates the variety of choices depending on the cruise line. Holland America is $60/day.

[John Bull]

Still un-resolved despite the technology, the "hold" remains for a week or often more after your card has been charged with your actual spend. 

Not a problem if you spend well below your credit limit, but causes problems for those who run their finances tight 

 

JB 🙂

[klfrodo]

This can be a huge problem for those with low limit credit cards or those using debit card.

First of all, the cruise line has no ability to withdraw a hold. The amount of time a hold stays on your account is completely dependent on the policies of your financial institution. Some people say they never see the holds whereas others can see the hold. I see my holds, but they usually clear in 24 hours.

 

What has happened in the past is the cruise line verifies the credit card by placing a hold. Let's say it's $200. Then, as your on board account reaches a certain level, they will place another hold for another $200 and so on and so on.

 

Then, at the end of the cruise when they finalize, the cruise line bills your account the total of your spending. Let's say that total is $400. So your account gets hit for the final $400, but you also have holds for $400. That's $800 of available credit you no longer have access to.

If at the beginning of the cruise, your debit account or credit limit was $1000, you only have access to $200.

[John Bull]

10 hours ago, klfrodo said:

This can be a huge problem for those with low limit credit cards or those using debit card.

First of all, the cruise line has no ability to withdraw a hold. The amount of time a hold stays on your account is completely dependent on the policies of your financial institution. Some people say they never see the holds whereas others can see the hold. I see my holds, but they usually clear in 24 hours.

 

 

Cruise lines blame the banks.

 

Banks blame the cruise lines - which is very strange cos there's the same delays in releasing holds on car rentals, hotels & other institutions. 

 

JB 🙂

[jsn55]

Nothing strange about the CC holds ... gives the banks rolling access to millions of 'free dollars'.  Just like insurance companies stretching out claims for 'more documentation' requests, its basic biz cash flow.  

[CruiserBruce]

37 minutes ago, jsn55 said:

Nothing strange about the CC holds ... gives the banks rolling access to millions of 'free dollars'.  Just like insurance companies stretching out claims for 'more documentation' requests, its basic biz cash flow.  

Except its a hold, not an actual charge. No money moves without a charge actually being transmitted.

[Denise72]

If the holds could cause a problem for you, there is also the option to fund your onboard spend with cash. I have frequently done this as a way to insure that we don't get carried away with the onboard spending. 

[Mary229]

I always use a card that will not be traveling with us for the cruise hold.  At the end of the cruise I may switch it out to my preferred travel card.  4 cards are necessary in our plan - one in his name, one in mine, one for the utilities and other at home expenses and finally one for the cruise hold.  For a 30 or 40 day cruise that pre authorized hold can add up quickly. 

[Donald]

Over the past few decades, the mass market cruise companies are seeing an increasing number of passengers who cannot pay their onboard bills at the end of the cruise. Over the past few years the number was going over 10%.

But that seems impossible if the cruise line is placing a hold on credit cards.

 

In reality, there is a growing number of cruisers who cannot afford to take a cruise - but go anyway. When they check in, they either present a credit card that has no available credit, or they promise to get the credit card “from their suitcase and bring it to Reception “sometime later”.

 

After departure, the Purser processes the holds on the credit cards. That is when he finds out which cards are worthless. He then sends a note to the passenger’s cabin, requesting an alternate form of payment. He also sends notes to the passengers who failed to give any credit cards, asking them to go to Reception and do so.

Meanwhile, those passengers with bad cards - or no cards at all - are busy in the bars and restaurants, casino, shops, spa, and shorex, charging purchases to their cabin account. But a good number of them cannot find the time to set up their payment arrangements.
OnDay 2, the Purser sends a reminder note to cabins that have still not arranged payment details.

On Day 4, another reminder note goes to those cabins, threatening to close charging privileges if payment is not arranged. The Pursers Department Staff also telephone the cabins, but it is rare that anyone answers the telephone.

On Day 5 or 6, the Purser suspends the accounts of those who failed to provide payment. But it is too late. These passengers were just playing the game. They already charged everything they needed for the cruise.

On Day 7 - debark day — those with outstanding bills are stopped by Security at the gangway and sent to Reception to settle their bills. When they get to Reception, they admit that they cannot afford to pay. The Purser has them sign a “promissory note” that requires them to pay the company “sometime in the future”. Then they leave the ship and are never heard from again. They know that the cruise line cannot afford to chase every deadbeat who sails with them.

This is why cruise lines place holds on credit cards - trying to minimize financial losses.

You are probably aware that every cruise ship operation has an onboard revenue budget. The mass market lines tend to average onboard revenue goals around $60 per passenger, per day. The credit card holds they place on your card reflect the average daily spend they expect.

 

[ontheweb]

2 hours ago, Donald said:

Over the past few decades, the mass market cruise companies are seeing an increasing number of passengers who cannot pay their onboard bills at the end of the cruise. Over the past few years the number was going over 10%.

But that seems impossible if the cruise line is placing a hold on credit cards.

 

In reality, there is a growing number of cruisers who cannot afford to take a cruise - but go anyway. When they check in, they either present a credit card that has no available credit, or they promise to get the credit card “from their suitcase and bring it to Reception “sometime later”.

 

After departure, the Purser processes the holds on the credit cards. That is when he finds out which cards are worthless. He then sends a note to the passenger’s cabin, requesting an alternate form of payment. He also sends notes to the passengers who failed to give any credit cards, asking them to go to Reception and do so.

Meanwhile, those passengers with bad cards - or no cards at all - are busy in the bars and restaurants, casino, shops, spa, and shorex, charging purchases to their cabin account. But a good number of them cannot find the time to set up their payment arrangements.
OnDay 2, the Purser sends a reminder note to cabins that have still not arranged payment details.

On Day 4, another reminder note goes to those cabins, threatening to close charging privileges if payment is not arranged. The Pursers Department Staff also telephone the cabins, but it is rare that anyone answers the telephone.

On Day 5 or 6, the Purser suspends the accounts of those who failed to provide payment. But it is too late. These passengers were just playing the game. They already charged everything they needed for the cruise.

On Day 7 - debark day — those with outstanding bills are stopped by Security at the gangway and sent to Reception to settle their bills. When they get to Reception, they admit that they cannot afford to pay. The Purser has them sign a “promissory note” that requires them to pay the company “sometime in the future”. Then they leave the ship and are never heard from again. They know that the cruise line cannot afford to chase every deadbeat who sails with them.

This is why cruise lines place holds on credit cards - trying to minimize financial losses.

You are probably aware that every cruise ship operation has an onboard revenue budget. The mass market lines tend to average onboard revenue goals around $60 per passenger, per day. The credit card holds they place on your card reflect the average daily spend they expect.

 

I realize they cannot "throw them in the brig" as there are no more debtor's prisons, but can they hold their luggage as collateral the same way a mechanic could hold your car until payment?

[clo]

2 hours ago, Donald said:

Over the past few decades, the mass market cruise companies are seeing an increasing number of passengers who cannot pay their onboard bills at the end of the cruise. Over the past few years the number was going over 10%.

But that seems impossible if the cruise line is placing a hold on credit cards.

 

In reality, there is a growing number of cruisers who cannot afford to take a cruise - but go anyway. When they check in, they either present a credit card that has no available credit, or they promise to get the credit card “from their suitcase and bring it to Reception “sometime later”.

 

After departure, the Purser processes the holds on the credit cards. That is when he finds out which cards are worthless. He then sends a note to the passenger’s cabin, requesting an alternate form of payment. He also sends notes to the passengers who failed to give any credit cards, asking them to go to Reception and do so.

Meanwhile, those passengers with bad cards - or no cards at all - are busy in the bars and restaurants, casino, shops, spa, and shorex, charging purchases to their cabin account. But a good number of them cannot find the time to set up their payment arrangements.
OnDay 2, the Purser sends a reminder note to cabins that have still not arranged payment details.

On Day 4, another reminder note goes to those cabins, threatening to close charging privileges if payment is not arranged. The Pursers Department Staff also telephone the cabins, but it is rare that anyone answers the telephone.

On Day 5 or 6, the Purser suspends the accounts of those who failed to provide payment. But it is too late. These passengers were just playing the game. They already charged everything they needed for the cruise.

On Day 7 - debark day — those with outstanding bills are stopped by Security at the gangway and sent to Reception to settle their bills. When they get to Reception, they admit that they cannot afford to pay. The Purser has them sign a “promissory note” that requires them to pay the company “sometime in the future”. Then they leave the ship and are never heard from again. They know that the cruise line cannot afford to chase every deadbeat who sails with them.

This is why cruise lines place holds on credit cards - trying to minimize financial losses.

You are probably aware that every cruise ship operation has an onboard revenue budget. The mass market lines tend to average onboard revenue goals around $60 per passenger, per day. The credit card holds they place on your card reflect the average daily spend they expect.

 

I don't dispute what you're saying but would like to know where you get this info. TIA

[GeezerCouple]

3 hours ago, Donald said:

On Day 5 or 6, the Purser suspends the accounts of those who failed to provide payment. But it is too late. These passengers were just playing the game. They already charged everything they needed for the cruise.

 

Do they *really* wait until "Day 5 or 6" to suspend accounts of those who were "on ship deadbeats" from the start, or almost so?

 

I thought that even for "regular pax" (not those likely to be deadbeats) if their pre-authorization limit was reached, they'd ask them to make other arrangements or not be able to charge on the ship.  That is, add a different charge card, pre-pay with cash, etc.  Paying off the currently-over-used card may take some time to get posted, which could mean the pax don't get access to on-ship charging for a while more, although that is another solution if there is much of the cruise remaining.

 

GC

[Donald]

1 hour ago, GeezerCouple said:

 

Do they *really* wait until "Day 5 or 6" to suspend accounts of those who were "on ship deadbeats" from the start, or almost so?

 

I thought that even for "regular pax" (not those likely to be deadbeats) if their pre-authorization limit was reached, they'd ask them to make other arrangements or not be able to charge on the ship.  That is, add a different charge card, pre-pay with cash, etc.  Paying off the currently-over-used card may take some time to get posted, which could mean the pax don't get access to on-ship charging for a while more, although that is another solution if there is much of the cruise remaining.

 

GC

In most cases, they really do wait until day 5 or 6. There is always a chance that the pax who have not yet given an alternative form of payment actually can afford to be there, but have just been too busy or too slow. The revenue departments at the big mass market lines want to give every pax a good opportunity to charge things onboard and then find a way to pay for it.

[Donald]

2 hours ago, clo said:

I don't dispute what you're saying but would like to know where you get this info. TIA

I have managed cruise ships for decades. When it was big mass market ships, I had to deal with these problems every day.

[Donald]

2 hours ago, ontheweb said:

I realize they cannot "throw them in the brig" as there are no more debtor's prisons, but can they hold their luggage as collateral the same way a mechanic could hold your car until payment?

Not legal - and definitely not good PR.

[Mary229]

2 hours ago, GeezerCouple said:

 

Do they *really* wait until "Day 5 or 6" to suspend accounts of those who were "on ship deadbeats" from the start, or almost so?

 

I thought that even for "regular pax" (not those likely to be deadbeats) if their pre-authorization limit was reached, they'd ask them to make other arrangements or not be able to charge on the ship.  That is, add a different charge card, pre-pay with cash, etc.  Paying off the currently-over-used card may take some time to get posted, which could mean the pax don't get access to on-ship charging for a while more, although that is another solution if there is much of the cruise remaining.

 

GC

I agree. On my last cruises there was a daily accounting and a new hold when you reached the level.  Of course it still wasn’t a charge .  It should be fairly easy to check before boarding 

[ontheweb]

3 hours ago, Donald said:

Not legal - and definitely not good PR.

Are you sure it is not legal? I thought I once read posts by @chengkp75 that said they could not stop a passenger from leaving, but could hold the baggage. Though that might have been in reference to leaving the ship at an earlier port than the last scheduled one.

[clo]

4 hours ago, Donald said:

I have managed cruise ships for decades. When it was big mass market ships, I had to deal with these problems every day.

I'm not remotely naive but that's simply incredible. I told the story to my husband and he just kept shaking his head. Thanks for sharing.

[jsn55]

Seems quite obvious to me that a ship should not extend charging privileges at all to someone who doesn't cooperate with the rules.  Right from the minute they board and can't produce a valid card, they should not be allowed to drink and spend on extras.  They should be informed immediately that they cannot charge anything to their cabin until the problem is solved, not six days later.  At least the ship won't be absorbing the no-doubt flagrant purchases of the deadbeats.  The cruise itself is already paid for, so let pax deal with the problem they've caused.  But if the cruiseline is that sensitive to 'criticism and social media', their method of handling these deadbeats is certainly the ship's choice.  We need more 'follow the rules or face the punishment' these days.  

[John Bull]

8 hours ago, jsn55 said:

  But if the cruiseline is that sensitive to 'criticism and social media', their method of handling these deadbeats is certainly the ship's choice.  We need more 'follow the rules or face the punishment' these days.  

 

Yep, Joe Public is going to have more respect for a cruise line that is firm with free-loaders than one which allows them to freely enjoy the things that the rest of us pay for.

 

JB 🙂

[ontheweb]

10 hours ago, jsn55 said:

Seems quite obvious to me that a ship should not extend charging privileges at all to someone who doesn't cooperate with the rules.  Right from the minute they board and can't produce a valid card, they should not be allowed to drink and spend on extras.  They should be informed immediately that they cannot charge anything to their cabin until the problem is solved, not six days later.  At least the ship won't be absorbing the no-doubt flagrant purchases of the deadbeats.  The cruise itself is already paid for, so let pax deal with the problem they've caused.  But if the cruiseline is that sensitive to 'criticism and social media', their method of handling these deadbeats is certainly the ship's choice.  We need more 'follow the rules or face the punishment' these days.  

I tend to agree, but to be a contrarian, let me try to look at it from their point of view. They are hoping to get paid eventually, which is why they get a promissory note signed. And I would imagine that there are at least a few on the 6th day that do come up with a working card. The cruise lines do need the onboard spending to make a profit.

[Donald]

1 hour ago, ontheweb said:

I tend to agree, but to be a contrarian, let me try to look at it from their point of view. They are hoping to get paid eventually, which is why they get a promissory note signed. And I would imagine that there are at least a few on the 6th day that do come up with a working card. The cruise lines do need the onboard spending to make a profit.

This is the winning answer.

I agree completely that pax who fail to give a legitimate means of payment should not be allowed to make charge purchases.

But the mass market cruise lines see it differently.

 

Generally, a mass market ship makes zero profit selling a cruise to you. They only make money when you buy things onboard. If they prevent you charging purchases onboard, they have zero chance of making any profit from your cruise.

If you are a credit risk and buy things onboard, they still have a chance to be paid by you at some point. If they do not get paid, they simply raise the price of things onboard, and everyone else ends up paying for it anyway.

Have you ever wondered why Photos, Spa, Shops, and Tours are so expensive on mass market ships? This situation is one of the contributing factors.