topic Re: Pending charge and statement in Credit Cards

Pending charge and statement

Anonymous — Sat, 05 Aug 2017 17:50:56 GMT

Hello, I created and account to ask this here figuring it's the best place to find the answer without having to contact the credit card company. (Capital One).

I currently have a deposit hold pending with Enterprise in the amount of $200, and that $200 maxes out my credit line completely with like 3 cents to spare. (I know, I need to pay down my balance!)

Now, it's Saturday so nothing will clear till at least Monday, and Monday is the 7th when coincidentally, the new statement cycle comes out. So i'm wondering how this works. Will the $200 pending be counted as a charge or not because if so, then i'm concerned i'll be hit with an overlimit fee.

But on the other hand, it's not really a charge, but a hold, so it shouldn't count as a charge and I don't THINK i'll get hit with that fee. So i'm just confused how this all works. It's just lousy timing that I rented so close to my statement cycle and while so close to the max!

I hope I explained this all correctly. I've had 100% on time payments for over 2 years, never late on anything and working to rebuild my credit after Bankruptcy in 2015, so the last thing I want is an Overlimit fee! I'm at 621 credit score and trying hard to get up to 700 and don't want any "dings".

Any help is appreciated!!!

Re: Pending charge and statement

bz386 — Sat, 05 Aug 2017 18:39:50 GMT

There is no such thing as an over limit fee. Also, a hold will remain a hold even if a statement cuts.

Re: Pending charge and statement

Anonymous — Sat, 05 Aug 2017 18:59:05 GMT

bz386 wrote:

There is no such thing as an over limit fee. Also, a hold will remain a hold even if a statement cuts.

Yes there is such thing as an over limit fee. To the second part of your reply, if it's considered a just hold, then the $200 will not be applied when computing the interest as well?

Re: Pending charge and statement

CreditInspired — Sat, 05 Aug 2017 19:16:31 GMT

+1 Chris
There is indeed such a thing as an Over the Limit Fee on some CCs.

Re: Pending charge and statement

Anonymous — Sat, 05 Aug 2017 19:38:58 GMT

@CreditInspired wrote:
+1 Chris
There is indeed such a thing as an Over the Limit Fee on some CCs.

Thank you. I was astounded by the ignorance of that statement, especially here where I thought you guys were the experts on all things credit card related! Maybe I should just wait it out till Monday and see what happens when the statement releases.

Re: Pending charge and statement

HeavenOhio — Sat, 05 Aug 2017 19:39:12 GMT

I don't think the hold is going to matter unless Enterprise actually claims its money. If it's simply a deposit, I don't think they'll need to do that.

You can't be charged an over-the-limit fee unless you agree to one. The law is written that way in order for card companies to offer the option of going a bit over one's limit rather than having a charge denied. Most companies don't bother with this and simply allow customers to exceed their limits by a small amount before starting to deny transactions. Capital One is among those companies.

So I think the worst case scenario in this case is that your statement will cut with the card maxed out. But I think what'll actually play out is that nothing bad will happen.

Re: Pending charge and statement

Kforce — Sat, 05 Aug 2017 19:51:32 GMT

If your math is correct, 3 cents to spare, you have no need to worry about over-limit fee.

Most CC's put a 3 business day hold on charges before posting to account.

I have seen pending charges post 1 day early, 2- days if they fall on the statement cut date.

(Citi, Barclay Card), however most wait a full 3-days (FNBO, All my CU Cards, BofW, US-Bank)

* Have no Capital One card for reference * Worst case;

If you made the purchase on Friday you are on the fence if the statement cuts Monday (2-days),

If you made the purchase Saturday you are safe.

3 out of 4 cc companies you are safe (3-day holds)

Re: Pending charge and statement

Anonymous — Sat, 05 Aug 2017 20:02:33 GMT

@HeavenOhio wrote:
I don't think the hold is going to matter unless Enterprise actually claims its money. If it's simply a deposit, I don't think they'll need to do that.

You can't be charged an over-the-limit fee unless you agree to one. The law is written that way in order for card companies to offer the option of going a bit over one's limit rather than having a charge denied. Most companies don't bother with this and simply allow customers to exceed their limits by a small amount before starting to deny transactions. Capital One is among those companies.

So I think the worst case scenario in this case is that your statement will cut with the card maxed out. But I think what'll actually play out is that nothing bad will happen.

Thanks for the well informed reply. Even if Enterprise did claim it as money, I factored in the complete pricing $28.99 rental + the $200 hold deposit to still be under my total credit limit, (hence the 3 cents currently showing as "available") So technically, i'm not over my limit with any charges OR pending holds.

It's the interest that will be computed on Monday that will push it over the limit so I but I think from your reply, I can gather that it won't because holds aren't counted as chargable interest and I should be fine. Thanks again.

I found out just yesterday that Alamo doesn't charge a hold deposit and they only hold cost of the rental, and since I rent a car once a month for errands, i'll just switch to them from now on and not let my credit line be held hostage to these companies.

Re: Pending charge and statement

Anonymous — Sat, 05 Aug 2017 20:04:23 GMT

@Anonymous wrote:
@CreditInspired wrote:
+1 Chris
There is indeed such a thing as an Over the Limit Fee on some CCs.
Thank you. I was astounded by the ignorance of that statement, especially here where I thought you guys were the experts on all things credit card related! Maybe I should just wait it out till Monday and see what happens when the statement releases.

Well he's partially right. Over the limit fees can only be charged if you agree ahead of time. Unless you have proactively opted in ahead of time to allow Capital One to process charges that exceed your limit, then you can not be charged a fee. The laws were changed by the Credit Card Act so very few over limit fees have been assessed since 2010.

Re: Pending charge and statement

Anonymous — Sat, 05 Aug 2017 20:36:53 GMT

@Anonymous wrote:
@Anonymous wrote:
@CreditInspired wrote:
+1 Chris
There is indeed such a thing as an Over the Limit Fee on some CCs.
Thank you. I was astounded by the ignorance of that statement, especially here where I thought you guys were the experts on all things credit card related! Maybe I should just wait it out till Monday and see what happens when the statement releases.
Well he's partially right. Over the limit fees can only be charged if you agree ahead of time. Unless you have proactively opted in ahead of time to allow Capital One to process charges that exceed your limit, then you can not be charged a fee. The laws were changed by the Credit Card Act so very few over limit fees have been assessed since 2010.

Thank you for elaborating. I just did some Googling and learned a little more about it. I wish the other person would have explained it like this rather than making a blanket statement like "There's no such thing as an over the limit fee". In any case, I think i'll be fine and there should be no extra fees accessed. Since the bankruptcy 2 years ago, i've been extremely diligent about ensuring everything stays within limits and everything paid on time and don't want to do anything to rock the boat this time.

Re: Pending charge and statement

Anonymous — Sat, 05 Aug 2017 22:27:31 GMT

1) A 'fee' "can" be charged for just about anything as long as some disclosure technicality has been met, period!
Some companies have a 'fee' to increase your CL, to pay your bill by phone and you can darn well bet there exist 'such' a thing as over the limit, just like over drawing one's bank account... it's a huge red flag that companies, especially in this tier want to strongly discourage.

2) FYI for the OP in general I would NOT be using a toy limit rebuilder card as the 'hold' card for a auto rental joint.
They are brutal and notorious when it comes to banging cards over and above the auth amount (which is obviously a sensitive area and NOT something you want to deal with, with an already dicey CL)
These companies swipe and swipe and swipe bang though charges gas, damages, car brought back late etc
Too many nightmares not to say something, friend
Seen plenty of ppl get over the limit due to rental car nonsense and even if it's 'cleared' up weeks or months later the damage to your account has been done

That's a chance you just can't take with a low limit card you're using to rebuild.....

A person with a 5-10-15k limit will be annoyed but generally won't affect their credit rebuild or ruin a baby card as it's trying to grow

Please don't use baby rebuilders at auto rental and it's best to pay at the counter if you're using to get gas, because at the pump it's just an auth which may be a longer hold than one guessed + some institutions hold $100 (USAA) ( cause they can't tell if you have a motorcycle or a huge SUV you're filling)

If you go inside it's an immediate charge of $25 no holds/no auth you made a specific purchase....
Be careful folks

Re: Pending charge and statement

mitchblue — Sat, 05 Aug 2017 22:36:48 GMT

@Anonymous wrote:
@CreditInspired wrote:
+1 Chris
There is indeed such a thing as an Over the Limit Fee on some CCs.
Thank you. I was astounded by the ignorance of that statement, especially here where I thought you guys were the experts on all things credit card related! Maybe I should just wait it out till Monday and see what happens when the statement releases.

This is a great place to be to learn about credit, and scores etc - so much info. But we don't know everything and at times a mistake will be made, No need to cut into another user. They're only trying to help.

Re: Pending charge and statement

Anonymous — Sun, 06 Aug 2017 03:33:44 GMT

@Anonymous wrote:
1) A 'fee' "can" be charged for just about anything as long as some disclosure technicality has been met, period!
Some companies have a 'fee' to increase your CL, to pay your bill by phone and you can darn well bet there exist 'such' a thing as over the limit, just like over drawing one's bank account... it's a huge red flag that companies, especially in this tier want to strongly discourage.

2) FYI for the OP in general I would NOT be using a toy limit rebuilder card as the 'hold' card for a auto rental joint.
They are brutal and notorious when it comes to banging cards over and above the auth amount (which is obviously a sensitive area and NOT something you want to deal with, with an already dicey CL)
These companies swipe and swipe and swipe bang though charges gas, damages, car brought back late etc
Too many nightmares not to say something, friend
Seen plenty of ppl get over the limit due to rental car nonsense and even if it's 'cleared' up weeks or months later the damage to your account has been done

That's a chance you just can't take with a low limit card you're using to rebuild.....

A person with a 5-10-15k limit will be annoyed but generally won't affect their credit rebuild or ruin a baby card as it's trying to grow

Please don't use baby rebuilders at auto rental and it's best to pay at the counter if you're using to get gas, because at the pump it's just an auth which may be a longer hold than one guessed + some institutions hold $100 (USAA) ( cause they can't tell if you have a motorcycle or a huge SUV you're filling)

If you go inside it's an immediate charge of $25 no holds/no auth you made a specific purchase....
Be careful folks

Thanks for the advice. This is the last time i'm using Enterprise anyway because I don't agree with these absurd holds. I say absurd because if I steal or total the car, is that $200 hold really going to help them any?! No. And same with the gas stations that needlessly hold funds. I only fill up at stations I know don't do it. It's all shady practice imo.

Re: Pending charge and statement

Anonymous — Sun, 06 Aug 2017 03:38:12 GMT

@mitchblue wrote:
@Anonymous wrote:
@CreditInspired wrote:
+1 Chris
There is indeed such a thing as an Over the Limit Fee on some CCs.
Thank you. I was astounded by the ignorance of that statement, especially here where I thought you guys were the experts on all things credit card related! Maybe I should just wait it out till Monday and see what happens when the statement releases.
This is a great place to be to learn about credit, and scores etc - so much info. But we don't know everything and at times a mistake will be made, No need to cut into another user. They're only trying to help.

I cut into no one and for that matter, you're now cutting into me for cutting into them. Nice. Had the other person worded their statement like "I could be wrong, but I don't think there's such a thing as an overlimit fee.", that would've been fine. But to factually state 100% it doesn't exist on an advice forum when it does is irresponsible.

Re: Pending charge and statement

Anonymous — Sun, 06 Aug 2017 05:51:59 GMT

@Anonymous wrote:
@Anonymous wrote:
1) A 'fee' "can" be charged for just about anything as long as some disclosure technicality has been met, period!
Some companies have a 'fee' to increase your CL, to pay your bill by phone and you can darn well bet there exist 'such' a thing as over the limit, just like over drawing one's bank account... it's a huge red flag that companies, especially in this tier want to strongly discourage.

2) FYI for the OP in general I would NOT be using a toy limit rebuilder card as the 'hold' card for a auto rental joint.
They are brutal and notorious when it comes to banging cards over and above the auth amount (which is obviously a sensitive area and NOT something you want to deal with, with an already dicey CL)
These companies swipe and swipe and swipe bang though charges gas, damages, car brought back late etc
Too many nightmares not to say something, friend
Seen plenty of ppl get over the limit due to rental car nonsense and even if it's 'cleared' up weeks or months later the damage to your account has been done

That's a chance you just can't take with a low limit card you're using to rebuild.....

A person with a 5-10-15k limit will be annoyed but generally won't affect their credit rebuild or ruin a baby card as it's trying to grow

Please don't use baby rebuilders at auto rental and it's best to pay at the counter if you're using to get gas, because at the pump it's just an auth which may be a longer hold than one guessed + some institutions hold $100 (USAA) ( cause they can't tell if you have a motorcycle or a huge SUV you're filling)

If you go inside it's an immediate charge of $25 no holds/no auth you made a specific purchase....
Be careful folks
Thanks for the advice. This is the last time i'm using Enterprise anyway because I don't agree with these absurd holds. I say absurd because if I steal or total the car, is that $200 hold really going to help them any?! No. And same with the gas stations that needlessly hold funds. I only fill up at stations I know don't do it. It's all shady practice imo.

I rent plenty of vehicles throughout the year for work and a hold is just that-a hold. It's there to ensure you have funds to clear the anticipated charges, plus a little (usually). Because your rental is already complete then you only have to worry about the final amount clearing and the hold will disappear. I've had pending charges present during many statement cuts and have never seen them present as they hadn't cleared.

Sometimes the similar things happen with hotels. Because of work I get stuck having to put two cards on hotels often: one for the room (company card) and one for incidentals (personal card). Occasionally I'll catch one of the hotels messing it up and see a room charge as pending on my personal card. All of my personal cards have a $500 limit that, when exceeded, will prompt an alert to my phone. Once I get the alert I simply go clear it up with the front desk and within a few days the pending charge simply disappears without ever posting or showing up on the statement

Re: Pending charge and statement

Anonymous — Sun, 06 Aug 2017 15:05:23 GMT

@Anonymous wrote:

@Anonymous wrote:
@Anonymous wrote:
1) A 'fee' "can" be charged for just about anything as long as some disclosure technicality has been met, period!
Some companies have a 'fee' to increase your CL, to pay your bill by phone and you can darn well bet there exist 'such' a thing as over the limit, just like over drawing one's bank account... it's a huge red flag that companies, especially in this tier want to strongly discourage.

2) FYI for the OP in general I would NOT be using a toy limit rebuilder card as the 'hold' card for a auto rental joint.
They are brutal and notorious when it comes to banging cards over and above the auth amount (which is obviously a sensitive area and NOT something you want to deal with, with an already dicey CL)
These companies swipe and swipe and swipe bang though charges gas, damages, car brought back late etc
Too many nightmares not to say something, friend
Seen plenty of ppl get over the limit due to rental car nonsense and even if it's 'cleared' up weeks or months later the damage to your account has been done

That's a chance you just can't take with a low limit card you're using to rebuild.....

A person with a 5-10-15k limit will be annoyed but generally won't affect their credit rebuild or ruin a baby card as it's trying to grow

Please don't use baby rebuilders at auto rental and it's best to pay at the counter if you're using to get gas, because at the pump it's just an auth which may be a longer hold than one guessed + some institutions hold $100 (USAA) ( cause they can't tell if you have a motorcycle or a huge SUV you're filling)

If you go inside it's an immediate charge of $25 no holds/no auth you made a specific purchase....
Be careful folks
Thanks for the advice. This is the last time i'm using Enterprise anyway because I don't agree with these absurd holds. I say absurd because if I steal or total the car, is that $200 hold really going to help them any?! No. And same with the gas stations that needlessly hold funds. I only fill up at stations I know don't do it. It's all shady practice imo.
I rent plenty of vehicles throughout the year for work and a hold is just that-a hold. It's there to ensure you have funds to clear the anticipated charges, plus a little (usually). Because your rental is already complete then you only have to worry about the final amount clearing and the hold will disappear. I've had pending charges present during many statement cuts and have never seen them present as they hadn't cleared.

Sometimes the similar things happen with hotels. Because of work I get stuck having to put two cards on hotels often: one for the room (company card) and one for incidentals (personal card). Occasionally I'll catch one of the hotels messing it up and see a room charge as pending on my personal card. All of my personal cards have a $500 limit that, when exceeded, will prompt an alert to my phone. Once I get the alert I simply go clear it up with the front desk and within a few days the pending charge simply disappears without ever posting or showing up on the statement
.

The $200 hold cleared! I'm shocked because it's Sunday morning and I thought nothing happens on the weekends. But in any case, it's now a non issue because the statement isn't going to cut until tonorrow and i'm now $200 under the limit. Whew!!These holds can be hard when you're re-building credit and only have low limit cards like $500. Regarding the hotels, i've been lucky with some that since I try to prepay before arrival and when I see them start to swipe the card, I stop them and ask very nicely if they can waive the hold deposit and just block everything in the room like movies, room service etc. Sometimes they do and other times they don't. But it never hurts to ask.
Anyways, thanks all for the advice and help. I can breathe easy now and keep my perfect 2 year credit record. Since discharge, i've been dilligent and watching everything like a hawk to successfully rebuild and don't want to make even the slightest mistakes this time around.

Re: Pending charge and statement

Anonymous — Sun, 06 Aug 2017 15:23:10 GMT

Just an update to say the $200 hold cleared this morning! I didn't think anything happened on Sunday but all's well now and no worries about being over the limit. Whew. Thanks all for the help and advice!!

Re: Pending charge and statement

MrDisco99 — Sun, 06 Aug 2017 15:37:20 GMT

FYI this is pretty standard practice among car rental agencies. You're not going to get away from it by ditching Enterprise.

Just keep that in mind next time you rent that you need to have some room on your card for the hold and that it will go away in a few days if they don't actually charge you. Also, a hold will not affect your balance if your statement cuts while it's in effect.

Re: Pending charge and statement

Anonymous — Sun, 06 Aug 2017 15:44:01 GMT

@MrDisco99 wrote:
FYI this is pretty standard practice among car rental agencies. You're not going to get away from it by ditching Enterprise.

Just keep that in mind next time you rent that you need to have some room on your card for the hold and that it will go away in a few days if they don't actually charge you. Also, a hold will not affect your balance if your statement cuts while it's in effect.

I read on Alamo's website the only hold they place of the cost of the rental. No extra deposit hold, so i'm going to try them and if I find it's true, then i'll stick with them from now on. You're right, there's no escaping these holds but if/when I find places that don't do it, they'll have a loyal customer in me. Their prices are lower too so that's a plus.

Thanks for the advice regarding the holds and statement cuts. I'll keep this in mind for the future. It's good to know it doesn't count as "charges" when they compute the new statement.