Electronic Finances Can Leave You Broke
Sarana Schell reports for the Anchorage Daily News on merchant card authorization practices and how authorizing larger amounts can affect a cardholder's availability of funds.
Every time a customer buys something with a credit card, or a debit card using a signature rather than a PIN, the seller's electronic system sends a request for money to be set aside. Set-asides, known as pre-authorizations, usually don't last long enough to cause customers problems. But people near their limit may find themselves stuck before they've really run out of money.
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