I recently noticed on my bank statement that my hairdresser charged 20% more than my bill. When I called I was told by the receptionist that some credit card companies do that to make sure that there is enough funds in the account to cover the charge, and once the funds are transferred the additional 30% would be released. When I called my bank, they told me that they don't do that, the business where I used my card did it. Who's lying? I want to know if I need to find a new hairdresser or a new bank. I have the 20% back, but no one should have the right to put a hold on my money without notifying me. Thanks!
2006-12-04 11:48:13 · 13 answers · asked by help me help you help me 1 in Business & Finance ➔ Credit
AS FAR AS I KNOW, the credit card VENDOR, NOT the credit card company itself or the hairstylist either one, but the third party vendor your hair stylist uses is actually doing this. So they could in theory both be telling the truth. When the hair dresser signed up to accept credit cards, she actually signed up with a vendor other than the credit card company direct. Every time you use your charge card at this hairdresser, or any where, this credit card vendor will place a hold of some amount. This varies, based on several factors. For instance, when you use your credit card at a pay-at-the-pump gas station, it usually places a hold of $1 (sometimes none at all). However, if you fueled up, then went in and payed for it at the counter, then there would usually be a hold placed on your credit card equal to the dollar amount of gas you put in. Once again, this is most of the time, but not always. There are many variables here.
Once I had a vendor place a hold on my account of several hundred dollars when I called in and placed a phone order. Then they turned around and charged the card for that same amount at the counter when I picked it up, so in effect I had double the dollar hold from the same vendor. When I went to use my card later in the day, it was refused, and I had to use a different one.
2006-12-04 12:26:28 · answer #1 · answered by Just Me 1 · 0⤊ 1⤋
First of all it's just an authorization not a charge. You pay no interest on authorizations just charges. Authorizations typically fall off in 7 days or when the sales draft arrives at the bank. That's when the authorization turns to a charge. Your hairdresser is most likely authorizing a higher amount before you get your hair done to be sure they cover all the services you request. Ask your hairdresser to charge you when the service is done rather than before.
2006-12-04 14:29:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
To my knowledge, gas stations put a hold (also known as pre-authorization) up to $75.00 when you first swipe the card. This action does tie up your available credit for three days or so, then the remaining balance of that pre-authorization amount is returned to your account when the credit card processes the transaction. This insures the gas company there is enough credit available to pay for your gas purchase. Also, some debit cards act in the same way. In addition, the only other industry that uses this method is the hotel industry. To the hair dressers defense, maybe she has been taken (i.e. lost a lot of money in the past) and does pre-authorization to insure he/she will get paid. However, this should be clearly posted and/or they should verbally inform you of this policy in advanced. Your hairdresser is either lying to you or is unaware how their credit card system is set up (if it is a Franchise type business).
2006-12-04 12:35:49 · answer #3 · answered by Jeffrey 7 · 1⤊ 0⤋
A 'hold' is placed by the business when they don't know the total bill in advance. As you have been told Hotels are the type of business that does this most. 'Pay at the Pump' gas stations do as well, but they usually place a $1.00 hold. I don't see why a hairdresser would need to use a hold.
2006-12-04 12:02:05 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
Cards do this any time you can write in a tip. That way they know you can pay for the service and the service charge. I do believe this practice varies state by state. Allot of bars and restaurants do this, In Florida a bar had a hold on my account for 200. When ever business give employees cash tips they like to make sure there in actual money in the account before they do the batch repoprt at the end of the night ( that is were they run all the criedit cards for the full amount service plus tip).
My advice alwas pay in cash for services you are acpetied to tip for.
2006-12-04 13:34:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The banks don't do this, the business does. Some gas stations even do this when use your card to pay for gas.
I'd find a new hairdresser.
2006-12-04 12:04:08 · answer #6 · answered by kelly h 3 · 0⤊ 0⤋
That is weird. I believe it is the hairdresser. I have heard of hotels doing this just in case a customer runs the bill up, but never heard of a hairdresser doing this, it was probably just a fluke. But from now on I'd pay her in cash.
2006-12-04 11:52:05 · answer #7 · answered by FormatLife 3 · 1⤊ 0⤋
Get a new hairdresser. They are only supposed to charge what you sign for.
2006-12-04 11:50:48 · answer #8 · answered by . 6 · 1⤊ 0⤋
yes it is a fairly common practice... so watch out when using debit cards that work as credit cards... gas stations, motels, some fast food places, and apparently your hairdresser all do holds....
2006-12-04 11:50:52 · answer #9 · answered by myheartisjames 5 · 0⤊ 0⤋
The businesses do that. Hotels do it mostly, and I've never heard of a hair stylist doing that. It's basically making sure you can pay.
2006-12-04 11:50:48 · answer #10 · answered by FaZizzle 7 · 1⤊ 0⤋