Credit Card Glossary
Blocking
Blocking is the name for a procedure by which a hold is put on a certain amount of your credit card’s limit to cover anticipated expenses. For instance when you rent a car and the clerk runs your card through the machine a block might be put on your card for an amount equal to not just the cost of the car for the amount of time you might try it. You might also have a block for the equal amount of other anticipated expenses such as the cost of mileage and gas.
Another common situation where blocking occurs is when you book a hotel. You are not only billed for the cost of the room but also the anticipated expenses such as your food bill and mini bar bill.
There is nothing illegal about blocking but there is a way it can affect you and cost you more money. For instance if you pay your bill with the same credit card that received the blocked amount the actual charges will replace the blocked amount in a day or two leaving room on your card again. However if you pay using a different credit card the block may stay on your card and reduce your available credit on that card for as long as fifteen days after you have settled with the hotel or car rental company. The reason for the delay is because the original credit card company is not aware that the final bill has been paid.
Of course one of the disadvantages of having your card blocked to anticipate expenses is that if your card is close to the limit when this happens they you may find yourself denied the use of your credit card for other things you would like to charge on it.