What does Blocking means?

When you try to use your credit or debit card during a shopping or paying for something the seller usually contacts the company that issued your card to give an estimated total.If the transaction is approved by your company the balance in your bank account is reduced by this amount.
That’s called ‘BLOCK‘.Some companies also call this placing a “hold” on those amounts.

Why Blocking Can Be a Problem

If you’re nowhere near your credit limit or don’t have a low balance in your bank account, blocking (holding) probably won’t be a problem.
But if you get that point,you should be careful. Not only can it be embarrassing to have your card declined, it also can be inconvenient, especially if you have an emergency purchase and insufficient credit or money in your bank account.

How to Avoid Blocking

Consider paying for some shopping or other “blocked” bills with the same credit or debit card you used at the beginning of the transaction. Ask the clerk when the prior block will be removed.

Ask your current debit card issuer if they permit blocks, for how long, and from what types of merchants. If they do, you may want to consider getting an overdraft line of credit from your bank.

Tags:  Blocking credit card debit card estimate total holding pay payment reduce transaction