Credit VS Debit Card

Another question from the nervous nelly..

Is it best we take a debit card or the credit card?

Nelly's fear is we'll blow through the credit limit in no time at all (not something I can see happening) Are we able to have a predetermined credit limit?

Or if we put the debit card on the account do they preauthorise a certain amount?

Another question from the nervous nelly..

 

Is it best we take a debit card or the credit card?

 

Nelly's fear is we'll blow through the credit limit in no time at all (not something I can see happening) Are we able to have a predetermined credit limit?

 

Or if we put the debit card on the account do they preauthorise a certain amount?

Credit card is usually the best . With debit they usually a pre authorization of any amount based on the number of passengers and length of cruise.

Pre authorization aren't taken off the bank account for a period of time based on bank policy.

I find the best is to pre pay everything can and then buy Onboard credit for what expected expenses will be. Use the CC for amounts over the above. My bill for incidentals on a 14 day cruise is usually about $500 . The final amount on my credit card would be a credit of $50 to a debit of $100 . We don't drink very much , don't use the spa , no extra cost restaurants and very rarely take excursions.

For us the ship is the holiday and rest , not the ports.

Use a Credit Card. Tie up someone else's money.

At the end of your cruise, before you leave the ship, go to guest services and settle up with either cash or your debit card. Or go home and pay off your CC with the funds in your debit card account.

Also, think of this...

You or your partner has a health problem onboard...cold, flu, etc. You visit the infirmary, see the Dr and receive meds.

The ship will bill you for this. Let's say it amounts to $300.

You didn't budget for that and it's all you have in your debit card account.

Leaving the ship with a $0. balance in your checking (debit) account is not a happy feeling.

Hence...use a credit card and pay off that extra $300. over a couple of months.

We used a debit card which sadly proved to be a headache for us on our cruise returning 3rd December this year. During our cruise we found not a one dollar test transaction but a large number of pre-authorised transactions on our account made throughout the 28 day cruise which although did not get charged until the end of the cruise with Barclays, it did show as money out . Technically this money had yet to be taken but was shown on our on line bank account as money out of the account. This led to fraud worries as we had not been aware of these practises and could not easily establish the originator of all these transactions whilst we were at sea.

When our on board account was presented and paid in full as normal on our return we then had to ask our bank to return the last 2 weeks of rolling duplicate pre authorised transactions which still showed as further money out as the last of these wouldn't be purged off our account until 17th December. What lovely Cunard cruises we had this year but this sort of thing we really could have done without!

What they do is every day they put a hold on your card for the amount you have spent that day. So on a 28 day cruise they would put 28 separate holds on your credit or debit card. Then they finally charge your card again with the final amount in the normal way. But those holds take maybe 2 or 3 weeks to be removed, so your available credit limit/bank balance is reduced for that period.

Contrast and compare what a hotel did last Christmas when we were away: When we checked in they took a hold of €300. When we checked out, the bill was €400. So they asked if I wanted that as a new transaction of €400, or did I want 2 separate charges, one for the original €300 and a separate one for €100 ? They said they could just convert the original hold to an actual transaction and it would mean I would not have to wait for the hold to be removed. I took that option.

So it's perfectly possible for Cunard to do the same, but I suspect it's easier for them to cancel the 28 separate holds and submit a single transaction instead. When I say "easier for them" I do of course mean "it's too much like hard for them".

I'm just thinking out loud here, but it seems if the bank has been taking holds all along it doesn't improve the chances that another $1000 (or so) will be there once they've taken the first $1000 (or so). It seems it would actually reduce the odds, since they've tied up that much.

The logical process would be always to convert the hold to a charge since they've been setting it aside for their use anyway. The problem with releasing a hold would only be with the amount that they've held in excess of what becomes the actual charge.

But what do I know.

I'm just thinking out loud here, but it seems if the bank has been taking holds all along it doesn't improve the chances that another $1000 (or so) will be there once they've taken the first $1000 (or so). It seems it would actually reduce the odds, since they've tied up that much.

If they came to take the final amount at the end and it was rejected due to you having insufficient funds then they would activate the holds and get their money that way instead - that's the point of the holds.

I've read that the cruise lines/hotels etc blame the banks for the time it takes to remove the holds, i.e. they did it straight away and the banks drag their feet.

 

I find the best is to pre pay everything can and then buy Onboard credit for what expected expenses will be.

That is a very sensible suggestion, can you give more details on how and what you can pre-pay?

If they came to take the final amount at the end and it was rejected due to you having insufficient funds then they would activate the holds and get their money that way instead - that's the point of the holds.

 

I've read that the cruise lines/hotels etc blame the banks for the time it takes to remove the holds, i.e. they did it straight away and the banks drag their feet.

The process described guarantees that approximately twice the onboard spend is encumbered, half of it unnecessarily.

So it would seem to be risker for the line in addition to surely being inconvenient for the passenger.

At the end of the day I wonder whether it's really their (intended) process. Why set a hold if the final transaction involves an additional request for funds?

More thoughts.

Assume a passenger registers a debit card at the beginning of the Voyage and at the end settles with cash. It will take several days for the original debit card hold to clear at the bank during which time the passenger does not have access to the money. But that's not due to a double charge by the line.

Which reminds me it's time for my annual $10 donation to Wikipedia:

https://en.m.wikipedia.org/wiki/Authorization_hold

If they just activated the holds already taken there wouldn't be insufficient funds, as evidenced by their being able to set the hold in the first place.

 

The process described guarantees that approximately twice the onboard spend is encumbered, half of it unnecessarily.

 

So it would seem to be risker for the line in addition to surely being inconvenient for the passenger.

 

At the end of the day I wonder whether it's really their (intended) process. Why set a hold if the final transaction involves an additional request for funds?

That's the process I described above at a hotel for me last Christmas - i.e. they just activated the holds and then had one final payment from me for the difference between the original hold and what I'd actually spent.

If they can do it then why can't the cruise companies ? As I say, they only real conclusion is that it's too much effort for them.

More thoughts.

 

Assume a passenger registers a debit card at the beginning of the Voyage and at the end settles with cash. It will take several days for the original debit card hold to clear at the bank during which time the passenger does not have access to the money. But that's not due to a double charge by the line.

You are correct. It's the bank that's causing the delay.

On your other point about activating the holds; if they did that then the customer would then see a debit each day on their card statement as opposed to one final figure just being shown. That would cause all sorts of problems I reckon - can you imagine someone seeing say 7, 14 or even 28 separate transactions ? So showing just the final amount is best. But the downside is of course said holds taking ages to be removed.

But really it should not be much of a worry I don't think anyway. Taking myself as an example, on our last 3 14 day cruises our on-board spend was about $2500 ( £1650 ). So if you double that, $5000 ( £3700 ), that's not a high limit anyway, so would it that many people a problem anyway ?

 

And there's the key - $5,000 should be a available credit for credit cards. But for debit cards/checking accounts could be a sum high than most people want to risk playing with holds/authorizations/3 week delays.

 

TL/DR - Leave Credit Card for incidentals. Settle final as you wish.

Thanks to all for that input.

You are correct. It's the bank that's causing the delay.

 

On your other point about activating the holds; if they did that then the customer would then see a debit each day on their card statement as opposed to one final figure just being shown. That would cause all sorts of problems I reckon - can you imagine someone seeing say 7, 14 or even 28 separate transactions ? So showing just the final amount is best. But the downside is of course said holds taking ages to be removed.

 

But really it should not be much of a worry I don't think anyway. Taking myself as an example, on our last 3 14 day cruises our on-board spend was about $2500 ( £1650 ). So if you double that, $5000 ( £3700 ), that's not a high limit anyway, so would it that many people a problem anyway ?

TOTH That was how it appeared, the separate pre payment transactions were showing as separate money outs even though the money had not been finally taken and it did cause all sorts of fraud worry because we had no inkling as to who kept presenting these money out transactions which looked like draining our account. Of course had we totted up the pre payments each time with our on board bill perhaps we should have guessed the originator sooner. The final bill of $6995 was not problem and we had a lovely time with Cunard, but I think as you quite rightly deduced, we also got the feeling it was easier to allow the last two weeks of pre-payment transactions to purge naturally rather than cancel these at the end of our cruise so the money out on our account was not reconciled straight after bill payment but only after we asked our bank to return the outstanding pre payments.

On your other point about activating the holds; if they did that then the customer would then see a debit each day on their card statement as opposed to one final figure just being shown. That would cause all sorts of problems I reckon - can you imagine someone seeing say 7, 14 or even 28 separate transactions ? So showing just the final amount is best. But the downside is of course said holds taking ages to be removed.

But really it should not be much of a worry I don't think anyway. Taking myself as an example, on our last 3 14 day cruises our on-board spend was about $2500 ( £1650 ). So if you double that, $5000 ( £3700 ), that's not a high limit anyway, so would it that many people a problem anyway ?

And there's the key - $5,000 should be a available credit for credit cards. But for debit cards/checking accounts could be a sum high than most people want to risk playing with holds/authorizations/3 week delays.

Good point. For a credit card, say $5000 should be fine, but not for your debit/checking/(current account in the UK). I don't tend to have that balance in mine in general.

I'm not sure if I've ever used a debit card to settle my account at the end of my cruise now I think about it.

Hi Fellow Travellers

After reading these very interesting posts I have decided for my upcoming QV March 2016 cruise, I will use my credit card. For me, it will be better to tie up that money and keep my debit card free for my extended stay in Hong Kong.

I like to let the bank know which countries I will be in so that they know not to cancel my card if they see an unexpected overseas transactions.

Can someone please advise when the final payment from Cunard lands on your bank statement does it say something like Cunard England or USA and the final amount or Carnival ??? and final amount. I would like to let the bank know in advance that a charge will be coming from them.

Thank you kindly Robyn

Last year my onboard account charge appeared in my credit card statement as in as CUNARD QM2 MIAMI FL

The deposit on a future cruise made while aboard showed up as CUNARD LINE SANTA CLARITA CA

My payment always show up as pending as soon as payment is made. That is on my online account.

Exactly what I was hoping someone would post. Thank you so much. I will just change the QM2 to QV when I let the bank know and I forgot the FC deposit appears differently on the statement. Kind regards Robyn

Last year my onboard account charge appeared in my credit card statement as in as CUNARD QM2 MIAMI FL

 

The deposit on a future cruise made while aboard showed up as CUNARD LINE SANTA CLARITA CA