Discovering that a vending machine has charged more than the price of your purchased item can be perplexing. This unexpected scenario is often due to a process known as pre-authorization. This article will explain why this happens, its implications, and the steps you can take.
Decoding Pre-Authorization
Pre-authorization is a practice where a merchant temporarily holds a certain amount from your credit or debit card, ensuring sufficient funds for the transaction. This is common in automated transactions like those at vending machines.
Why Vending Machines Do This
Vending machines often pre-authorize an amount higher than the item’s cost, usually the price of the most expensive item available, as a security measure. This ensures the card can cover the transaction, temporarily reflecting a higher charge on your account.
Adjusting to the Actual Purchase Price
After your purchase, the actual charge will be adjusted to reflect the real cost of the item. For example, if the machine pre-authorizes $5 for a $2 item, the final charge will be $2, with the difference released back to your account.
Time Frame for Charge Adjustment
Adjustments typically occur within a few days, usually 3-4 days. During this time, the pre-authorized amount is held and not available for other uses, affecting your available credit limit temporarily.
Your Rights as a Customer
If a vending machine’s pre-authorized charge leads to overcharging or prolonged holds, you have the right to dispute the transaction. Contact your bank or card issuer for assistance if the charge adjustment is delayed or incorrect.
Differences Between Card Types
The impact of pre-authorization may differ between credit and debit cards. Debit card users might see an immediate reduction in their available funds.
Considerations for International Transactions
In international transactions, additional factors like currency conversion and transaction fees can influence pre-authorization processes.
Note: Practices and time frames can vary between financial institutions and merchants.