Why am I being charged when my payment failed?

Sometimes you will see a charge notification, even though a payment has failed with the payment processor.    This is usually an issue where the card issuer does not differentiate between a funding charge and a funding block.

What Is a Credit Card Block?

A credit card block or hold is the reservation of a portion of a credit or debit card balance for the cost of services not yet rendered. Credit card blocking is most common in the hospitality industry. However, it is also used by rental car companies. In general, credit card blocking is more likely to be used for payments involving services (as opposed to products).

When your funds are blocked, you will receive a notice of card activity, but it does not mean a successful charge has occurred.  Many notifications treat a debit and hold in the same way.

When will funds be returned?

The return is immediate when using a credit card.

When using a debit card attached to a bank account, the return can take longer.   As the bank needs to deduct funds from your bank balance, it can take several days to be returned to your balance.  In addition, you may not receive any notice of the credit.

More on credit and debit card holds…

Was this article helpful?

Related Articles