Buzz
While using your debit card might seem like a smart way to avoid adding more debt to your credit card, it can result in declines down the road due to the way these transactions are processed. Here are some examples.
When you pay with a debit card at businesses where the total charge is uncertain—like a hotel or gas station—they may place a temporary hold on a certain amount. This could range from $50 to $85 at a gas station, or the cost of a room for one or more nights at a hotel. They do this to ensure payment, preventing the situation where you book a room and then can't pay once the transaction goes through or after checkout.
Unfortunately, this means part of your available balance might be locked, and despite appearing to have enough funds in your account, your card could still be declined later because of this hold.
If you intend to use your debit card for travel-related expenses, this could lead to significant issues. It's wise to have a backup credit card or cash available just in case your funds get "blocked off."
Image courtesy of Riza Hugraha.
