Understanding how credit card preauthorization works can prevent discrepancies and unnecessary charges being posted to your account.
Most college students use their student credit cards to manage everyday expenses such as buying food, purchasing college textbooks and booking travel tickets to visit home. However, it’s also easy enough to settle the bar tab or pay for the occasional night out using your credit card, and many restaurants and bars will use a preauthorization process to set up your tab. Understanding how credit card preauthorization works can prevent discrepancies and unnecessary charges being posted to your account.
Ins and Outs of Credit Card Preauthorization
Credit card preauthorization allows an establishment to hold onto all of your account information so it can charge your card for a certain amount and reduce the balance as your tab grows. It’s easy to start a credit card tab at the beginning of the night, so you don’t have to pull out your card or cash throughout your stay. Preauthorization also reduces the risk that you will leave the venue without settling the tab, so it is in the best interests of the establishment to keep open tabs running throughout the night.
Still, the process isn’t perfect. Server or bartender errors may result in overcharges on your bar tab that can be challenging to reverse if you don’t catch them at the right time.
Settling the Tab at the Bar: Disputing Errors or Overcharges
When it’s time to settle your bill at the end of the night, the establishment will need your signature to confirm that you did indeed receive the services you were charged for. This is your opportunity to check for errors and make any requests to the supervisor or bartender. It’s too easy to just sign on the dotted line when you’re in a hurry to leave the venue with your friends, but taking a few minutes to check your receipt can save you stress and money later.
If you do find an error or overcharge, make sure you make a formal complaint to the manager or supervisor before you leave. It’s much easier to settle any discrepancies in person, especially if you can prove that you didn’t order certain items or services. In many situations, the manager will be able to process a refund right on the spot.
If you did not sign your receipt and the card was still overcharged, you can take a copy of the statement to your bank and explain that you were overcharged. The bank may contact the venue to request the original bank slip so that you can verify everything on it. The bank or credit card company will ask you to file a formal dispute if the establishment cannot provide solid evidence of the transaction.
Using student credit cards responsibly will help you keep track of your spending, and there are many advantages to using student credit cards for everyday expenses. When it comes to bar tabs, just make sure you’re not being overcharged at the end of the night and settle the bill with the bartender or manager before you leave the premises.
