They had just returned from a nearby city when they learned that a credit card transaction had been declined. After making inquiries, it was learned that the company had put the card on hold because the amount being charged was an "unusual amount" which required it be flagged for potential fraud. The hold had prevented an urgent bill from being paid, holding up a major shipment of personal goods. It is another way the fraudsters have created problems for the general public.
According to a businessman associated with a major moving company, this type of action occurs frequently, about one-third of the time when dealing with a customer. A credit card is declined because the amount is too large or unusual, out of the ordinary for a particular customer. This means it is likely other companies and private citizens experience the same issue, while the use of a credit card becomes increasingly difficult during special times or emergencies.
Credit card organizations, including banks and credit unions, have learned that unusual amounts of money might mean credit card theft. If Joe Smith ordinarily uses his card to buy gasoline, take his family out to dinner and buy the occasional bouquet of flowers for his wife on a special occasion, a thousand dollar charge might trigger suspicion that his card has been stolen. So if Joe were to be stranded in a city far away from his home and had an emergency, needing to use his credit card might be difficult because of the geographical differences as well as any significant amount different from his usual spending habits.
Hotels typically put a hold on a credit card of an amount that is anticipated for a room charge. This only impacts individuals nearing their credit limit, however. With debit cards, the problems can be multiple. For example, if the card is stolen, then it is possible for the thief to liquidate much of an account before being caught. Furthermore, if the amount of the hold is close to the balance in a checking account used for the debit card, that might disallow additional transactions following the original charge.
As fraud and identity theft continue to expand, and large organizations find themselves as victims of hackers, more and more people are experiencing problems using credit cards. The protection is often to put a hold on the card for those unusual amounts, and whereas it is an inconvenience, it is a protection as well. It is when the customer is not advised and finds a credit card purchase denied that the need for emergency use can override the feelings about protection. Finding that balance continues to be a problem for both the bank and its customers until some way is found that allows flexible use of credit while at the same time the safeguards that keep people from being victims.
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