Using your Debit Card for Hotel or Gas May Lead to Card Declines Later

Using your debit card may seem like a smart way to avoid adding to your credit card debt, but doing so can lead to card declines later due to how those charges work. Here are a few examples.

Whenever you use a debit card at a business that's unsure what your total bill will be—like a gas station or a hotel—they'll "block off" a certain amount. That safe amount could be between $50 and $85 at a gas station, or the cost of a room for a night or more at a hotel. They do this to make sure they get paid, and you can't book a room now only to be unable to pay after the transaction clears or you check out.

Unfortunately, that also means a chunk of your available balance might be blocked off, and even though your balance shows you can afford a purchase, your card may be declined later because of it.

If you plan to use your debit card for travel expenses, this could potentially cause a major headache. Make sure you have at least one credit card, or cash, at the ready to fill in if you do get "blocked off."

Smart Banking: Little-known facts on debit cards | Bankrate

Photo by Riza Hugraha.