What is a relevant issue in China's Hospitality Industry?

Can a merchant charge a credit card over 2 months after the authorization falls off?

• August of 2010 I visited my children in Gastonia, NC and stayed at a Days Inn. I was 'charged' $308.91 to my Mastercard debit card. (It is with Comerica, a company that my disability funds are disbursed to instead of a paper check. GO GREEN!) I receive Social Security Disability benefits and check my account often because I am not a millionaire and every cent counts. Anyway, I was charged in August for my stay, then on the 3rd of November 2010 I pulled cash out of my account to pay some bills, all but my vehicle insurance which I pay online with my card. I left $185 in the bank. When I tried to pay my insurance, the card declined and I new it had to be wrong. So I looked online at my account and saw that it was $123 overdrawn! OMG! After looking further, it appears that after I had gone to the ATM and pulled funds out, this Days Inn hotel charged my card for the remaining amount on my account PLUS 'forced' an additional amount out, which caused me to overdraft. These two charges added up to the original $308.91. Now, I am being told many different things. - In the state of NC, a merchant has 5 days from the initial authorization to retrieve their funds (which I stayed for 7 days, so that seems like it could have more details to it). - A merchant has 7-10 days to clear the authorization and charge the card to gain funds. - A merchant is not able to charge a card after the pre-authorization falls off unless the client is notified. Granted this is a lodging merchant and rules are different than that of, say, a convenient store as far as charging a credit/debit card. If I owe the money, I have no problem in paying for the services I received. However they took all of my money and then some! Being on a fixed income, this has rendered me penniless until next month. I do, however, sell a little bit on eBay, so wish me luck! (-: I do not see why, if there was a mistake back in Aug, how come they did not catch it in Aug, Sept or Oct?? Why wait until NOVEMBER? (There were about 40 of these 'mistakes' on different client's MasterCards from the same time frame. This was told to me by one of the front desk employees that could speak English) A NC judge said that if a merchant does not retrieve his funds within the time that the pre-authorization amount falls off, that he is not allowed to charge the credit card and it would be considered 'Obtaining Personal Information Under False Pretenses'. Also, what happened to, "We do not keep any personal banking information", and where did the 'card on file' come from? I have worked in the hospitality industry (auditing) for many years and I do not believe this has ever been an issue. All monies were processed nightly or within 48 hours. So I am really confused on this one. Thanks, in advance, for any light that is able to be shed on this matter. Hugz!

• Answer:

  In August did they charge you? Did the money come out? Yes, you are right, why would they wait so long to get it if they didn't get in August. Did you try to file a dispute with your MasterCard? I am sure they will be willing to help you and see if they can refund the money.