Klarinet Archive - Posting 000359.txt from 2006/10

From: Mark Charette <charette@-----.org>
Subj: Re: [kl] Guidance please.......
Date: Mon, 30 Oct 2006 17:19:58 -0500

GrabnerWG@-----.com wrote:
> The problem with this, of course, is that in the case of a default, the
> credit card can be over the limit of canceled. This happened to me once, with a
> student that ordered mouthpieces for himself and other students. He sold the
> mouthpieces, but did not pay me the balance. When I went to charge his card,
> the transaction was refused as the card was over the limit.
>
You need to learn the ins and outs of credit card processing, Walter.
You can put a 'hold' on the credit card for the money without charging
the card; the amount is reserved and held against the credit limit. That
portion of the credit card limit is unavailable to the customer. It does
3 things for you: 1) it ensures the people have available credit, 2) it
reserves the funds in case of non-returned merchandise and 3) the credit
card cannot be canceled by the customer until the hold is cleared. You
just need to tell your customers what you're doing.

That's the only way an auto rental place can operate ... you say you
want to rent for a day, they put a hold on the amount of money for a
week (or more). Surprises people when all of a sudden their credit card
is declined. It's in the fine print on your rental contract.

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