Originally Posted by coolbreeze
Maybe we're splitting hairs, but this "authorization" will cause you to overdraft (that is, if you roll with a low balance). So it's just as bad as a charge.
Moreover, what good is an "authorization" that proves you currently have $274 in your bank account? 39 days from now, you will have a very different amount. Doesn't make sense for the system to say "hmm, they have $274 in the account now. Check. Seven days from now, we'll reverse this charge then charge them again in over 30 days. Hopefully the funds are there then..."
Maybe I'm too logical?
I'm just not sure what the authorization proves/accomplishes.
I am sorry but that is the way the US banking system works. I know first hand that if can cause you to overdraft, as this happened to me many years ago.
As for the time, the law allows for 5 business days. That is why they told you seven days. It also up to the bank how long it is held for. With my current bank account, it is only 1 business day.