A Detail Guide About Misused Authorization Fee
What is a Misused Authorization fee?
An Misused Authorization fee is a charge that a company may assess to your account to verify that you have the necessary funds available to cover a potential transaction. This type of fee is generally non-refundable, even if the transaction doesn’t go through.
Why might I be charged an authorization fee?
If you’re making a large purchase or booking a hotel room, for example, the company may want to confirm that you have enough money available to cover the cost. An authorization fee allows them to do this without actually withdrawing funds from your account.
What happens if I’m charged an authorization fee but the transaction doesn’t go through?
In most cases, the authorization fee is non-refundable. Even if the transaction is cancelled or doesn’t go through for some other reason, you’ll still be on the hook for the fee.
How can I avoid being charged an authorization fee?
There’s no surefire way to avoid being charged an authorization fee, but you can minimise your chances by doing a few things:
- Shop around: Some companies don’t charge authorization fees, so it pays to shop around.
- Use a credit card: If you use a debit card, the company may put a hold on your funds for the full amount of the purchase. This can tie up your money and make it difficult to access. If you use a credit card, you’ll only be responsible for paying the bill if the transaction actually goes through.
- Ask about authorization fees: Before making a purchase, always ask the company if they charge an authorization fee. This way, you’ll know what to expect ahead of time.
What should I do if I’m charged an authorization fee?
If you’re charged an authorization fee, you’ll need to pay it just like any other charge on your account. The best thing to do is to call the company and ask why you were charged the fee. This way, you can avoid being charged in the future.
Authorization fees can be annoying, but they’re generally not worth dispute. Unless you’re confident that you shouldn’t have been charged the fee, it’s probably not worth the hassle of disputing it. In most cases, you’ll just end up paying the fee and any associated dispute fees.
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