Credit availability reduction is an authorization. Merchants can do an authorization for X amount of $, which is "held" for usually about a week, and the authorization is good for a month. Authorized mean the issuing entity guarantee the fund is available for when the merchant finally "Batch" out all of their orders for the night.
When you're in authorization hold, the amount is deducted from your available line of credit, but that amount is not yet actually taken out as a transaction, this is why you wouldn't see it on your statement as an actual transaction. It's also why sometimes if you use CC at a gas station, it'll show sometimes the available credit line dropping by like $100 for a $30 purchase, then might take another day or two to normalized after the station batch up those transactions and charge your card the correct amount.
After about a week, most issuers will reverse the hold. The merchant can still charge the card, but the guaranteed fund available get more interesting...
Until it actually show up on their card statement, it's not really a Charge, only an Authorization, so I'm not sure if everyone reporting the charge is actually in their description.
And someone above said merchant don't charge until shipping time, which is not exactly a law. It's a good practice in case they have order cancellations. A merchant's discount rate with their processor goes up when there are charge backs, or if they have a large number of merchant cancellations. The best way to avoid that is to only do authorizations until you're sure you can fulfill the order.
Thanks for that detailed breakdown. I work for myself but luckily don't have to take cards as a way for people to pay me - and I'm quite pleased about that.
What I'm dreading is the hold being reversed and then I will be right back to square one, although if I read you correctly the process won't have been wasted as Apple will be able to put the charge through after that without any hold ups.
They're just toying with my somewhat frazzled emotions.
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To clarify, I may have used the wrong words when stating I had been charged.
When I said I had been charged I was going off the fact that the Apple representative on the phone said my payment had been accepted. I had to ring up and fix it as it declined the first time due to spend limits. First time that's ever happened in my life!
I have checked and the payment for the nMP on my card is showing as "outstanding authorisation".
Ah. That sounds the same as me, then. My bank doesn't show who the authorisation is for but the amount is 100% Mac Pro cost so it's pretty obvious. I'll let you know if it changes to a real charge - perhaps you can do likewise. Will be interesting for others when the authorisation turns to a charge or shipment