Is it better to use Credit Card for Online Shopping in Amazon?
Asking this because I used a debit card (Metrobank) to shop on Amazon but the merchant cancelled my item before it was shipped. I had got a pre-authorization charge on P15k of my purchase.
From what I have researched:
Pre-authorization charge is basically when your money gets "hold" and is set aside by the bank. It is also a litmus test to see if you really have X amount of money on your debit/credit card. There is a time limit for this hold to "fall off" or expire. However neither Amazon nor metrobank wants to clarify exactly when this hold expires. In this case, P15K was subtracted from my account and I'm basically waiting for that P15K to come back for god knows when? (Till I probably complain Metrobank to the BSP).
When the merchant decides to take the money in, that's when it becomes an authorization charge (or aka completed authorization charge). In the case of credit cards, the merchant has to decide to take the money or not within 5 days when the pre-authorization charge is issued, otherwise the pre-authorization charge "should fall off". I am not sure in the case of debit cards, because banks here in PH want to be vague about it and want to hold on to your money as long as possible, which is why I suspect that you will see them saying it may take up to 47-120 days for your refund to be processed? What a complete BS. So this is how banks in PH scam you - by making refunds a bloody process.
IN wikipedia it says credit cards have a faster lead time in cancelling pre-authorization charges than debit cards, is this true in the case of PH cards? or does it actually take long to also cancel pre-authorization charges?
Now I am thinking of using a credit card instead. Instead of risking my money to be on "hold" due to pre-authorization charge like what they did to me, why not use the bank's money instead (If this logic is true).
Does anyone have any experience when having refunds using a PH credit card in Amazon? How many days does it take for the cancellation occur on your credit card?
Also, do you get charged for pre-authorization charges on your credit card? Afaik you don't
If so then I will consider switching to credit card, but not sure which bank to go for (any suggestions would be welcomed)
My other previous option was going with a debit card with UnionBank, seeing that they're "the best in digital transactions" but not sure how fast do they resolve refunds/reversals - especially for "pre-authorization charges".
Any advice po, suggestions, clarifications or info would be highly welcomed
0 · Share on Twitter