Why is my credit card charge showing up twice?

Seeing a double charge on your credit card statement can be alarming, but often, it’s not what it seems. Before panicking and calling your bank, understanding the difference between a pending authorization and a posted transaction can save you time and stress. That seemingly duplicate charge is frequently just a pre-authorization, a temporary hold placed on your funds by the merchant.

Here’s why you might see two entries for the same purchase:

The Pre-Authorization Process: When you swipe, tap, or insert your credit card, the merchant initiates a request to your card issuer to verify you have sufficient funds. This creates a pending authorization, a temporary hold for the estimated transaction amount. This hold ensures the funds are available when the transaction is finalized. Think of it like reserving a hotel room – your card is guaranteed to cover the cost, but the final bill isn’t settled until you check out.

Why the Duplicate? The initial pre-authorization appears on your statement as a pending transaction. Later, when the merchant processes the actual sale, the final charge appears. For a short period, it looks like you’ve been charged twice for the same item. However, the pending authorization will typically disappear within a few business days, leaving only the final, accurate charge.

Common Scenarios for Pre-Authorizations:

• Restaurants and Bars: They often pre-authorize an amount higher than your initial order to account for potential additions like appetizers or drinks. The final charge reflects your actual bill.
• Hotels and Car Rentals: These businesses pre-authorize a hold to cover potential incidentals, damages, or extra services. The hold is usually released after you check out or return the vehicle, with the final charge reflecting the actual cost.
• Gas Stations: Pay-at-the-pump transactions often involve a pre-authorization for a standard amount (e.g., $75 or $100). The final charge reflects the actual fuel purchased.
• Online Orders: Some online retailers place a pre-authorization hold when you place an order, and the final charge goes through when the order ships.

When to Be Concerned:

While most duplicate charges are simply pending authorizations, there are exceptions:

• Two Posted Transactions: If you see two posted transactions with the same date and amount, contact your card issuer immediately. This could indicate a billing error or fraudulent activity.
• Pre-Authorization Doesn’t Disappear: If a pending authorization lingers for an unusually long time (more than a week), contact the merchant and your card issuer to investigate.

Best Practices:

• Check Your Statement Regularly: Regularly reviewing your credit card statement helps you catch potential errors or unauthorized charges early on.
• Contact the Merchant First: If you’re unsure about a duplicate charge, contact the merchant first. They can often clarify whether it’s a pending authorization or a genuine double charge.
• Keep Records: Retain receipts and confirmation emails for your purchases to compare against your statement.

Understanding the pre-authorization process can alleviate the anxiety of seeing a double charge on your credit card statement. By following these tips, you can monitor your spending effectively and address any legitimate billing issues promptly.