Why Pending Charges Look Higher Than the Final Amount

Sometimes, when you make a payment, your bank initially treats it as a pending authorization or a hold. This isn't your final charge, it's just the bank reserving funds while the transaction processes.

For rentals (as well as hotels or gas stations), this pending amount often appears higher than what you'll actually pay. Here's why:

1. Security Buffer
   • Banks and card networks typically add a small cushion to ensure sufficient funds are available.
   • Example: A $500 rental might initially show as a $550-$600 pending charge.
2. Delayed Adjustments
   • The system initially authorizes the maximum potential charge (rental fee + deposit + taxes)
3. Bank Policies
   • Banks vary in how they display pending charges. Some immediately show the final amount, while others display the higher authorization until settlement.