As I was checking in, I put the rooms on a debit card (which is not the best thing to do) instead of the credit card I used to reserve the rooms. When I went to check out, I couldn’t use the credit card because of the processing that had occurred with the hotel. The hotel ran the charges through on the debit card. My real problem is not with the credit card or debit card (I will use credit cards in the future however), my problem was with the transaction that occurs with the bank.

A sign was posted stating the way the bank and credit card policies work. The policies are not the hotel’s rather the bank.

Here’s how it works and how the bank uses deposits to make money.

When I checked in, estimates of how much money were to be spent were reserved from my account. When I checked out, the actual charges were deducted from my account.

However, and this is very important, the bank will still restrict use of the estimated funds needed at the time of check in for a period of four days to fourteen days. This restriction of funds is in addition to the charges already deducted for actual expenditures; therefore, the bank gets to use free deposits (mine and your accounts) to make money.

Although a few days doesn’t seem like a lot of time, the amount of money banks make on a daily basis from trading and exchange practices can be huge. As I stated in Part 1, the banks put an extended hold on my money in order to use the funds to make money for themselves.

Continuing with the extended hold I mentioned in my previous post, the March options just expired last Friday, which happened to be during the extra week my money was held. Coincidence?

Anyway, the bank will use money from deposits by holding the money and/or restricting use of our money to make money. This practice is in addition to borrowing money, i.e. savings accounts, CD’s, etc., and then turning around and loaning money.

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