Hi, I'm new so have a simple question. How can one charges more than the card limit? Won't that result in failed authorization at the store? I read all these fees for over-the-credit and do not quite understand. Thanks.
I experienced an over-the-limit fee because my account was near my limit. And when the finance charges came around, that pushed me over the limit. I was able to fight this and get the otl fee dropped. Also, if your annual charge (if applicable) is more than your available credit amount, this will create otl fees as well. This is why I think a higher limit ($500 or more) is really necessary.
If your purchase puts you just above the limit, the bank will be happy to let you go over, this way they can charge the Over the Limit fee without too much risk... of course you cannot charge a $3000 item on a $200 card...
I had this happen another way. I charged an item and the merchant did not submit the charge (or so I was told) until several weeks later. This made may account go over the limit due to charges I made in the interim.
