This is how I see it. They will pre-authorize $100. When this is hit, authorize an additional amount to cover charges, rounded up to the next $100. Therefore, at the end of the trip, your total authorizations will be the total amount charged to the room, rounded up to the next $100. There might be lots and lots of individual authorizations.
When you check out, they will then charge your card. They will not want to use the pre-authorizations. Instead, they will make a new charge for the total amount owed, then release all the holds. The reasons is that there is a per charge fee the credit companies charge. If they make were to use all the smaller pre-authorizations, then there fee would be quite a bit more, than by making a single charge at check out.
This will result in both a charge and authorization being on the card for nearly identical amounts (within $100), so the guest’s available balance will decrease by just over double what they actually spend.
If the guest doesn’t have enough of an available credit to cover double the charges, Disney can contact the credit card company, and they can work out the charging of the card (as the guest did have the available balance for what is actually being charged, and Disney hadthe pre-authorizations for it, it can be done, Disney might just have to eat the extra fees of using the pre-authorizations instead).
When the guest gets their statement (or looks at their account a few days later), they will just see the one charge at the end.
This is exactly how Carnival cruise does it.
If this is correct, then it will be easier than ever to use Disney gift cards,as you won’t have to worry about using the gift cards before the resort limit is reached. The resort limit will be a thing of the past. With the pre-authorizations, there is no need for it.
I always pay-off my room only reservation 100% in full prior to arriving on WDW property. I am in the group that throws everything onto my MB and then pays off my balance with Disney gift cards. As long as the caps are the same and I can pay with gift cards, I will be happy.
My main concern is the number of "authorizations" I will have on my card. I have a high enough limit to allow for what I will charge, but if I spend say $400 a day between meals and souvenirs, will I have 28 different $100 holds on my CC at the end of the trip? If gift cards cannot be used the same as now and then I have a $2,800 charge on top of the 28 $100 credit, will $5,600 of my credit line be tied up? I'm also worried that my card issuer will think there is some type of possible fraud with 28 different $100 authorizations.
The number of pre-authorizations doesn’t make a difference to you (whether it be a bunch of smaller ones or one big one), but yes, $5600 (to use your example) will be tied up (if my understanding is correct). However, gift cards should be able to be used the same way. The bank will understand what is happening and won’t bat an eye (and will have lots of customers doing this).
My plan is to ask them at checkin if they can just pre-authorize $2000 instead of a bunch of smaller ones. My guess is they will do this if asked.
Why bother? It shouldn’t make a difference. UNLESSS.......
Now, it is possible they will actually charge your card every time you exceed the $100 threshold. However, there would be no need for them to keep making new $100 pre-authorizations. When the balance due passes $100, they make a new charge for the balance, and then leave the original $100 in place.
Record of activity would then be something like this (assume room balance paid in full in advance).
1. Pre-authorize $100
2. You spend $165 for lunch and refillable mugs
3. Disney charges $165 to your card
4. You spend $30 for snacks
5. You spend $60 at resort bar
6. You spend $30 in gift shop
7. Disney charges $120 to your card
8. You spend $75 for lunch
9. You check out
10. Disney charges $75 to your card
11. $100 authorization drops off days later
Under this way of doing it, it would be virtually impossible to use gift cards (or cash) to pay the balance for things charged to your room without them allowing for pre-loading your account. However, the benefit to the guest is that they won’t have the double authorizations.
Also, this second way would result in a LOT more credit card transactions, and thus more fees to the credit card company. However, it is possible Disney was able to negotiate their fee to be a percentage only, without a per transaction fee.
Now, if the pre-authorization is for $2000, then it would be easy to pay down your balance with gift cards/cash before your credit card is hit with any charges (you just must keep track of how much you spend, and not go over the limit).