I need some help understanding something that Monzo appears to do differently than traditional banks.
Today, I placed a pre-order for a CD on the website CDJapan. They pre-authorise the full amount of the order when the order is placed, but don’t take the money until it ships, which in this case is not for over a month.
With my old bank, it would come off the available balance, but wasn’t included in the current balance (i.e. what I actually have to spend). Monzo, however, seems to treat it as a finalised transaction and take it off my balance immediately. This leaves me with a few questions.
If this pending transaction took me more than £20 into overdraft, would I have to pay charges, or would I have leeway because I technically haven’t been charged yet and won’t for another month or two?
Could it be possible to mark longer-term pre-authorised transactions as such so they don’t blur the live account balance? Perhaps with a date expected to be properly charged (i.e. the day before release date, etc).
I appreciate that Monzo takes the balance down immediately for transactions, but if I’m budgeting for a big purchase of, say, an expensive anime figure from Japan that I need to pre-order a few months in advance, and I’ll have the money at the time but not right now, this setup seems a bit confusing…