BISMARCK, N.D.—The North Dakota House has voted down a bill that would have required financial institutions to release a debit card hold placed on an account for the preauthorized amount within two business days when the transaction was satisfied by another payment.
The legislation had been opposed by the state’s credit unions, which had been contacting legislators to express their positions, and who also appeared before the state House Business and Labor committee. The bill was sponsored by Rep. Mark Dosch (R-Bismarck), who owns and operates hotels in Bismarck, Fargo and Grand Forks. Dosch testified that on occasion customers have problems when debit card issuers hold “pre-authorized funds” for a number of days when a transaction is supposed to have been matched or closed.