Do hotels charge your credit card for deposit?

The Hotel Hold: Understanding How Hotels Handle Credit Card Deposits

Ever checked into a hotel and noticed a slightly higher pending charge on your credit card than you anticipated? Don’t panic! It’s likely a security hold, sometimes referred to as an incidental hold or deposit, and it’s a very common practice in the hospitality industry.

While it might feel like a charge, the hotel isn’t actually taking that money out of your account right away. Instead, they’re essentially reserving a portion of your available credit to cover any potential extra expenses you might rack up during your stay. Think of it as a security blanket for the hotel.

Why the Hold?

Hotels implement these holds to protect themselves from unforeseen costs. These costs can stem from various things, including:

• Room Service: Late-night cravings and breakfast in bed are convenient, but they come at a cost. The hold ensures you can indulge without worry about exceeding your initial payment.
• Mini-Bar Purchases: That tempting array of snacks and beverages in the mini-bar are often a significant contributor to incidental charges.
• Restaurant and Bar Tabs: Charging meals or drinks at the hotel’s restaurant or bar to your room is a common convenience, and the hold ensures those bills are covered.
• Damage to the Room: While nobody plans to damage their hotel room, accidents happen. The hold provides a buffer for minor repairs or replacements, like a stained carpet or a broken lamp.
• Other Services: This can encompass things like spa treatments, laundry services, or pay-per-view movies that are charged to the room.

How Much is Typically Held?

The amount of the hold can vary widely, generally falling between $50 and $200 per night of your stay. Several factors influence this amount:

• Hotel Class: Higher-end hotels with more extensive amenities tend to impose larger holds.
• Length of Stay: Longer stays naturally warrant a higher hold to accommodate potential expenses.
• Location: Hotels in popular tourist destinations or major cities might have higher hold amounts.

It’s Not a Direct Charge, But It Does Impact Your Credit Limit

The crucial point to remember is that this hold isn’t a transaction. It’s a temporary reduction in your available credit. So, if you have a credit card with a $1,000 limit and the hotel places a $200 hold, you’ll only have $800 available to spend on your card until the hold is released.

When Does the Hold Get Released?

The hold is typically released within 3 to 10 business days after you check out. The exact timeframe depends on your bank’s policies and how quickly the hotel processes your final bill.

Tips for Managing Hotel Holds:

• Inquire Upon Check-In: Don’t hesitate to ask the front desk staff about the hold amount and their estimated release timeframe.
• Consider Debit Card Usage (with caution): While hotels accept debit cards, be aware that holds on debit cards can result in an actual deduction of funds from your bank account, impacting your available balance. The release process might also take longer compared to credit cards.
• Monitor Your Credit Card Statement: Keep an eye on your online credit card statement to ensure the hold is released within the expected timeframe. If it hasn’t been released after 10 business days, contact the hotel directly to inquire.
• Pay Incidentals Separately: If you’re concerned about the hold affecting your spending limit, consider paying for incidentals like room service or mini-bar purchases in cash or with a different card.
• Communicate with the Hotel: If you have specific concerns or anticipate minimal incidental charges, talk to the hotel staff. They might be willing to adjust the hold amount or offer alternative solutions.

Understanding the hotel hold system can alleviate confusion and ensure a smoother travel experience. By being informed and proactive, you can manage your credit effectively and enjoy your stay without unnecessary surprises.