Can You Use a Maxed-Out Credit Card for Hotel Incidentals?
Navigate hotel incidental policies and credit card authorization holds. Learn why a maxed-out card likely won't work and find practical payment solutions.
When traveling, a common concern for many individuals is how to manage incidental expenses at a hotel, particularly if their primary credit card is nearing its credit limit. Hotels typically require a payment method on file to cover potential additional charges beyond the room rate. Understanding how these policies work, especially concerning credit card authorization holds, can help travelers avoid unexpected issues during their stay.
Understanding Hotel Incidental Policies
Hotels implement incidental policies to secure payment for charges that guests might incur during their stay, which are separate from the room rate. These can include items like mini-bar purchases, room service orders, pay-per-view movies, phone calls, or even potential damages to the room. By requiring a form of payment for incidentals, hotels protect themselves from losses if guests use these services or cause unforeseen expenses.
A common practice is for hotels to place an “authorization hold” or “pre-authorization” on a credit card. This hold is not an immediate charge but rather a temporary reservation of a specific amount of funds on the cardholder’s credit line. The purpose of this hold is to ensure that sufficient funds are available to cover any incidental charges that may arise during the stay. The amount of this hold can vary significantly depending on the hotel’s policies, the type of establishment, and the length of the guest’s stay, typically ranging from $50 to $200 per night or per stay, though it can be higher at luxury properties.
How Credit Card Authorization Holds Work
A credit card authorization hold functions by temporarily reducing a cardholder’s available credit. When a hotel initiates a pre-authorization, the credit card issuer verifies that the requested amount is available on the card’s credit line. If the funds are available, the amount is set aside, and the card’s available credit is reduced by that sum. This means the cardholder cannot use that specific portion of their credit limit for other purchases until the hold is released.
If a credit card is “maxed out,” meaning its outstanding balance is at or very close to its credit limit, there may not be enough available credit for the hotel to place an authorization hold. In such a scenario, the transaction for the hold will likely be declined. Without a successful authorization hold, the hotel may not permit the guest to charge incidentals to their room, even if the guest intends to pay for those charges later with cash or a different method. This is because the hold acts as the hotel’s primary assurance that incidental costs can be covered.
Exploring Other Options for Incidental Payments
Travelers facing limitations with their primary credit card for incidental holds have several alternative payment methods. The most straightforward option is to use a different credit card that has sufficient available credit to cover the hotel’s authorization hold. Many hotels also accept debit cards for incidental deposits.
When using a debit card, hotels typically process an actual charge for the incidental amount rather than a hold, which is then refunded upon check-out. This means the funds are debited directly from the linked bank account. The refund process for debit card charges can take longer than the release of a credit card hold, often ranging from 3 to 10 business days for the funds to become available again, depending on the bank’s processing times. A less common, but sometimes available, option is to pay a cash deposit for incidentals, which is then refunded at check-out after the room has been inspected and any charges deducted.