How Long Do Hotel Authorization Holds Last?
Understand the typical duration of hotel authorization holds and the factors affecting their release. Learn how to manage these temporary financial reservations.
When checking into a hotel, many travelers encounter a process known as an authorization hold. This practice involves a temporary reservation of funds on a guest’s payment card. Its general purpose is to ensure that sufficient funds are available to cover potential charges during a stay.
Understanding Hotel Authorization Holds
An authorization hold is a common financial practice in the hospitality industry, distinct from an actual charge. While a regular charge immediately deducts funds from an account, an authorization hold temporarily freezes a specific amount, making it unavailable for other use without actually transferring it to the hotel. This mechanism allows hotels to verify payment validity and secure potential costs.
Hotels implement these holds primarily to cover the room rate, associated taxes, and any potential incidental expenses. These incidentals can include services like room service, mini-bar purchases, or even potential damages to the room during a guest’s stay.
The impact of an authorization hold differs significantly depending on the type of card used. For credit cards, the hold reduces the available credit limit but does not immediately affect the cardholder’s cash balance. However, for debit cards, the held amount is directly frozen from the checking account, meaning those actual funds become inaccessible. This can lead to issues with available cash for daily expenses if not anticipated.
Typical Duration of Hotel Holds
Hotel authorization holds typically last for a few business days after a guest checks out. While some holds may be released within 24 hours, it is common for the process to take anywhere from three to ten business days for the funds to become available again. This timeframe is not solely determined by the hotel but involves multiple financial entities.
The hold is initially placed by the hotel through its acquiring bank, which communicates with the cardholder’s issuing bank. Once a guest checks out, the hotel finalizes the actual charges and instructs its bank to release the remaining hold. The time it takes for these funds to reappear in a cardholder’s available balance depends on the processing speeds of both the hotel’s bank and the guest’s bank.
Factors Influencing Hold Release Time
Several elements can influence how quickly a hotel authorization hold is released and the funds become accessible. The specific policies of the hotel itself play a role, as some establishments might have internal procedures that affect the promptness of hold releases.
Transaction timing, such as whether the check-out occurs on a weekend or during a public holiday, can also extend the release period. Financial institutions typically process transactions during business days, so holds initiated or released around non-business days may experience delays. The type of card used also affects the timeline. International transactions may also have different processing times due to varying banking regulations and systems across borders.
What to Do About Prolonged Holds
If a hotel authorization hold remains on an account for an unusually long period, there are specific steps to take for resolution. First, carefully review the bank or credit card statement to confirm that the hold is indeed still active and has not been converted into a charge or already released. Sometimes, the hold might have cleared, but the transaction history display can be confusing.
Next, contact the hotel directly to inquire about the hold’s status. When communicating with the hotel, provide relevant details such as the reservation number, check-in and check-out dates, and any transaction identification numbers. The hotel can confirm if the hold has been released from their end.
If the hotel confirms the hold’s release but the funds are still not available, the next step is to contact the cardholder’s own bank or credit card issuer. Provide them with all details of the stay and the hotel’s confirmation of release. The bank can investigate the status of the hold and often expedite its removal. Maintaining records of the stay, including receipts and communication with the hotel, can assist in resolving such issues efficiently.