What Happens if Your Card Declines at a Hotel?

It can be an unexpected and stressful experience when a payment card declines at a hotel. This situation can arise for various reasons, from issues with the card itself to hotel payment processing protocols. Understanding the common procedures hotels follow and the steps guests can take helps navigate these moments.

Declined Payment at Check-in

When a payment card declines at check-in, the hotel informs the guest discreetly. The front desk staff will request an alternative payment method to secure the room reservation. Hotels require a valid card for the full estimated cost of the stay, including potential incidental charges, through a pre-authorization hold.

If the initial card declines, check-in cannot be completed until a successful pre-authorization is obtained. This hold reduces the available credit or funds on the card for the duration of the stay. Without a valid payment method, the hotel may not be able to provide access to a room.

Declined Payment During Your Stay or at Check-out

A card can also decline after check-in, for incidentals or at check-out. If a pre-authorization expires during a longer stay, or new charges are incurred, the hotel may attempt to re-authorize or charge the card. If this fails, the hotel may contact the guest to resolve the matter.

At check-out, if the final balance cannot be processed on the card, the hotel will inform the guest of the outstanding amount. This situation differs from a check-in decline because services have already been rendered. The hotel will seek immediate payment for all charges incurred.

Steps to Resolve a Declined Payment

Guests can take several steps when a card declines. The most immediate is to provide an alternative card. Many travelers carry multiple cards, and a different card may process successfully if the initial decline was due to a temporary issue with one specific account or issuer. Digital wallets may also store additional card options.

If alternative cards also decline, contacting the issuing bank is the next step. Banks can identify the reason for a decline, such as a fraud alert, spending limit, or insufficient funds. Speaking with customer service can resolve issues quickly, allowing the card to be re-processed. Banks commonly place temporary holds as a security measure, which they can lift after verifying the transaction.

If card issues persist, exploring other payment methods is necessary. Some hotels may accept cash, though this is less common for large amounts or incidentals. Mobile payment apps or arranging for a third party (e.g., family, employer) to pay directly may also be options if the hotel supports such transactions. Timely communication with hotel staff is important.

Hotel Actions for Unpaid Stays

If a payment issue remains unresolved, hotels have procedures to address unpaid stays. The primary goal of the hotel is to secure payment for services rendered. The hotel will continue to communicate, requesting immediate payment for the outstanding balance.

If payment cannot be secured, the hotel may request the guest vacate the room. While hotels prefer amicable resolutions, they reserve the right to deny further services if payment is not forthcoming. In some instances, particularly at check-out, the hotel may withhold luggage until the outstanding balance is settled, especially if the guest has departed the room but not the premises. In rare cases, such as refusal to leave or disruptive behavior beyond non-payment, hotels may involve security or local authorities.