What Happens When a Hotel Puts a Hold on Your Card?

When checking into a hotel, guests often encounter a temporary hold placed on their credit or debit card. This procedure is a standard part of the check-in process. Understanding this financial practice can help guests manage their available funds during and after their stay. This temporary authorization is designed to address various potential charges beyond the room rate.

Understanding a Hotel Hold

A hotel hold, often called a pre-authorization, is a temporary reservation of funds on a guest’s credit or debit card. It is an authorization for a specific amount, not an actual charge that transfers money to the hotel. The hotel verifies funds are available and places a temporary block on that amount, reducing the available balance or accessible funds.

The distinction between an authorization and a charge is important. With an authorization, no money changes hands; it merely confirms the availability of funds and temporarily earmarks them. A charge, conversely, is a completed transaction where funds are transferred from the cardholder’s account to the merchant. The hold amount is typically determined at check-in, based on the anticipated length of stay and potential incidental expenses.

Reasons for Hotel Holds

Hotels implement holds primarily to secure payment for potential costs that may arise during a guest’s stay, beyond the initial room rate. This security measure helps hotels mitigate financial risks associated with various services and amenities guests might utilize. A hold ensures funds are available to cover expenses such as mini-bar purchases, room service, or on-demand movies.

Another reason for these holds is to cover potential damages to the hotel property or unreturned items. Holds provide a financial safeguard for the hotel against negligent or intentional damage to the room or its contents. They also confirm the guest’s ability to cover the full cost of the room, especially for longer stays where total room charges can accumulate significantly.

How a Hotel Hold Appears

A hotel hold impacts a consumer’s available funds immediately upon authorization. On a credit card, the authorized amount reduces the remaining credit limit, making those funds temporarily unavailable. For debit cards, the hold directly reduces the available balance in the linked checking account, similar to a pending transaction. This can sometimes lead to an overdraft if a cardholder is unaware of the hold and spends other funds.

When reviewing online banking statements, these holds typically appear with labels such as “pending,” “authorization,” or “pre-authorization.” They are distinct from completed transactions and will not have a corresponding settlement date until actual charges are finalized. The hold usually occurs during check-in or sometimes at booking, depending on hotel policy. The amount is commonly calculated as estimated room charges plus an additional fixed amount per night for incidentals, which can range from $25 to $100 or more, or a flat fee for the entire stay.

Releasing a Hotel Hold

Upon check-out, the hotel finalizes the actual charges incurred during the stay. The hotel then sends a final settlement request to the payment processor, and the original authorization hold is typically released. The actual charges are processed as a new, completed transaction on the card. The timeframe for a hold to be released and funds to become available can vary significantly.

Credit card holds are generally released within three to seven business days after check-out, though some can take up to ten business days. Debit card holds often take longer, sometimes ranging from seven to ten business days, and in some cases, up to 30 days, due to banking processing differences. If a hold is not released within a reasonable timeframe, guests should first check their bank or card statement. Then, contact the hotel directly to inquire about the hold’s status, providing reservation dates, check-in/check-out times, and any authorization numbers.

If the hotel confirms the hold is released but funds are unavailable, the guest should contact their bank or credit card issuer. Providing the bank with hold dates and hotel reference numbers can expedite the release. Maintaining records of the stay, including receipts and communication with the hotel, can help resolve prolonged hold issues.