It’s critical to track how and when your debit card account will be billed when staying in a hotel. Even if you’re not billed for a room right away, a resort can place a hold on your card, lowering your available credit on a credit card or restricting access to cash on a direct debit until your stay is over. When booking a hotel room, you may save money by prepaying for all or a portion of your visit instead of paying when you enter the room or leave.
When Do Hotels Charge Your Card?
In 2024. Research shows that 72% of all hotels usually charge your card when you leave the hotel (checking out) because, in that case, they know the final price and will swipe your card only once. However, if you make a reservation prepayment hotel can charge you some percent of the total payment before you visit the hotel. In any case, hotels will charge your card when you are checking out because of additional costs and incidental charges.
Hotels have different policies regarding when they charge your credit card, and it can vary based on several factors, such as the type of reservation, the hotel’s specific guidelines, and the booking method. However, here are the common instances when hotels may charge your card:
- Reservation guarantee: When you make a reservation, many hotels require a credit card to secure the booking. In such cases, the hotel may place a hold or preauthorization on your card for the total amount or a portion of the reservation cost. This is done to guarantee your room and ensure that you have a valid payment method. The hold amount is typically released after your stay or when you cancel the reservation within the hotel’s cancellation policy.
- Prepayment or advance deposit: Some hotels or booking platforms may offer discounted rates or special packages that require prepayment or an advance deposit. The hotel charges your card for the total amount or a predetermined deposit before your stay. This is commonly seen for non-refundable reservations or during peak seasons when hotels want to ensure guaranteed bookings.
- Check-in payment: When you arrive at the hotel and check-in, they may ask for your credit card. They typically authorize the card for the entire stay amount or a predetermined deposit to cover additional charges like room service, minibar usage, or damages. However, the actual payment is usually made during checkout, when the hotel will charge your card for the final amount minus any prepayments or deposits.
- Checkout payment: In many cases, hotels charge your card during checkout. They will calculate the total cost of your stay, including any additional charges or fees, and set the card on file. This includes the room rate, taxes, and any incidental expenses that may have occurred during your stay. The hotel will usually provide you with a detailed invoice outlining the charges.
- Incidentals and hold: Hotels often temporarily have your credit card during your stay to cover incidentals or potential expenses. This is a precaution if you use hotel services or amenities that incur additional charges. The hold amount varies depending on the hotel and can include a daily amount for incidentals like room service, phone calls, or access to the minibar. The hold is typically released after checkout, but the funds may take a few days to become available again in your account.
In my experience, when I travel to conferences or for a few days as a tourist, the hotel will charge me the total amount when I check out. However, when I have summer vacation at the hotel, and I stay more than seven days in the hotel, usually, the hotel expects prepayment at checking in and one more payment at checking out for additional costs and incidental charges.
How long does it take for a hotel to charge your debit card after checkout?
Usually, the hotel takes up to two business days to charge your debit card after you check out. However, in some hotels, the whole procedure can last one minute, and the hotel will charge your card immediately without holding it.
The timing of when a hotel charges your debit card after checkout can vary depending on several factors. In most cases, hotels will place a temporary hold (full three business days) on your card when you check in to cover potential expenses such as room charges, taxes, and incidental fees. This hold ensures the funds are available but does not immediately result in an order.
After you check out, the hotel usually releases the hold on your card and removes the pending authorization. Depending on the hotel’s policies and your financial institution, this process can take several hours to several days.
Once the hold is released, the actual charge for your stay will be processed. The time it takes for the order to appear on your debit card statement can vary, but it is typically within a few days. Again, this can be influenced by the hotel’s procedures and your bank’s processing times.
To get the most accurate information about a specific hotel’s policies, it is recommended that you contact the hotel directly or review its terms and conditions regarding payment procedures. Additionally, your bank or financial institution may be able to provide more information on its processing times for debit card transactions.
Can I use a prepaid credit card at a hotel?
Yes, you can use the prepaid card at some hotels. However, some hotels accept only credit cards because they can block the undetermined amount for the period of your stay hotel, can authorize the transaction once, and can charge you after your stay is completed without swiping again.
Some hotels accept prepaid cards, but they charge the total amount initially. If you spend more on food or anything else, you need to swipe the card again.
Sometimes, preparing for a hotel stay at the time of reservation might save you money. Usually, you will not be paid for a room till you sleep in it, but certain web companies and hotel brands, such as Marriott and Holiday Inn, now give discounts for booking ahead of time. Akin to purchasing an airline ticket, you will often pay in full for your hotel stay using a debit card when people reserve it, with little opportunity to receive a return if you don’t stay at the hotel. If you’re taking advantage of a bargain like this, think about how probable it is that you’ll have to postpone your vacation, how significant the reduction is, and whether you have the cash.
What hotels accept prepaid credit cards?
There is no rule that hotels accept prepaid credit cards. Therefore, you must ask each hotel if they accept prepaid cards and what additional money you need on your balance. Usually, hotels want you to have a more excellent balance on the prepaid card than the service cost.
What is a deposit for a hotel room?
A deposit for a hotel room represents partial payment rather than the entire amount to guarantee a space. For example, if you stay at a hotel for more than a week, the deposit value is usually 25%, but a few days are equal to one night’s stay cost.
This deposit generally equals one night’s stay and will be applied to your reservation when you arrive. The policies of the hotel, as well as, in certain circumstances, how quickly you cancel your reservation, determine whether or not such a deposit is refundable if you cancel. Ensure you are familiar with the hotel’s policies before booking a reservation.
For example, with various return methods, Airbnb and VRBO commonly provide arrangements in which you buy for at least that part of your stay online.
What will Credit and Debit Card Holds be for booking a room?
When you reserve your stay or check-in, the resort may place a fraud alert or “block” on your account, guaranteeing that the charges will be charged to your card. This is generally done when you arrive rather than when you arrange your stay, and you should check with the resort or booking source for details. The amount of this holding varies significantly between hotels. In addition, when you book a hotel, you will be asked to provide a prepaid debit card to cover extra charges such as customer services, compensation radio, or room repair, and your account will be traced.
A hotel will not necessarily charge the entire cost of any hold on your accounts. If your lodging isn’t what it was before, you’ll generally only be billed for it at check-in or checkout, as well as any incidental costs, with the deposit lifted soon after you check out.
Using such a checking account to check into a hotel might be dangerous since the hotel tends to hold cash in your account. To guarantee that a visitor does not depart before paying for their stay, the “card block” technique is used. If you don’t have any other option than to pay using your direct debit, you would like to take certain precautions to guarantee a seamless experience.
What Could be the Problems With Debit Card Holds?
When a motel adds a debit cardholder, the amount is large enough to pay for your entire stay. However, Varo says the resort may charge extra days and incidental expenses for honor bars, room service, and phone calls. The additional costs from the hotel’s holding may drain your account balance, leaving you with little cash to spend on the rest of your trip if you’re buying with direct debit and meticulously budgeting your vacation to prevent going over your limit.
Before you leave on your vacation, keep in mind you have the phone number of your bank’s department head in case you need a hold taken from your account. While most hotels will submit a confirmation mail if you ask for verification, you can usually speed up the process by phoning your bank. In addition, several hotels may put a hold on your cash when you make reservations. So always inquire if your money will be restricted when giving out your debit card information, especially when making reservations in resort areas.
Understand Bank and Hotel Policies
It’s usually a good idea to ask about card-blocking restrictions before organizing your vacation. Please inquire about the hotel’s acceptance of debit cards, the amount of money placed on hold for your visit, and the time the repository will continue. It’s doubtful that you’ll be able to persuade the restaurateur to modify the rules in your favor if the hotel is part of a large chain. Make arrangements to pay for your stay using the same credit card you used to check-in. If you check out with a new number, whether payment or debit, the block on your original debit card will last for only a few weeks or up to two weeks, and the clearance payment is due using the cash on your debit card at the time.
Check with your lender to discover what restrictions they have in place to limit the amount of money you may spend on your debit card. In addition, many banks provide direct deposit, which can help you avoid overdrafts from hotels, car rental companies, and even eateries, which have been known to reject payments if you’re planning a large group dinner.
Consider Using Traveler’s Checks
Bring extra cash in tourist checks to cover your everyday costs. Hotels usually need a debit card to pay in case you damage the room or rack up a lot of additional charges, and there is no reason you couldn’t afford nearly everything else with cash or passenger’s checks, such as food and amusement.
Call the front desk several hours before checkout and request that the hold on your money be removed immediately when you check out. Before you arrive at the front desk, they will close your bill, compile information on how much excess cash has been put on hold, and produce a release order. Don’t use the express checkout option. According to Frommer, the funds may take a few days to be released back into your bank.
You may usually pay for your hotel accommodation using a prepaid credit or debit card, but you may need a standard debit card to make the initial booking. Before making a reservation, be sure to check with the specific model.
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com