What is a Hotel Hold on Credit Card?
A hotel hold on a credit card is a temporary authorization or block placed on a credit card by a hotel to ensure that funds are available to cover potential charges. It is a common practice in the hospitality industry to protect against any incidental expenses that may arise during a guest’s stay.
How Does a Hotel Hold Work?
When you check-in at a hotel, the front desk will typically request a credit card for incidentals. They will then place a hold on a certain amount of funds on the card, usually the expected total cost of your stay plus an additional amount for incidentals such as room service or mini-bar charges.
The hold ensures that the hotel will be able to cover any charges that may be incurred during your stay. It is important to note that the hold is not an actual charge but a temporary authorization that reduces your available credit limit.
How Long Does a Hotel Hold Last?
The duration of a hotel hold varies depending on the hotel’s policy and the credit card issuer. Typically, the hold is released within a few days after check-out. However, it may take longer for the funds to become available in some cases, especially if you used a debit card.
Why Do Hotels Place Holds on Credit Cards?
Hotels place holds on credit cards to protect themselves against any potential losses. By placing a hold, they ensure that guests have sufficient funds to cover any additional charges or damages that may occur during their stay. It also allows them to verify the validity of the credit card.
How Much is the Hotel Hold Amount?
The amount of the hotel hold varies depending on the hotel’s policy. It can range from a few hundred dollars to several thousand dollars. The hold amount is typically based on the expected total cost of your stay plus an additional buffer for incidentals.
Can You Avoid a Hotel Hold?
In most cases, it is not possible to avoid a hotel hold if you are paying with a credit card. However, you may be able to minimize the hold amount by paying for incidentals in cash or using a different form of payment upon check-out.
Tips for Dealing with Hotel Holds
1. Understand the hotel’s policy:
Before making a reservation, familiarize yourself with the hotel’s hold policy. This will help you plan your budget accordingly.
2. Use a credit card with a higher credit limit:
If you are concerned about the hold amount affecting your available credit, consider using a credit card with a higher limit for your hotel stay.
3. Communicate with the hotel:
If you encounter any issues related to the hotel hold, communicate with the hotel staff. They may be able to provide clarification or assist in resolving any concerns.
Conclusion
A hotel hold on a credit card is a temporary authorization or block placed by a hotel to ensure funds are available to cover potential charges. It is a common practice in the hospitality industry and helps safeguard against any incidental expenses that may arise during a guest’s stay. Understanding the hotel’s hold policy and following the tips mentioned can help you navigate this process more effectively.