When Do Hotels Charge Your Card? A Detailed Look At Hotel Payment Policies

Booking a hotel stay can be stressful if you’re unsure about when your card will be charged. Will they put an authorization hold at booking or wait until check-in to collect payment? Here’s a quick answer: Most hotels will authorize your card at the time of booking but will not post charges until your stay is completed.

However, policies vary between hotel brands.

In this comprehensive guide, we’ll explain exactly when major hotel chains charge your card so you can avoid any surprises at checkout. With knowledge of the most common payment timelines, you can better manage your travel budget and avoid unnecessary holds on your account.

Upfront Deposits

When it comes to hotel payment policies, one common practice is requiring upfront deposits. This is done to secure the booking and protect the hotel from potential cancellations or no-shows. Let’s take a closer look at some scenarios where upfront deposits may be required.

Non-refundable rates

Some hotels offer non-refundable rates for guests who are certain about their travel plans. In these cases, the hotel charges the full amount of the reservation upfront, and the payment is non-refundable. This is a popular option for travelers who want to save money and have a firm travel itinerary.

However, it is important to carefully consider this option, as once the payment is made, it cannot be refunded under any circumstances.

Group bookings

For group bookings, hotels often require upfront deposits to secure the rooms for the entire group. This is to ensure that the hotel can accommodate the group and prevent any last-minute cancellations that could leave rooms vacant.

The deposit amount may vary depending on the size of the group and the hotel’s policy. It is advisable to check with the hotel in advance and understand their deposit requirements for group bookings.

Peak times

During peak travel seasons or popular events, hotels may implement stricter payment policies, including upfront deposits. This is because demand is high, and hotels want to ensure that guests are committed to their reservations.

By requiring upfront deposits, hotels can secure bookings and avoid any potential revenue loss due to cancellations or no-shows. It is important to be aware of these policies when planning a trip during peak times to avoid any surprises.

It’s worth noting that hotel payment policies can vary between different establishments and even within the same hotel chain. It is always a good idea to review the terms and conditions of your booking and contact the hotel directly if you have any questions or concerns about their payment policies.

Authorization At Booking

When you make a reservation at a hotel, it is common for the hotel to require a valid credit card to secure your booking. This is known as an authorization at booking, and it allows the hotel to verify the card’s validity and reserve the necessary funds to cover your stay.

Held funds

During the authorization process, a certain amount of funds will be held on your credit card. The specific amount can vary depending on the hotel’s policies and the length of your stay. Typically, the held funds will be equivalent to the cost of one night’s stay, although some hotels may hold a larger amount to cover potential incidentals.

For example: If you are staying at a hotel with a nightly rate of $100, the hotel may place a hold of $100 on your credit card when you make the reservation.

Length of hold

The length of time that the funds are held can also vary from hotel to hotel. In most cases, the hold will be released within a few days after your stay, once the hotel has confirmed that there are no additional charges or damages.

However, it’s important to note that some hotels may hold the funds for a longer period, especially during busy seasons or for certain types of bookings.

Pro tip: It’s always a good idea to check the hotel’s payment policies before making a reservation, especially if you need the held funds to be available for other expenses during your trip.

Impact on available credit

While the funds are being held, they will be temporarily unavailable for other purchases on your credit card. This means that the held amount will reduce your available credit until the hold is released. It’s important to keep this in mind when managing your finances during your trip.

Did you know? Some credit card companies offer temporary increases in credit limits for travelers, allowing you to have more available credit during your stay at a hotel.

Charges At Check-In

When it comes to hotel payment policies, understanding when charges are applied to your credit card is crucial. One common scenario is when you check in to a hotel and provide your credit card information.

At this point, the hotel may authorize your card for the full amount of your stay, including any additional charges such as incidentals or room upgrades.

Extended Stays

For extended stays, hotels may charge a portion of the total amount upfront, usually for the first night or a percentage of the entire reservation. This practice helps ensure that the hotel has a guarantee of payment in case of a cancellation or no-show.

It’s important to note that some hotels may have specific policies for extended stays, so it’s advisable to check with the hotel directly or refer to their website for more information.

Pay at Check-Out Hotels

Some hotels allow guests to pay for their stay at the time of check-out. In these cases, the hotel may still require a credit card to be provided at check-in for incidentals or damages, but the actual payment for the room is settled when you leave.

This payment option offers guests more flexibility and the opportunity to review the charges before finalizing the payment. It also allows for any adjustments or disputes to be resolved before the guest leaves the hotel.

International Policies

It’s important to be aware that payment policies may vary between hotels in different countries. Some international hotels may charge the full amount of your stay at the time of booking or a deposit to secure the reservation.

Additionally, currency exchange rates may apply when paying with a credit card overseas. It’s always a good idea to check with the hotel in advance and understand their specific payment policies, especially when traveling abroad.

For more detailed information on hotel payment policies, you can visit reputable travel websites such as Booking.com or Expedia.com. These websites often provide comprehensive information about hotel booking and payment processes.

Incidentals

When staying at a hotel, you may have noticed that your credit card is charged for more than just the room rate. These additional charges are known as incidentals. Understanding what incidentals are and when they are charged can help you plan and budget for your hotel stay more effectively.

What are incidentals?

Incidentals refer to any additional charges or fees that are not included in the base room rate. These charges can vary depending on the hotel, but common examples include room service, mini-bar purchases, spa treatments, parking fees, and Wi-Fi access.

The purpose of charging incidentals is to cover any extra expenses you may incur during your stay.

When incidentals are charged

Hotels typically charge incidentals at the time of check-in or check-out. Some hotels may place a hold on your credit card for the estimated amount of incidentals, while others may charge a flat fee per night.

It’s important to note that while the charges are authorized, they may not be immediately deducted from your account. The actual payment is typically processed at the end of your stay.

In some cases, hotels may charge incidentals on a daily basis. For example, if you order room service or use the mini-bar, these charges may be added to your bill each day. It’s essential to review your final bill before checking out to ensure accuracy and address any discrepancies.

Avoiding excessive incidental holds

While incidentals are a standard practice in the hotel industry, it’s crucial to be mindful of excessive holds on your credit card. These holds can tie up your available credit and may take several days to be released after your stay. To avoid this, consider the following:

• Ask about the hotel’s incidental policy before booking
• Avoid using the mini-bar or room service if possible
• Use your own Wi-Fi or find free alternatives
• Check your bill regularly during your stay to catch any unexpected charges

By being aware of the incidentals charged by hotels and taking steps to minimize them, you can have a more seamless and budget-friendly hotel experience.

Cancellation Policies

Refund timeline

When it comes to cancellation policies, the refund timeline can vary from hotel to hotel. Some hotels may offer a full refund if you cancel within a certain timeframe, while others may only provide a partial refund or no refund at all.

It’s important to carefully review the hotel’s cancellation policy before making a reservation to understand the specific refund timeline.

For example, a hotel may offer a full refund if you cancel at least 48 hours before the check-in date. However, if you cancel within 48 hours of the check-in date, you may only receive a partial refund or no refund at all.

It’s always a good idea to double-check the cancellation policy and make note of any specific deadlines.

Penalties

In addition to the refund timeline, hotels may also impose penalties for cancellations. These penalties can vary depending on the hotel’s policy and the timing of the cancellation. Common penalties may include a percentage of the booking cost or a flat fee.

For example, if you cancel within 24 hours of the check-in date, the hotel may charge you a penalty equivalent to one night’s stay. However, if you cancel well in advance, there may be no penalties or only a small fee.

It’s important to be aware of these penalties and factor them into your decision-making process. If you’re unsure about the cancellation policy or the potential penalties, don’t hesitate to reach out to the hotel directly for clarification.

COVID-19 exceptions

In light of the ongoing COVID-19 pandemic, many hotels have implemented flexible cancellation policies to accommodate travelers’ changing plans. These policies may include exceptions and relaxed penalties for cancellations due to COVID-related reasons.

For instance, some hotels may offer full refunds or the option to reschedule if you or a member of your travel party tests positive for COVID-19 or if there are travel restrictions imposed by government authorities.

It’s important to check the hotel’s website or contact them directly to inquire about their specific COVID-19 cancellation policy.

Keep in mind that COVID-19 policies can vary greatly from hotel to hotel, so it’s crucial to review the terms and conditions before making a reservation. Additionally, it’s advisable to consider travel insurance that covers trip cancellations or interruptions due to COVID-19.

Remember, understanding a hotel’s cancellation policy is essential to avoid any unexpected charges or disappointments. So, take the time to familiarize yourself with the refund timeline, penalties, and any COVID-19 exceptions before finalizing your reservation.

Conclusion

Understanding when exactly hotels will charge your card can prevent financial headaches and give you confidence when booking travel. While policies vary, most major hotels will authorize your card at booking and collect payment after checkout.

We hope this guide has shed light on the most common hotel payment practices so you can manage your finances accordingly.