Why Do Hotels Need a Credit Card When Booking? | Chase (2024)

FAQs

Why Do Hotels Need a Credit Card When Booking? | Chase? ›

Some hotels make it a requirement to provide your credit card information online upon booking or at check-in. This is because it helps ensure the hotel can charge you for various fees, such as cancelation fees, damage to the room or theft.

With a credit card on file, the hotel is able to charge cancellation fees. Covering damage, theft or other incidental charges. Most hotels require a security deposit to ensure you won't damage the room or walk off with the TV. Many hotels require your credit card on file to keep you on the hook for theft or damage.

By taking your card information, hotels get that assurance. They can also contact you about changes to your reservation and charge cancellation fees. To charge for potential damages or theft: The card which hotels keep on file is used in case the room has any damage or missing items.

It is normally safe to give your debit card information while making a hotel reservation, however there are several security measures you should take: 1. Use trustworthy Websites or Booking Services: Use well-known, trustworthy websites or booking services when making an online hotel reservation.

You can book a hotel room without a credit card by using a debit card in most cases. Many hotel chains will also accept prepaid cards, though they are more likely to do so at check-in or check-out than at the time of booking.

Some major hotel brands will accept a debit card for reservations, and some will accept alternate forms of payment like personal checks or wire transfers. But in general, most major hotel brands require either a credit or debit card in order to make a reservation.

Using the form, the cardholder (via signature) authorizes the card to be charged throughout the guest's stay. By getting the cardholder's consent, the hotel protects itself from transaction disputes and ensures a smooth payment process for their guest.

Sharing cardholder data (CHD) over email is not smart for the hotel nor you. If they do not have a method to collect that information securely via their booking system then it's probably better to call them and provide the card number verbally.

Credit, debit and prepaid cards – Visa, Mastercard, American Express, China UnionPay, JCB, Diners, Discover and Carte Bancaires. Global payment methods – Paypal, Apple Pay, Google Pay and Alipay. Trusted local payment methods – WeChat, iDeal, Sofort, Venmo, Bancontact, Blik and Vipps.

In an effort to protect themselves, hoteliers will require some form of documentation provided by the cardholder to ensure there is permission to pay for the room and what types of charges should be applied.

How much do hotels hold on a debit card? ›

It is common practice in the hotel industry to request a credit card at check-in and place a temporary hotel credit card hold on the card. This temporary hold is generally around $20 to $200 higher than the outstanding balance on your hotel room.

Most prepaid cards have a network logo (Visa, MasterCard, American Express, or Discover) and can be used anywhere that brand is accepted. Some examples include grocery stores, department stores, gas stations, hotels, and for online shopping.

Credit control refers to measures hotels take to ensure guests pay their bills in full. Key measures include establishing credit policies, verifying guest payment methods during reservations and check-in, monitoring high balances during stays, and collecting payments at check-out.

Each hotel will have its own specific hold amount, generally $50-$200, on top of your room rate (including taxes and fees). While the hotel won't officially charge you until after you check out, the issuer will put aside the hold amount in the interim to ensure you can cover a potential charge.

Your card may be declined for a number of reasons: the card has expired; you're over your credit limit; the card issuer sees suspicious activity that could be a sign of fraud; or a hotel, rental car company, or other business placed a block (or hold) on your card for its estimated total of your bill.

The preauthorized charge is typically released after the customer checks out of the hotel and any additional charges have been processed. There are a few things to keep in mind when it comes to hotel preauthorized charges: The amount of the hold may be higher than the actual cost of the room and any additional charges.