Is hotel deposit deducted from available limit in credit card?
Most hotels I think require you to deposit by credit card when you arrive at your hotel. For example, in my recent trip I got charged RMB 10,000 for 14 days stay - that's about 1,500 USD.
Is this deposit transaction recorded in credit card at the time of the arrival? And is it deducted from the available limit of the card?
My credit limit is only around USD 5,000 and I hate the deposit takes so much chunk of the available limit.
Does the deduction occur? Or does it depend on the credit card company, hotel, or anything others?
And if it is deducted, can I ask for not taking so much chunk of the limit, possibly by asking for less deposit? Or is there any other ways to cope with the issue?
For your information I don't use anything subject to the deposit (e.g. minibar or laundry).
Best Answer
While the hold does come off your card's credit limit, there are a TON of variables. In short I would consider it money spent at check in, but that has not always been the case.
A common example for me is:
- Check in places a hold, for the entire stay
- The hold is shown on my card.
- The hold is removed from my card (usually a couple of hours), and my full credit limit is available
- I enjoy my trip. I do stuff. Any orders for room service, dry cleaning, or "charge it to the room" Show as a new hold on the credit card for a couple of hours then fall off if they are large expenses, or don't show at all.
- The Morning before checkout I get a bill under the door, with an itemized bill.
- At checkout I determine how to pay the bill, if its the same card, or cash, or different means.
- A hold is placed on the card of choice for the full amount, then finally
- 2-3 days later, the charge goes through for the amount on the bill.
I travel a lot, and I always use the same card at the same brand of hotels. So that may have a lot to do with it. 9/10 I never even have to present my card. I don't know if customer loyalty makes a difference. I know it does when booking (they no longer ask for my card) and may services (they just charge to the room, and don't ask), but I can't tell you if the hold drops off because of the card, the hotel, my habits, or a mixture of all three.
I am pretty sure the hold and wait between 7 and 8 is to check the room for damages and the like.
Pictures about "Is hotel deposit deducted from available limit in credit card?"
Do hotels charge your card right away?
If you prepay the room partially or fully, the hotel will likely charge your card for that amount right away. In other cases, depending on the hotel's policies, the hotel might charge you for a room deposit when you book and then place holds for the rest of your room fees and incidental charges once you check in.What does it mean when a hotel takes a deposit?
When booking a reservation for a hotel room, a guest may be asked to make an advance deposit, which is money paid, usually by check or credit card, by a guest that is generally equal to one night's lodging fees.Do hotels charge a deposit?
Most hotels place a hold on your credit card, according to Dale Blosser, a lodging consultant. The amount varies, but as a rule, it's the cost of the room, including tax, plus a set charge of between $50 and $200 per day.Do you pay for the day you check out of a hotel?
You pay , as any hotel, when you check out. They will take your credit card to insure payment and check that you are signer.What happens when you exceed your credit card limit?
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