Why Do Hotels Hold a Deposit (and When Do You Get It Back)?

When you check into a hotel, you’ll almost always be asked for a credit card, and that’s because hotels usually place a temporary hold on your card. This isn’t an actual charge, but rather a pre-authorization that acts as a deposit, covering potential extra costs during your stay.

Even if you’ve prepaid for your room or are using loyalty points for a free night, you can still expect the hotel to ask for a credit card to place this temporary hold. It’s standard practice across most of the industry.

Hotels use these deposits as a safeguard for both guests and their property. The exact amount of your final bill isn’t known at check-in, so this hold accounts for any incidentals or even damages that might occur or hidden fees. Think about those mini-bar snacks, room service orders, or even an accidentally broken lamp.

Why must I give a card for a hotel deposit, and when am I refunded?

The hold encourages guests to honor their reservations and treat rooms with care, which I think is a fair expectation. The amount a hotel puts on hold can vary quite a bit, typically ranging from $20 to $200 per night above the cost of your room. This figure depends on the hotel’s specific policy and its location.

It’s important to understand the difference between a pre-authorization and an actual charge. A pre-authorization simply blocks funds on your credit card; the money doesn’t leave your account. A true deposit, on the other hand, is an actual charge that the hotel processes and then refunds after you check out. This is better than scammy Airbnb fees.

Most hotels opt for the pre-authorization because it’s less intrusive for guests. This hold does, however, reduce your available credit limit, so it’s something to keep in mind if you’re close to your credit limit or planning other large purchases.

Once you check out and the hotel staff inspects the room, if everything looks good and there are no additional charges, the hold should be released. The tricky part here is the timing. While the hotel initiates the release quickly, it can take anywhere from three to ten business days for the funds to reflect back in your account.

This delay isn’t usually the hotel’s fault; it’s mostly due to your bank or credit card provider’s processing times. If you’re still seeing the hold on your statement after about a week, it’s a good idea to contact your credit card issuer to follow up.

Hotels use these deposits for several key reasons. They minimize no-shows and last-minute cancellations, since guests are more likely to honor a reservation if there’s a financial commitment involved. They also protect against potential damages or policy violations, like smoking in a non-smoking room, and they cover incidental charges, letting guests enjoy amenities like the minibar or spa services without needing to pay immediately.

To make sure your stay is as smooth as possible, I always recommend asking about the hotel’s specific deposit policy before you book or at check-in. Find out the amount of the hold, whether it’s a pre-authorization or an actual charge, and the typical timeframe for its release. Being informed upfront can save you a lot of headaches later on.