Credit card authorization for a hotel allows a company to give the hotel permission to charge an employee's card for their stay and expenses. The company fills out an authorization form with relevant details and sends it to the hotel. This process enables the employee to travel without carrying the company's physical credit card, ensuring seamless payment handling and convenience.
Hotels require credit card authorization form when charges apply to a card not physically presented by the guest at check-in.
For example, Christina travels to San Francisco on behalf of her company, and Robert, her manager, books the hotel for her. In this case, Robert will ask the hotel to charge his card instead of Christina's so that she does not have to pay at the hotel. CC auth is needed here as she is not carrying the card used for the booking, which should be charged.Â
Credit card authorization is not needed if Christina checks in and carries the card with her.Â
Yes. Credit card authorization is secure because you can always show the authorization you passed and apply for any chargebacks on your card.
Your credit card may be declined for several reasons. It could be because of insufficient funds, an expired card, incorrect information entered, suspected fraudulent activity, etc.
To avoid fraud on credit cards sent to hotels, use these precautions:
To reduce check-in denials due to card authorization issues:
An authorization hold typically lasts between 7 to 10 days, depending on the hotel's policy and the card issuer. The specific duration can vary, but it's generally released once the final charge is settled or if the transaction is canceled.
If an authorization hold doesn't disappear, contact both your bank and the hotel to inform them that the charges have been settled. This can help ensure the hold is promptly released, and any potential issues are resolved.
Pre-authorization is a common practice in the hospitality and car rental industries. It ensures that funds are available for additional charges such as cleaning, room service, damages, or fines.Â
For hotels, pre-authorization streamlines the check-in process by removing the need to process extra payments manually.Â
In car rentals, pre-authorization secures sufficient funds to cover potential damages, estimated rental charges, and additional fees like fuel charges. The held funds are released once the rental period ends and the vehicle is returned.
To solve the credit card authorization process for hotel payments, follow these steps:
By following these steps, you can ensure a smooth credit card authorization process for hotel payments, avoid delays, and ensure secure transactions.Â
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