{"id":131857,"date":"2024-09-06T06:03:04","date_gmt":"2024-09-06T06:03:04","guid":{"rendered":"https:\/\/www.itilite.com\/blog\/\/"},"modified":"2025-03-04T10:39:29","modified_gmt":"2025-03-04T10:39:29","slug":"unauthorized-credit-card-charges","status":"publish","type":"post","link":"https:\/\/www.itilite.com\/blog\/unauthorized-credit-card-charges\/","title":{"rendered":"Can Hotels Charge Your Credit Card Without Authorization?"},"content":{"rendered":"
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Hotel payments can be a significant challenge for travelers and business professionals alike. According to the Global Business Travel Association<\/a>, the majority of business travelers have faced issues related to hotel payments. Unauthorized charges are a common concern. The finance industry also reveals that 60% of credit card disputes involve unauthorized credit card charges, making it a prevalent issue. <\/p>\n\n\n\n

Understanding credit card authorization<\/a><\/strong> becomes crucial as travelers become increasingly wary of these practices. Whether it’s additional fees, security deposits, or unexpected charges after check-out, many travelers have been caught off guard by unauthorized charges. <\/p>\n\n\n\n

This leads to financial stress and erodes trust between travelers and hotel establishments. In this blog, we will explore what credit card authorization entails, why it is essential for both parties and the rights of travelers regarding unauthorized charges.<\/p>\n\n\n\n

Let us understand if hotels can charge your credit card without authorization.<\/p>\n\n\n\n

What is Credit Card Authorization or CC auth?<\/h2>\n\n\n\n

Credit card authorization (CC auth)  is when the hotel verifies a guest\u2019s credit card information before completing a transaction. It involves obtaining approval from the credit card issuer to confirm that the card is valid and has sufficient funds or credit to cover the expected charges. <\/p>\n\n\n\n

This authorization ensures that the hotel can secure payment for the services that may arise during the guest’s stay. For example, room charges, amenities, and any incidental expenses. <\/p>\n\n\n\n

During the authorization process, the hotel may place a hold on a certain amount of funds on the guest’s credit card. This is not a charge but a temporary hold to guarantee the funds are available. The amount held can vary depending on the hotel’s policy, stay length, and booking type.<\/p>\n\n\n\n

Once the guest checks out, the hotel will finalize the transaction by charging the amount incurred during the stay, and the hold will be released.<\/p>\n\n\n\n

How to Avoid Unexpected Charges In CC Authorizations Sent to Hotels?<\/h2>\n\n\n\n

Let\u2019s say you\u2019ve done everything right- booked a fully prepaid stay and sent a clear credit card authorization stating it\u2019s for incidentals only. You have even highlighted it in your email to the hotel. Everything is set, but your finance team calls: \u201cWhy is there a $5,000 hold on our corporate card?\u201d <\/p>\n\n\n\n

The front desk mistakenly authorized the card for the entire stay plus incidentals, tying up a huge portion of your company\u2019s credit limit. This only leads to frustration when the hotels respond that they can’t do anything about it, and it will take 5-7 days to refund the amount. <\/p>\n\n\n\n

Sounds familiar, right? These unexpected authorizations are more than an inconvenience- they create cash flow issues, operational delays, and frustrated travelers.<\/p>\n\n\n\n

So, how can you avoid these unexpected charges?<\/p>\n\n\n\n

1. Clearly Communicate Payment Instructions<\/h3>\n\n\n\n

When sending a credit card authorization (CCA) form, explicitly state that the card is for room, tax, or incidentals only. Add notes in the reservation and email confirmation to reinforce these instructions. <\/p>\n\n\n\n

Hotels typically allow guests to use different payment methods for different charges, such as:<\/p>\n\n\n\n