Why do hotel credit card holds last so long?
Editor's Note
When you book a stay at a hotel, you may notice a large hold on your credit card account as a pending charge. While the charge is only temporary, it can lower your purchasing power for the duration of your trip.
Hotels aren’t the only kind of merchant to use pre-authorization holds to ensure funds for a potential charge, but they typically hang around for the longest time.
Let’s discuss what these holds are used for and why they can take so long to clear from your account.
What is a credit card hold?
A credit card hold is a request from the merchant to pre-authorize funds on your credit or debit card pending a final transaction. Car rental companies, gas stations and hotels are three of the more common merchant types that will put a hold on your account.
The precise process for hotel credit card holds can be confusing since multiple parties are involved with their own roles and rules in the transaction.
When you check into a hotel, you’ve probably noticed that you are asked to provide a credit card for incidentals and any room service and/or minibar charges. This credit card is what the hotel will charge in the case of any damage to your hotel room.
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.
That pending charge takes up part of your credit card’s spending power, which can be limiting when you are on a trip and need that additional spending power to pay for dining and other activities.
Related: 5 things you need to know about debit and credit card holds
Why do hotels use holds?
Payment networks such as Visa or Mastercard require a hold because of how hotel payment processes work. Any time a merchant processes a card before the final charge amount is known, your card network will likely require a hold to ensure that you have enough buying power in your account to pay off a reasonable charge.
This limits the payment network’s risk of a charge being met with insufficient funds and possibly a chargeback.
Why can hotel holds take so long to resolve?
The amount of time a hotel hold may stay on your account varies from hotel to hotel. Generally speaking, a hold will be released within 24 hours of checking out. But sometimes, it can take up to a week for the charge to disappear.
Why does this happen? You might be tempted to blame the hotel, but it actually comes down to the card issuer.
Payment networks set rules for how long an issuer can set aside a hold. For example, Visa cards can have a hold last for up to 30 days, while American Express cards only allow holds for up to seven days.
And while payment networks set limits, the issuers each have their own standards in place for how long a pre-authorized charge may stay pending on your account.
So even after a hotel notifies a card issuer that a hold is no longer required pending an official charge, an issuer may still take a few days to remove the original pending charge.
Bottom line
Credit card holds are, unfortunately, just a part of using a debit or credit card with certain merchants like hotels. The only way to avoid a hold altogether is to use cash, but then you lose out on credit card points and other potential benefits that come with swiping your card.
To help ensure your hold is released as soon as possible, use the same credit card for the hold as you do for the room charge. Conversely, using two separate payment methods can take longer for the pending hold charge to be removed.
Related: Quick Points: 3 reasons you need a credit card with your favorite hotel brand
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.