Tips for Explaining Hotel Authorization Holds to Guests (and Making It Stick)

I regret to inform you that I recently fell victim to not understanding an authorization hold. And from what from I've read in hotel forums, I'm definitely not the first guest to do this.

On a recent family vacation, our front desk agent very politely told me I would get an itemized bill at the end of my stay and requested a credit card to keep on file. I gladly handed her my Discover and went about my day.

And then later I saw it: a giant charge in my Discover app that I wasn't expecting. It appeared to be my total stay plus an extra amount (which I later learned would cover incidentals).

You see, in my mind, "keeping a card on file" meant she somehow took down my credit information and would have it handy to use at a later date. I now realize that sounds ridiculous – why wouldn't she just get and swipe my credit card at checkout then – but when you're tired from traveling, have two small screaming kids in tow, et cetera et cetera, you're not prone to rationalize and draw the right conclusions.

The point is, here's how I wished this would've played out...

"Hello, kind traveler. We're going to be putting an authorization hold on your credit card. Let me explain what this means."

And then the front desk agent would've handed me the below information as a handout, so I could follow along and have the information available to reference later.

 

What is an authorization hold?	It's important to note that an authorization hold is not a charge. The hotel will temporarily place a hold on your credit card at the time of check-in. Consider it a placeholder for a later charge or a temporary swipe that won't process.
Why do hotels do holds?	A hold is common practice in the hotel industry to guarantee payment for your stay (your room and associated fees), as well as potential incidentals (such as room service or damages) that may occur during your stay. The authorized funds are not immediately deducted but are effectively reserved for the hotel.
What will I see on my credit card transaction history during my stay?	Immediately following check-in, you will see a charge with a "processing" or "pending" status. Typically, a charge will eventually be processed and move to a "posted" or "completed" status, deducted for the merchant, and officially applied to your statement. This is what happens when you, for example, swipe your card at the grocery store to buy milk. In the case of a hotel hold, however, the charge won't move or deducted immediately. Instead, the charge will remain in the processing/pending status until you check out.
What will I see on my credit card transaction history after my stay?	At check-out, you will receive an itemized bill indicating the final amount due to the hotel. This is the amount that will be processed, deducted for the hotel, and be applied to your statement. The hold will remain in the processing/pending status until your network eliminates the temporary charge from your transaction history. This can take up to two weeks.

 

And for good measure, she would've had me sign this to acknowledge I've read and understood the policy.

Take it from a lay(wo)man: what may seem painfully obvious to your staff may not be obvious to your guests. You may also have grown tired of explaining holds time and time again, but it's the first time your guest will hear it.

By taking the time up front to clarify what will happen so your guests expectations can be set, you'll hopefully save a lot of time and stress throughout the stay.