Why hotel needs credit card details?

The reason why hotel needs a credit card during check in is to guarantee of a payment for the stay. When a reservation was not pre-paid, the guest needs to pay for it during check in or check out.

Setting a bill during check out

If the guest would like to pay for the room during check out, he/she needs to give the hotel guarantee that it will be possible to charge him/her. Therefore guest has to give a credit or debit card for pre-authorization during check in. Pre-authorization is a blocking certain amount of money on the payment card. During check in receptionist should block money on the payment card for the amount which equals the cost of all the stay.

Open hotel credit

When the guest is checking in to the hotel, he /she may be asked about using extra services and a way of payment for that. In case the guest would like to use extra hotel services and close everything at one hotel bill, the receptionist will need to block some money on the payment card as a deposit for later payment.

Will the blocked money return?

This is a very common question when it comes to making a pre-authorization on a credit/debit card. Will the blocked money return to the account? There are a few possibilities:

• return of all the blocked money – the money can be fully unlocked in case the guest chose a different way of payment during check out (e.g cash, another payment card);
• return of some amount of blocked money – in case the money will be blocked as a deposit for extra services and guest will use services at an overall less cost, the surplus will be returned. To make it clear: blocked money is for 300 euros, guest uses services for 200 euros, 100 euros going to be back and 200 euros going to be charged;
• no money return – when the guest wants to pay during check out with the same payment card which was used for pre-authorization, it is going to be completed. It means that blocked money will change for charged money.

To sum up, the hotel needs credit card of a guest to avoid being cheated by guests and to reduce money loss. When having the payment card details, the hotel can pre-authorize money to be sure that the guest will be charged for all expenses. This helps to avoid the situation that guest will steal something or run away without paying (purposely or accidentally). Even without the presence of a guest, the hotel will be able to charge him/her for everything.

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