pre-authorization????

[smileyeagle1021]

The manager took pity on me (I wasn't yelling or anything, just weepy) and somehow released the authorization. Don't have a clue how he did it, but he did.

actually depending on the software it's not that hard... at least with softhotel all I have to do to release any holds is post enough payment for the estimated remaining balance to show zero, if that hotel's system is the same all the manager had to do was change it to prepaid status and run the voucher through then instead of waiting until check out like is normally done.

And Difdi, I may point out, the hotel I work at says on the check in form that you sign that a hold may be placed on the card and most hotels I've staid at have had similar small print... if the hotel you staid at didn't then I'd say by all means, please contact the AG in their state, go in all guns blazing, they are scum, otherwise, and I hate to say it, but you are no better than the SCs we complain about not reading.

[Evil Queen]

All the hotel's I've worked for (except the Mom and Pop hotel) has over authorized by 10-20%. But the authorizations release the same day you check out.

However, if you checked in on a Friday and checked out the next morning (Saturday), the authorizations will not drop until Monday because the banks are closed. That's just the way banks are. Sorry, but it is.

There's a reason Hotels do the things they do.

@Daisy: I'm sorry the hotel you stayed at authorized for the cost fo the stay rather then just incidentals. Since they had the voucher in their hands, they shouldn't have done that. Hopefully it hasn't turned you off of staying at all hotels.

[SpyOne]

But, why do they freak out when the computer does pre-authorizations?

Just a guess: because the VISA card they gave you is their debit card?

As I understand it, "pre-autorization" is just a way of putting a "hold" on some of a person's credit. You haven't actually charged the card yet, so they don't owe interest on it yet or anything, but their credit limit is effectively reduced by that amount as you have "dibs" on that money.

But how does that work when it's a debit card?
If my booking a hotel room now for my vacation 3 months from now is going to freeze part of my bank account, I may have trouble making my rent this month. Just because I fully expect to have enough money to cover my room three months from now does not mean I have it now.
And if you take an extra 15% without telling me, I am likely to be very angry. I have a budget for this trip, and enough money in my account to cover my room, my rental car, my food, and the activities I plan on doing. Your undisclosed "security deposit" means I'm in town with a car and place to stay, but without enough money for food during my stay. If I had known ahead of time, I might have budgeted more money, or in the alternative realized I couldn't afford the trip.


I'm just saying: I can see how someone not familiar with how hotels traditionally work (pre-authorize, extra in case of damages, etc) could be caught completely off guard, and what to you looks like "business as usual" can look an awful lot like "theft".

Personal anacdote: the only time I have taken a hotel room and not paid cash, I actually used Priceline.com. I booked the room well in advance, and paid for it when I booked it to lock in the special rate. While I was required to present my debit card as ID when I checked in (to verify it was the same one that had paid for the room), my pre-payment was the only transaction the hotel posted to my card: no pre-authorization, no security deposit, no 15% extra. And this was an upscale hotel of business suites, not an EconoLodge. So not every hotel acts as yours does, and someone with experience staying in hotels might still be shocked at how things work there.

[smileyeagle1021]

Just a guess: because the VISA card they gave you is their debit card?

-snip-
3 months from now
-snip-
extra 15%
-snip-

Priceline.com. I booked the room well in advance, and paid for it when I booked it to lock in the special rate. While I was required to present my debit card as ID when I checked in (to verify it was the same one that had paid for the room), my pre-payment was the only transaction the hotel posted to my card:

-snip.

first, most likely

second, almost no hotel will place a hold that far in advance... if a hold is placed it's done at check in

third, most hotels will give the option of blocking all incidentals in the room which will avoid the need for an extra 15% pre-auth, most of them though you have to ask for it specifically, it's not something they will ask you about (because of course they want you to use the incidentals that the hotel offers)

and fourth, FOR THE LOVE OF GOD WE DO NOT BILL FOR PRICELINE, PRICELINE BILLS AND SENDS US THE MONEY THROUGH THEIR DIRECT BILL ACCOUNT

sorry, that wasn't aimed at you spyone... I've just been dealing with a lot of special people who want to argue with how priceline (and the other prepay sites work)

and actually with a prepaid it makes sense that nothing would be held to the card, because the computers do a pre-auth based on what the estimated remaining balance is... and if you've already paid for it, that would be zero, so zero plus any percentage will still be zero that they would pre-auth.

[Bandit]

I've been caught in a situation like that on a rather whirlwind business trip - with a corporate credit card.

Basically, since I was renting cars, and hotel rooms in 4 different cities in 4 days, and had been on another week-long trip two weeks before (i.e. no bill had come through), by the time it came to check into the last hotel, all the pre-authorizations all came to a head at once.

I was not a happy panda dealing with both the Credit Card company and the Hotel at the same time. Ended up passing the gal from the CC call centre over to the clerk to get it sorted out.

And yes, I used "How can we make this work?" and "How can you help me?" instead of "FIX IT NOW!". Seems I can do the puppy-eyes over the phone when I'm real tired and have just been shoe-horned out of yet another airplane seat. Also helps that it was a corporate card.

Turns out the auth would have expired the next morning from the car rental place.

When I'm traveling for myself, I hate the pre-auth as I may want to make a side trip, but I always cover with the plastic and pay with the debit.

B

PS: When the bill for that month finally came it, it was for just a tick over $10k. And that's with staying at cheaper hotels! (and a travel agent's mistake that had me both in Nashville and Las Vegas at the same time. )

[thehippie777]

I have used my debit card all but once when booking/renting hotel rooms. I have never had any issues.

Oh & we only preauthorize for 3 reasons: 1)Guest asks us to prior to arrival 2)When a guest on plastic checks in 3)When a guest ends up being a NoShow

[ThePhoneGoddess]

Banks do pre-authorizations for every single charge they get. If you look up your bank statement on line and you have pending charges, those are authorization holds. The bank is holding the money expecting the merchant to send them the paperwork for that charge. Once they get the paperwork, the charge is then put through and becomes permanent. If they don't get the paperwork within a few days, they drop the hold. It amazes me how few people understand that.

I deal with people freaking out about authorization holds all. night. long. Usually some variation of "You stole my money and didn't give me my minutes!" or "What do you mean you didn't approve the charge?! You took the money!"

If we denied a charge, we can get an authorization hold taken off by calling the bank and giving them the authorization code from the charge and telling them it did not go through. Otherwise it's usually 2-3 business days for it to come off by itself.

[Jack Doe]

Maybe it's just me, but I will NOT do ANY business which puts a hold of any amount over the agreed upon amount. Pay at the pump? Hell no. Gonna charge me 105-120% at a hotel? You'll find a chargeback to fight. If you want, I will assist you in verifying funds available with my bank, but I'll be damned if you're going to hold anything beyond the contracted amount.

What got me like this was when I went to D.C. on a TDY about three years ago and stayed in a Holiday Inn Express. $71/night room, hold for an even $100 on my CC (government issued.) Pissed me off when I went out to get some dinner and the debit card I'd been carrying was declined. Went back, raised holy hell, and the manager released the hold (I had him immediately charge the appropriate amount.) Eight weeks later, I took three days leave before going back. Flew my (then) fiancee up and we spent two nights at the Ritz-Carlton, Pentagon City (just outside DC.) They took my (personal) CC, ran it for a $1 "Does the card work" check, and checked me in. So...why did the bargain hotel put a hold of 40% on there, when the $419/night hotel just verified the card? It tells me that many 'bargain' hotels either have crap policies or do not trust their customers.

[smileyeagle1021]

It tells me that many 'bargain' hotels do not trust their customers.

no we don't... when on a good day we'll have $200 in damages and my personal record was $800 to one room... yeah, forgive us for not being trusting

that said... it's not hard to avoid... just ask for the payment to be run in advance and have all incidentals done on a cash basis only (ie, you want to use it you come down to the desk to pay for it) and there will not be a hold places (at least at the chain I work at, if there is a zero balance on the account and incidentals are turned to cash only).

[thehippie777]

Maybe it's just me, but I will NOT do ANY business which puts a hold of any amount over the agreed upon amount. Pay at the pump? Hell no. Gonna charge me 105-120% at a hotel? You'll find a chargeback to fight. If you want, I will assist you in verifying funds available with my bank, but I'll be damned if you're going to hold anything beyond the contracted amount.

What got me like this was when I went to D.C. on a TDY about three years ago and stayed in a Holiday Inn Express. $71/night room, hold for an even $100 on my CC (government issued.) Pissed me off when I went out to get some dinner and the debit card I'd been carrying was declined. Went back, raised holy hell, and the manager released the hold (I had him immediately charge the appropriate amount.) Eight weeks later, I took three days leave before going back. Flew my (then) fiancee up and we spent two nights at the Ritz-Carlton, Pentagon City (just outside DC.) They took my (personal) CC, ran it for a $1 "Does the card work" check, and checked me in. So...why did the bargain hotel put a hold of 40% on there, when the $419/night hotel just verified the card? It tells me that many 'bargain' hotels either have crap policies or do not trust their customers.

Sorry, but you are indeed an SC.

[JLRodgers]

One year I went to Los Angeles.... not a problem, had my debit card + one or two credit cards (can't remember how many). I had access to about $4,000, with an additional "overdraft" of $500 if needed. Considering my trip was going to cost only $400, I figured it was enough -- but I took $500 in cash just in case (sidenote: taking change in rolls for a tollroad "just in case" + flagged ticket for a one-way = "loads of fun" at the airport security table).

What happened?
--all accounts were locked due to potential fradulant activity
--accounts finally unlocked
--pre-authorizations overdrafted my accounts
--(home) finally got back the overdraft fee over the $500 loan

And all because of the pre-authorizations....
Car rental place authorized my card for 2x the total bill for my rental period. Then ran the pre-auth twice. Credit card was maxed and they charged me an overdraft fee (yet there wasn't anything removed, just a "hold").
Paid for the hotel, had to use my debit as the other card didn't work for "some reason" (found out the next day). Went to the mall to shop, got out my debit card..... didn't work. Apparently the Hotel accidently charged me 3x the total bill (got it cleared up that day though) -- and the bank locked my account for suspecious activity....
Got that cleared up -- all accounts unlocked! Yet all the pre-auths were still on (except for the like 125% hotel thing, whatever it was). Since my 0 balance (no charge other than pre-auth) on credit card was overdrafted, I had to make a payment over the phone.... so I did.... didn't go through until a few days later. Once I was, oh, on my way home all my accounts were unlocked and ready to go, but my checking account had only $100 in it! Got home -- and I owed $500 in a loan for overdraft protection!

A week later of calling and getting all the pre-authorizations cleared from my accounts, I finally had my money back. Fortunetely the bank and credit card company were "nice" enough to give me back the overdraft fees and such that happened from pre-authorizations.

[Broomjockey]

Wow, never would have thought I'd need to close a thread on pre-authorization, of all things.