Still Using Your Debit Card to Book Hotels? Here’s Why You May Want to Switch

Hotels often place temporary authorization holds for room charges and incidentals, potentially restricting hundreds of dollars in a guest’s checking account. Using a credit card for check-in may help protect cash needed for everyday expenses. BongkarnGraphic/Shutterstock

You find a great hotel deal for $150 a night, book a three-night stay, and assume your total will be around $450 plus taxes. But when you check your bank account after arriving, you discover that hundreds of additional dollars are suddenly unavailable. You haven’t been overcharged, and nobody has stolen your money, but your hotel has placed a temporary hold on your debit card. Unfortunately, that hold could remain in place even after you’ve checked out and returned home.

Using a debit card for hotel reservations might seem like the simplest way to avoid credit card debt, but it can create unexpected financial headaches. Understanding how hotels process payments could help you protect your checking account, avoid declined transactions, and enjoy your vacation without worrying about your available balance.