Hotel payments can be a significant challenge for travelers and business professionals alike. According to the Global Business Travel Association, the majority of business travelers have faced issues related to hotel payments. Unauthorized charges are a common concern. The finance industry also reveals that 60% of credit card disputes involve unauthorized credit card charges, making it a prevalent issue.
Understanding credit card authorization becomes crucial as travelers become increasingly wary of these practices. Whether it’s additional fees, security deposits, or unexpected charges after check-out, many travelers have been caught off guard by unauthorized charges. This leads to financial stress and erodes trust between travelers and hotel establishments. In this blog, we will explore what credit card authorization entails, why it is essential for both parties and the rights of travelers regarding unauthorized charges.
Let us understand if hotels can charge your credit card without authorization.
What is Credit Card Authorization or CC auth?
Credit card authorization (CC auth) is when the hotel verifies a guest’s credit card information before completing a transaction. It involves obtaining approval from the credit card issuer to confirm that the card is valid and has sufficient funds or credit to cover the expected charges. This authorization ensures that the hotel can secure payment for the services that may arise during the guest’s stay. For example, room charges, amenities, and any incidental expenses.
During the authorization process, the hotel may place a hold on a certain amount of funds on the guest’s credit card. This is not a charge but a temporary hold to guarantee the funds are available. The amount held can vary depending on the hotel’s policy, stay length, and booking type. Once the guest checks out, the hotel will finalize the transaction by charging the amount incurred during the stay, and the hold will be released.
Can Hotels Charge Your Credit Card Without Authorization?
Hotels cannot legally charge credit card without authorization. However, there are circumstances where this might occur and lead to disputes. When you book a room or check in, you often provide your credit card details as part of the process. This authorizes the hotel to charge for the agreed-upon services, such as the room rate, taxes, and incidentals.
However, unauthorized credit card charges can occur if the hotel adds fees you didn’t agree to. These could include extra services, damages, or post-check-out charges.These charges become problematic when they aren’t communicated, or the hotel fails to resolve disputes before billing your card. Under the Fair Credit Billing Act (FCBA), you can dispute unauthorized charges with your credit card issuer. You still have these protections even if you are a credit card-authorized user without SSN. The law still safeguards your rights, ensuring you can contest any unauthorized charges.
Hassle-free CC Auth with itilite
Managing credit card authorization forms can be a hassle and inefficient, frequently causing check-in denials and authorization issues. itilite corporate cards provide a smooth alternative to improve your business travel experience significantly.
With itilite one time virtual card, you can bid goodbye to the tedious credit card authorization process. itilite ensures that virtual card details are sent to hotels and double-checked before check-in, ensuring a seamless and hassle-free arrival.
Protect Yourself From Unauthorized Credit Card Charges
To conclude, hotels charge your credit card for legitimate expenses incurred while staying. But, they do not have the authority to make unauthorized charges. Understanding the difference between authorized and unauthorized transactions is crucial for protecting your finances.
One of the best ways to protect yourself from unauthorized credit card charges is to get assistance from itilite. itilite is a modern SaaS-based business travel management company that helps companies and employees travel seamlessly. If you’re struggling with credit card authorization and the charges involved, we will take complete care of the whole process.
From the time you announce your business trip until you return, we will handle the whole credit card authorization process with hotels. All you have to do is sit back and relax.
Are you curious to know more? Get in touch with us now!
