Your bill explained: When to expect hotel charges on your card

You’ve locked in your travel plans and set your budget—but when will the hotel charge your card—now, at check-in, or after your stay?

Understanding hotel payment policies prevents surprise charges from derailing your travel budget and causing confusion. This guide covers when hotels bill your card, the difference between card holds and actual charges, and how refunds work for cancellations. We'll also answer common questions so you can better control your travel expenses.

When do you pay for a hotel room? 

Depending on their policies, hotels can charge your business card at different times.

Prepaid rates at the time of booking

Many hotels offer prepaid rates that require full payment upfront. These rates are often non-refundable but may come with discounts. Travel booking platforms and hotel websites usually specify if a rate is prepaid.

Charges before check-in

Some hotels charge your card before your stay, even if the booking isn't prepaid. This happens if the hotel requires an advance deposit or a third-party booking site processes the payment before arrival.

Charges at check-in

For standard bookings, hotels typically charge your card when you check in. This charge may include the room rate for the entire stay and a temporary hold or damage deposit for incidentals.

Charges at checkout

Some hotels only charge your card at checkout to account for any accrued charges throughout your stay. For example, if you’ve added extra amenities such as dining or room service, they’ll be included in the final bill.

Charges with Engine Direct Bill

If you sign up for Engine Direct Bill, your payment information won’t be provided as a payment option—we’ll handle paying the hotel directly, and you won’t have to worry about a later charge. You'll be billed for prior stays, whatever those amounts are. This includes portions of stays that may still be in progress.

For most stays, you have the option of paying Engine immediately, and not worrying about the hotel's payment policy. For some stays, you can choose to pay on arrival at the hotel, using your own card.

Card charge vs. hold: What’s the difference?

Hotels may place a hold on your credit card in addition to or instead of a charge. It’s important to understand how this affects your available credit and budgeting. Here’s the difference:

• Charge: An actual payment deducted from your account for the cost of your stay or services used.
• Hold: A temporary reservation of funds on your credit card to cover potential costs, like room service or damages. This is also known as a hotel incidental hold.

Why do hotels place holds on credit cards?

Hotels use holds to ensure guests can pay for extra charges like room service, minibar items, or damages. The hold amount usually ranges from $50–200 per night.

Even if you don’t use extras, the hold stays on your card until you settle the final bill. Most hotels release holds within 3–7 business days after checkout, but some may take longer, depending on hotel policies and your bank’s hold process. If a hold stays on your card for too long, you may need to contact your bank or the hotel to remove it.

For business travelers with multiple expenses, Engine's incidental coverage offering can help keep credit available by reducing the impact of large holds, making budgeting easier during trips.

Can you get a refund if you cancel a hotel reservation?

Refunds depend on the hotel's cancellation policy and your booking method. Here are some scenarios to keep in mind:

• Refundable bookings: If your booking is refundable, you’ll get your money back when you cancel. Most hotels allow free cancellation up to 24–48 hours before check-in. Some may require more notice, so always read the cancellation policy before booking.
• Nonrefundable bookings: If you booked a prepaid, nonrefundable rate, you usually won’t get a refund if you cancel. However, some hotels may offer a credit for future stays or allow changes to your reservation.
• Third-party bookings: If you booked through a travel website or an online travel agency, they may have their own refund policy. Some platforms handle refunds directly, while others require you to go through the hotel.
• Last-minute cancellations: If you cancel too close to check-in or don’t show up, you may be charged for one night or even the entire stay, depending on the hotel’s policy.
• Overbooking: Sometimes, hotels overbook rooms to accommodate last-minute cancellations. If this happens and the hotel can’t accommodate you, it may offer a refund, a room at a partner hotel, or additional compensation.

If you need to cancel, do it as early as possible to improve your chance of getting a refund or rebooking without extra fees.

Manage your hotel booking with Engine

Understanding when hotels charge your card allows you to plan expenses, avoid unnecessary fees, and manage cash flow effectively during business trips. Familiarizing yourself with these policies also lets you book accommodations more confidently.

Use Engine for all your business travel needs. Engine is 100% free to use—no contracts, no minimum spend limits, and no agent-assist fees. With Engine, you can book hotels, flights, and car rentals in one place, giving you full control over your business travel budget.

Join Engine today for effortless booking and expense management. Whether for yourself or your team, Engine makes it easy.

FAQs

How much do hotels typically hold on a credit card?

The hold amount on a credit card usually ranges between $50–200 per night, depending on the hotel’s policies. Higher-end hotels or those with additional amenities may place a higher hold to account for potential extras like room service or mini-bar usage. 

Always check the hotel’s terms when booking, as the hold amount can vary significantly based on the type of room or accommodation selected.

How long does it take for a hotel hold to be released?

Hotel holds generally take 3–7 business days to be released after checkout, but the timeline can vary depending on the bank or credit card issuer. Sometimes, the hold may take up to 10 days to disappear.

Do I need a credit card to book a hotel?

While most hotels require a credit card to guarantee a reservation, some may accept debit cards or offer alternative options like cash deposits. However, if you book a hotel room with a debit card, the hotel might place a larger hold or have stricter policies around cancellations and incidentals.

What if my credit card lacks sufficient funds for a hotel hold?

If your credit card doesn’t have enough available credit for the hotel’s hold, the hotel may deny your check-in or request an alternative form of payment, such as a cash deposit or another credit card. 

If you anticipate this issue, contact the hotel ahead of time to discuss alternative payment options. You could also check your company's travel policies to see if they allow for a credit limit increase if you travel frequently—this could provide additional flexibility.