Why Your Hotel Deposit Feels Like Black Magic (And Where Your Money Really Goes)
Checking Out on Confusion: The Curious Case of the Vanishing Hotel Deposit
Picture this: You’ve just enjoyed a blissful hotel stay. You check out, bid a fond farewell to the free breakfast, and then—days later—your bank account is still missing that mysterious “incidental deposit.” You call the hotel, feeling like Sherlock Holmes hunting down a missing tenner. You’re told, “We released it! It’s your bank’s fault!” Your bank, in turn, shrugs, blames the hotel, and leaves you in financial limbo.
If you’ve ever found yourself in this bewildering cycle, you’re not alone. In fact, you’re in the company of legions of befuddled travelers and frazzled front desk workers, as evidenced by a recent viral thread on Reddit’s r/TalesFromTheFrontDesk. Let’s unpack what’s really going on with your money, why it sometimes takes an eternity to return, and what the hotel workers wish you’d understand—before you pick up the phone to complain.
The Mysterious World of Incidental Holds
First things first: What exactly is an “incidental hold”? Contrary to popular belief, hotels don’t actually “charge” you an incidental deposit—they authorize a hold on your card to cover potential extra charges (think: minibar raids, room service splurges, or that unfortunate towel-turned-facecloth incident). As u/Thisisurcaptspeaking, the original poster, points out, “we authorize one. And then we release upon checkout.” The trouble comes later, when guests expect the money to magically reappear in their bank accounts the instant they roll their luggage out the door.
But here’s the twist: The hotel releases the hold as soon as you check out, but your bank is the one playing keep-away. Why? Because banks can make a little interest while your money is “in the ether.” As one commenter, u/Its5somewhere, put it wryly, “The banks also lie... they have the hotel to use as a scapegoat and the possibility of 'earning' fees to motivate them not to [release the hold].”
So while you’re nervously refreshing your banking app, your money is off at a spa retreat in Pendingville, making your bank just a little bit richer.
Credit vs. Debit: The Great Card Debate
Before you book your next stay, here’s a pro tip from the front desk trenches: Use a credit card, not a debit card. “Put it on your credit card, not your debit card,” urged u/YouCanShoveYourMagic—a sentiment echoed by several experienced hoteliers. Why? Because when a hold is placed on a credit card, it’s the bank’s money being “held,” not yours. If there’s an error or a glitch, your actual cash isn’t trapped in limbo.
As u/Forward_Deer9230 explained, “If you’re using a credit card, then that’s the bank’s money being held. If you’re using a debit card, then that’s YOUR money being held.” This can make a world of difference, especially if you’re on a budget or, say, your rent payment is scheduled to go through just as your deposit’s floating in the digital void.
Of course, not everyone has a credit card—or wants to use one. Some commenters pointed out that in Europe, debit cards are the norm and hotel refunds usually run smoothly. But in the U.S., especially with pre-paid or app-based cards (looking at you, CashApp), you could be waiting weeks for your money to return. As u/ohmygoditdietcoke lamented, “Whenever I get a call about an authorization not being released, I immediately ask if it’s a CashApp card, and it almost always is… there’s nothing we can do!”
“But I’ve Never Had to Pay a Deposit!”—And Other Tall Tales
Every hotel worker has heard it: “I’ve traveled everywhere and never had to pay a security deposit!” According to u/BlueJeanFoneCase, unless you’ve been time-traveling since the Nixon administration, this is probably not true. Some hotels do skip incidental holds (u/SkwrlTail’s property, for example, only keeps a card on file, not an actual hold), but they’re the exception, not the rule.
And here’s another common scenario: Guests finding out about the deposit at check-in, then trying to cancel their reservation. Sorry, says OP, “with the 24-hour period, do your research.” Pro tip: Always call ahead and ask what the deposit policy is, especially if you’re booking with points or through a third-party site. As u/unholyrevenger72 discovered, even employee or loyalty stays aren’t exempt from these rules—despite what some guests might claim.
Don’t Blame the Messenger (or the Messenger’s Manager)
Perhaps the biggest takeaway from the Reddit thread is that front desk staff aren’t out to steal your money or ruin your vacation—they’re just as frustrated by the process as you are. In fact, sometimes they get stuck mediating three-way phone calls between guests and banks, with neither side willing to claim responsibility for the missing funds. (“The CC rep earned a warm place in my heart when she informed [the guest] that… he had been overdrawn $15 when the release hit,” recalled u/basilfawltywasright.)
So next time you’re tempted to unleash your inner detective, remember: The real culprit is often a system that’s more convoluted than it needs to be. And if you’re ever unsure, just ask before you book—your future self (and your bank balance) will thank you.
Conclusion: Let’s Make Deposits Less Mysterious
Hotel deposits shouldn’t feel like a financial escape room. With a little research, the right card, and a dash of patience, you can avoid the most common headaches. And if you’re ever in doubt, ask the front desk—they’re more than happy to explain (probably for the hundredth time that day).
Have your own deposit horror story or a hot tip for fellow travelers? Share it in the comments—let’s help each other make sense of the hotel hold hokey-pokey, once and for all!
Original Reddit Post: Deposits/Incidentals