How does hotel credit card processing work?
Hotel credit card processing works in 5 steps across a stay:
- Tokenize the card at booking so no raw card number is stored.
- Authorize the estimated room, tax, and incidentals at check-in.
- Increase the authorization when charges exceed the estimate.
- Capture the final folio total at checkout and release the rest.
- Post a delayed charge within network time limits for items found later.
Our guide on hotel pre-authorization covers each authorization type in detail.
Do hotels charge a credit card processing fee?
Some hotels add a surcharge of up to 3% to credit card payments, but surcharging carries 3 conditions:
- Visa and Mastercard require advance notice and a disclosure at the point of sale.
- Debit cards and prepaid cards cannot be surcharged.
- Connecticut, Massachusetts, Maine, and Puerto Rico restrict or ban credit surcharges.
Most hotels build processing costs into room rates instead, because a surcharge on a $1,200 folio is visible and invites disputes.
Which cards should a hotel accept?
A hotel should accept Visa, Mastercard, American Express, Discover, and debit cards at minimum, plus Apple Pay and Google Pay at the terminal. International properties add UnionPay and JCB. Our guide to hotel payment methods covers wallets, bank transfers, and OTA virtual cards.
How long does it take a hotel to charge a credit card?
A hotel charges the card in seconds at authorization, but the guest sees the final charge post 1 to 3 business days after checkout. Funds reach the hotel's bank account 1 to 2 business days after the batch settles.