How the authorization amount held by hotels works. Can this be reverted back on full advance payment?

Question

I paid the hotel in advance for my entire stay. When I asked them to revert back my authorization amount they say its not in there hand and I have to call my bank to remove authorization, which is not at all logical to me. I understand authorization amount is kind of security deposite so that no guest can cheat on them. Once paid the full amount for the duration of stay there is no need of such security amount. My hotel is denying to revert back the authorization amount so I want to understand how it works, what does USA laws says about it ? what are the remidial steps an international traveler can take in this case.

Answer 1

Any time one uses a credit card/or debit card and presents it for payment at a hotel, an amount is submitted for authorization to the bank. All submissions will have an additional amount above the estimated charges. This is their assurance that if one charges any additional services to ones room, that the credit or debit card will support the charges.

When this happens, the bank flags ones account for the submitted amount, and that amount is deducted as a "pending debit". This prevents one from over drawing ones account should the amount pending leave too small a balance.

This is corrected only when the hotel submits a final amount, more or less, than the estimated original amount approved.

Then the bank credits back to ones account the difference, if the estimate is more than the final submission. This process can take a day or two, or longer, depending on when the hotel submits the final amount.

In your case, if after "several days" this has not occurred, check with your bank. The above reason may be applicable.

After the final submission, it is out of the hands of the hotel.