pre-authorisation returns from foreign hotels?? Help!

lisamarie1183

So this hotel in Amsterdam pre authorised my card for £74 two weeks ago now. They did it without my knowledge, no where when booking told me that this would be happening. It just stated that payment is on arrival at the hotel. Anyway, when I noticed £74 was missing, I called them and they said it would be returned to my account in a few days. It wasn't. I then called late rooms.com as it was their website I booked through. They called the hotel on my behalf who then said that they wouldnt be returning the money at all as I had used a debit card and not a credit card to pay!!? The man I spoke to at late rooms agreed with me that this was disgusting and encouraged me to cancel as I was still within the cancellation policy (I wasnt going there until April). So I cancelled and they told us that my money would be returned within 5 working days... it's been seven and still nothing. My bank (Natwest) has not been very helpful, they said there is nothing they can do and I have rang the hotel at least four times and emailed them. The manager sent me the rudest email Ive ever received! She insists she;'s unblocked the money but I still dont have it, it's still showing as being held by them. Im just panicking now and if the worst comes to the worst and they actually never return it to me, what can I actually do? By the way, the money was supposedly unblocked last tuesday... surely by now I should have it showing in my account? Does anyone know or have any experience of this? I find it very unjust that someone can just hold your money in definitely and I can do nothing about it!?

bengal-stripe

It is common practice for hotels to pre-authorize at least one night's payment on the card provided. (After all, the customer might fail to cancel and not show-up on the day.)

Your posting is somewhat confused, was it authorized or was it charged to your account? The authorization without a proper charge will 'fall-off' after 5-7 days from your available balance, but can be called on for up to six months. If it hasn't fallen-off, that would be your bank's responsibility to correct it.

If the money has been charged then the hotel will refund. You might have made matters worse by your panic about a pre-authorization, subsequently the hotel might have put a proper charge through.

P.S. Just checked on laterooms. They clearly have advised you, that pre-authorisation is standard practice.

When you book, your card will usually be pre-authorised by the hotel. However, payment will only be taken if you fail to arrive at the hotel and you have not cancelled your booking, or you fail to cancel your booking within the terms of the hotel's cancellation policy.

http://laterooms.custhelp.com/app/answers/detail/a_id/17/kw/a%5Cuserguide/related/1

lisamarie1183

hi, late rooms does say that now yes as the man I spoke to at late rooms last week amended the site after my experience but thank you for pointing that out!
No, my card has not been charged, it has been pre authorised which still means I cant access £74 of my money. Had I known this would be the case at the time of booking, I would have used a different card. This is by the by now anyway. The hotel have said that they 'unblocked' my money over a week ago and yet I am still unable to access it as it's still showing as being held by them? My bank say there is nothing they can do.
I dont really know what you mean by makiing matters worse by panicking? does that entitle the hotel to charge me? I wouldnt have thought so. Like I said, I am not a guest, I have never been a guest and dont intend to be as Ive cancelled my booking. I have an email from the hotel to say that they have returned/unblocked my money but Ive still seen no sign of it 7 working days later....
So.... does anyone know whether there is anything I can do about this if it continues ....? It might be that it takes a few more days than they have stated, I hope so but I would appreciate comments from people who have had a similar experience or someone who knows how long these things actually take... or someone who knows what I can actually do about it legally if they do not return my money...? Thanks :-)

bengal-stripe

Any authorization (if the proper charge hasn't gone through) will fall-off after 4-7 working days: i.e. the 'available balance' is restored as if the authorisation had never taken place. Nevertheless the authorization still stands and the charge can go through for up to six months.

Why that hasn't happened in your case, I wouldn't know. But, most likely, it had to do with your bank and not the hotel. If the merchant does not charge the payment, there is little need to cancel the authorization.

Sometimes, in error, the same sum gets authorized twice, That rectifies itself within a week, without doing anything (presuming the amount in question gets charged only once).

NFH

I never understand why people use debit cards to reserve hotels and car hire etc. With a debit card, the trader puts a block on your money; with a credit card, the trader puts a block on someone else's money, i.e. your card issuer's money. You've unnecessarily given a third party access to your bank account.

Mikeyorks

lisamarie1183 wrote: »

So.... does anyone know whether there is anything I can do about this if it continues ....? )

Get NatWest to correct it. If it was 2 weeks ago then they are now past the point where their software should have given up waiting for the debit ..... and returned the money to 'available'. Point that out to them and they can't reasonably refuse.

From previous threads I seem to remember Natwest only wait 2/3 days before they return to 'available' for UK activities. They may extend that a bit for foreign transactions ..... but you should be past the point by now.

lisamarie1183

hi mike, thanks for that suggestion. I put this to natwest and they basically said they cant do that. They said if it was an actual payment then they could recall it but as it's a pre authorisation which basically shows as 'pending' there is nothing they can do. The lady I spoke to said that the company are holding that money and it depends how long a hold they have put on it. She said I need to speak to them as they need to either process it or drop it. Great... I've alreday spoken to the hotel about 4 times.. that's the whole problem... they have said they have returned it but I dont think they have. What do you do?? Aaaagh!

Saints2011

Did you use a chip & pin reader in the Hotel on arrival? If you did it would stated pre authorisation of x amount and the receipt would show the same.

As already mentioned it will drop of if it hasn’t been charged.

(From my own past experiences from staying in Hotels with work.)

Mikeyorks

lisamarie1183 wrote: »

I put this to natwest and they basically said they cant do that.

If your timelines are correct - then their software should have already done it. There is a point at which money has to be returned to 'available' if it's not claimed. That is normally 5-7 working days for most UK Banks. Natwest - I believe from earlier threads - normally do it sooner.

You just have to keep pressing them that they are past the point at which the 'hold' should still be effective. Next time you may get someone who knows what they're talking about. As evidenced by :

it depends how long a hold they have put on it.

..... which is simply stupid. It is your Bank that determines how long the authorisation lasts.

I've had erroneous pre-authorisations neutralised by UK hotels in the past ..... but wouldn't fancy my chances with a foreign one. Hence go direct to the bank as the time to make the claim has expired under the Visa guidance issued to Merchants.