Hotel insistence on signed authorised credit to 'activate account'. Is this usual?

mandragora_2

We've just been away for a (fantastic) week at an H10 hotel in Lanzarote, but it started with a stand-up row at the check in desk when the reception staff insisted that we sign a slip of paper 'authorising' our credit card to be debited for any amount of bills we ran up in our stay (we were half-board), which we could then settle by this card or any other method we chose on checking out. After a tussle (they really weren't going to let us into our pre-paid room, and we were a very long way from home!) I signed it but added a note to the effect that anything written on the form was not applicable, and that I'd signed under protest. They noted my objections in the day book. The next thing I did was to ask them to empty the mini bar and we subsequently had a very good time, and didn't run up any expenditure in the hotel.

I was sufficiently annoyed about it to speak to the hotel manager on the last day of our stay, and was basically told that it 'is not possible' for guests to pay at the bar or in the restaurant, and that because sometimes guests leave without paying for things, all guests must give their cc details on arrival. We had a full and frank exchange of views, and I pointed out that I'd paid in full six months ago, giving them the benefit of my full trust and a sizeable interest-free loan into the bargain. I can see her point to some extent, because they must get their share of runners, I imagine, however I just think it's poor customer relations that virtually the first thing you say to a new customer when they arrive is 'We don't trust you, and we need access to your bank account or a sum in cash to have as a sum to hold back in reserve in case we decide you owe us anything'.

We travel a lot, and stay in a lot of hotels, and from time to time I get asked if I'd 'like' to give them my card details on arrival to 'make it easier at check out' and I always decline this delightful opportunity, as I like to a) think about what I'm spending at the point I'm about to spend it (and I think this is all about upselling, by the way, not absconding non-payers) and b) have the chance to look at exactly how much I'm being charged at the point I'm being charged it, rather than having to have a dispute a week later, when details may be very much vaguer.

However - am I just being an old fart about this? Is this 'activate your account' ploy actually a common practice and one which I've managed to escape so far?

SW17

It is widespread practice, particularly in 4 and 5 star chain hotels. Not so usual to be asked to sign something, but extremely common to be asked to provide a credit card "for extras". They will often pre-authorise it for an amount to cover possible extras (can be in the hundreds of dollars/euro/pounds, depending on hotel), similar to what car hire companies do. They don't actually charge the card in most cases (that is dodgy if they do).

I don't know if you travel in the US much, but you'd struggle to check into many hotels there without providing a CC.

It's pretty unusual to be refused access to your room (outside the USA) if you refuse to provide a CC on a prepaid booking (they normally just block everything you can use from the room, like minibar and phone), but the fact that the hotel bar and restaurant don't allow direct payment is probably the reason here. Haven't stayed at the property in question, but H10 is a pretty reputable chain.

Out of interest, how did you book/pay for the main half board stay?

richardw

It is.

Are you thinking of hiring a car some time soon?

zagfles

I've never been asked to sign a blank authorisation - that's like giving them a blank cheque. Sometimes they'll ask for a swipe of the card, which I tend to refuse and say I'll pay cash for stuff (and they're usually OK with that).

At some places they ask for authorisation for a specific amount (say EUR100) as a deposit on a signed CC authorisation which they give you back when you leave, but that's mainly campsite/caravans rather than hotels.

zagfles

SW17 wrote: »

It is widespread practice, particularly in 4 and 5 star chain hotels. Not so usual to be asked to sign something, but extremely common to be asked to provide a credit card "for extras". They will often pre-authorise it for an amount to cover possible extras (can be in the hundreds of dollars/euro/pounds, depending on hotel), similar to what car hire companies do. They don't actually charge the card in most cases (that is dodgy if they do).

I don't know if you travel in the US much, but you'd struggle to check into many hotels there without providing a CC.

It's pretty unusual to be refused access to your room (outside the USA) if you refuse to provide a CC on a prepaid booking (they normally just block everything you can use from the room, like minibar and phone), but the fact that the hotel bar and restaurant don't allow direct payment is probably the reason here. Haven't stayed at the property in question, but H10 is a pretty reputable chain.

Out of interest, how did you book/pay for the main half board stay?

I've stayed in loads of motels in the US paying cash and not giving CC details.

Andypandyboy

It is normal practice, you peruse the bill at check out.

mrcow

Practically every decent hotel I've ever stayed at in the US has taken a nominal amount of money (say $50 per room) off my credit card as preauthorisation. Really it's not worth ruining your holiday over (or actually arguing with people about). It's not the desk clerk (or the duty manager) who makes up the rules.

zagfles

mrcow wrote: »

Practically every decent hotel I've ever stayed at in the US has taken a nominal amount of money (say $50 per room) off my credit card as preauthorisation. Really it's not worth ruining your holiday over (or actually arguing with people about). It's not the desk clerk (or the duty manager) who makes up the rules.

Pre-authorisation is normal, that's not "taking it off" the CC, it's reserving a bit of the limit so they can be sure it's available. It's nothing like being asked to sign a blank authorisation.

meer53

zagfles wrote: »

Pre-authorisation is normal, that's not "taking it off" the CC, it's reserving a bit of the limit so they can be sure it's available. It's nothing like being asked to sign a blank authorisation.

Once a hotel or car rental company has your CC details, they can debit whatever amount they like. It IS a blank authorisation.

budgetflyer

I really dont see the big deal. Its common practice in 4 and 5* hotels to just charge to your room and settle at the end.Pre authorisation protects the hotel from runners.

zagfles

meer53 wrote: »

Once a hotel or car rental company has your CC details, they can debit whatever amount they like. It IS a blank authorisation.

They can charge the card but unless they can prove the customer authorised the amount of the charge, the customer can insist on a chargeback.

Which is why, for instance, Barclays merchant services tell hotels to get a signature on the final bill. That wouldn't be necessary if they had pre-authorisation to charge what they wanted.

http://www.barclaycard.co.uk/business/existing-customers/chargebacks#tabbox3

Check outs:
Always request a signature – without one on the final bill, we may unable to defend any chargebacks received at a later date.