When do hotels charge your credit card?

PhotoAlto/Eric Audras/ Getty Images; Illustration by Austin Courregé/Bankrate

You’re planning a vacation, and it’s time to book a hotel room. The question then arises: When do you pay for it? Is the charge going to hit your credit card as soon as you complete the booking? Some time before check-in — or after you check out? It certainly helps to know as the amount can be significant.

The simple answer is: It depends. Several factors can impact when you’re required to pay, such as where and how you’re booking, and even the nightly rates you’re choosing. Without further ado, let’s take a closer look at these factors so you can know what to expect when planning your trip.

Things to know when booking directly with a hotel

When you book directly with a hotel, the point at which you pay depends on the hotel’s policy.

The charge can hit your account:

• At the time of booking, in which case, it can be refundable or nonrefundable. Sometimes, you have the option to pay when you book to get a discounted rate.
• Before check-in, typically between 24 and 72 hours before your reservation (and often when your payment becomes nonrefundable).
• At check-in, especially if you book a long stay.
• At check-out, which is when most hotels charge their guests.

If that doesn’t sound all that clear-cut, that’s because it’s not. So, how would you know?

As an experiment, I went ahead and tried to book a room for a night on April 19 in a Hilton in Downtown Seattle. At the last stage of the booking process, the following screen awaited me:

It wasn’t immediately clear when the hotel would charge my card. If it was free to cancel until two days before my reservation, did it mean I’d still pay at booking and then receive the full amount back? Or would I be charged on or after April 17?

I scrolled down and found a link to the rules and restrictions, which included:

That sounded like a hold would be placed on my card when I checked in, and I’d only need to pay once I checked out. But then again, the rules didn’t state that explicitly.

Not entirely satisfied, I asked Google when Hilton charges credit cards and found the following page:

That led me to conclude that my card wouldn’t be charged before my stay unless I canceled it later than April 17.

Do you pay for a hotel before or after?

As you can see, hotels don’t always make it abundantly clear what they need your credit card information for and when exactly they will charge your card. If you can’t figure it out after going through the booking process and browsing the hotel’s website, it’s best to get in touch with customer support and ask directly.

What’s the difference between booking through a third-party and directly?

When you book on a third-party website, there are just as many variables when it comes to the timing of payment. In this case, your reservation falls under the website’s policies rather than those of the hotel.

In this case, you may encounter prepaid reservations more often — especially if you’re on the hunt for discount rates.

For example, I looked at hotel stays in Downtown Seattle for April 19 on Booking.com. I found that Mayflower Park Hotel offered 15 percent off my stay if I agreed to a nonrefundable payment before my stay. But if I paid the normal rate, I would be able to cancel my reservation free of charge before April 18. Plus, I wouldn’t need to pay before arrival.

What if you book through a credit card travel portal?

Booking through a travel credit card issuer’s portal allows you to earn or spend rewards on your hotel bookings. However, you’ll most likely need to pay at the time of booking — especially if you’re redeeming your rewards. Once the booking is complete, you’ll see the point or mile balance on your credit card go down shortly after. That said, if you’re using cash, some issuers may allow you to skip paying before arrival.

For example, American Express allows you to do that for certain properties, according to the issuer’s website. However, you might be giving up certain benefits if you wait to pay.

For one, the $200 hotel credit The Platinum Card® from American Express cardholders get each year on prepaid Fine Hotels + Resorts or The Hotel Collection bookings through American Express Travel is only available on prepaid stays. The same applies to the 5X rewards rate the card offers on flights and hotels on Amex Travel.com (up to $500,000 on these purchases per calendar year). You only get this rate on flights purchased directly from airlines or through American Express Travel and prepaid hotel stays booked through the portal.

As you can see, policies and their details can vary widely. Pay attention to the fine print to know what to expect.

The bottom line

The timing of when you’re required to pay for your hotel stay can range from booking confirmation to check-out. To eliminate the guesswork and plan your budget accordingly, review the policies of the hotel or portal you’re using to book. And if you still have questions, you can always reach out to customer service for clarification.