What if a hotel refuses to refund deposit?

If a hotel refuses to refund customer payments, the Federal Trade Commission (FTC) may step in via an enforcement action.



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Dispute the Charge with your Bank or Credit Card Provider: If the hotel is unresponsive or unwilling to return the deposit without valid reason, you can contact your bank or credit card provider and dispute the charge. They can often help mediate the situation.

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Once you check out, the hotel will put the funds back in your account, but it always takes banks a few days—or sometimes as long as a week—to get that money back to you.

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Experts say most places will offer you a refund if you have a reasonable excuse. If you are stuck with a nonrefundable room, try changing the date of your reservation. Some hotels will let you move the date of your stay if you ask. You can also resell your room and get your money back that way.

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Either way, you can sometimes wiggle your way out of either deposit – depending on the hotel's policies and your ability to present a convincing case.
  1. Request a Courtesy Hold.
  2. Preauthorization vs. Actual Charges.
  3. Ask to Waive Authorization for Incidentals
  4. Turn Off Incidentals.
  5. Other Tips That Might Help.


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Generally speaking, a hold will be released within 24 hours of checking out. But sometimes, it can take up to a week to see the charge disappear. Why does this happen? You might be tempted to blame the hotel, but it actually comes down to the card issuer.

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If you find yourself in a situation where you need to get a refund on a non-refundable hotel reservation, one of the options you can explore is disputing the charges with your credit card company. Many credit card companies offer benefits that may provide you with recourse in such situations.

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Hotel Policies Review the hotel's policy on billing disputes – this may be outlined on your reservation confirmation or posted at the front desk. Note time limits for contesting charges after checkout – you usually must dispute within 60-90 days.

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Hotel cancellation policies offer hotel guests the opportunity to cancel their booking up until a certain amount of days before check-in. Once this date has passed, the hotel might charge the guest a set cancellation fee, a percentage of the booking, or the full amount.

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How long it takes to receive your hotel deposit refund depends on several factors, including the hotel's refund policy, your stay, and your payment method. Generally, most hotels will refund your deposit within a few days after check-out. However, some may take up to one week or longer.

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Resolving hotel chargebacks Once you understand the reason code connected with a chargeback, you may determine the root cause of the dispute and send a response that includes the necessary compelling information to increase your chances of winning the case.

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No, hotels are not allowed to charge a credit card without your signature. This is because it is against the law for any business to process a payment without the customer's authorization.

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Typical Hotel Policy Regarding Non-Payment
Typically, hotels have a policy that requires guests to pay for all charges at the time of check-out. If a guest fails to pay, the hotel may charge the credit card on file or pursue legal action.

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The hold temporarily reduces your available credit by the amount of the hold. If your credit card is already maxed out, there won't be any available credit to cover the hold, and the hotel may refuse to authorize the transaction.

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If you feel your issue was not resolved, contact the regional manager or another senior executive if the hotel or motel is part of a chain. Depending on the type of complaint, if it is not resolved, you may also contact the local health department or the state consumer protection office.

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Many hotels accept debit cards when you book or check in, but they may request a security deposit. The hotel may place a hold on your debit card, but the money isn't withdrawn from your account until checkout.

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Yes, a hotel motel can charge a customer for damages after they have already checked out. This is because the customer has an obligation to pay for any damage that occurs during their stay.

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Credit cards are by far the most widely accepted payment method in the hotel industry. They offer convenience and security for both the guests and the hotel. When you book a hotel room with a credit card, the hotel will typically charge a hold on your card to secure the reservation.

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