It is very similar to a Security Deposit – meaning it is paid in order to secure the room of the buyer. Though it is only then refundable if the buyer cancels the booking before the fees deadline.
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What looks like an extra trip charge is likely an authorization hold. Authorization holds for the amount of the upfront fare shown in your app may be issued when you request a ride. These temporary holds allow us to protect against fraud from unauthorized card usage and are never charged to your account.
The first step in avoiding a cancellation fee is to communicate effectively with the hotel. If you know you need to cancel your reservation, let the hotel know as soon as possible. They may be willing to waive the fee if you give them enough notice.
Most hotels no longer take a deposit for a check-in. They now process a pre-authorization of a fixed amount to your nominated credit card, usually at check-in. This will not be billed to your account and in most instances is reversed when you check-out from the hotel.
Each hotel will have its own specific hold amount, generally $50-$200, on top of your room rate (including taxes and fees). While the hotel won't officially charge you until after you check out, the issuer will put aside the hold amount in the interim to ensure you are able to cover a potential charge.