A pre-authorization is a temporary hold placed on a guest's card for an estimated amount, typically at check-in, to guarantee payment for the stay and incidentals without actually charging the card yet.
The hold reserves funds on the guest's account for a period set by the card issuer. At check-out the hotel captures the final amount and the rest of the hold is released. If nothing is captured, the hold expires on its own after some days.
Guests often confuse holds with charges, so clear communication at check-in prevents disputes. Operationally, holds that are too small force awkward re-authorizations, while oversized holds on debit cards can block a guest's funds and generate complaints and bad reviews.
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