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You authorized employees to use the company credit card up to specific limits, but now some cards are being declined and employees are using each other’s company cards to put charges through. But total allowable usage for the statement period has not been exceeded. And, in some cases, credit suddenly becomes available a few days after the decline. What happened?

The reason this occurs is clear, but resolving the issues is not so simple, particularly when managing large crews in multiple locations. Not to mention the frustration when an employee has just gotten off of a long work shift, is tired, and is held up at the hotel front desk because the card will not authorize.

Who at your company is taking those employee calls to either determine why the credit card is not going through or finding another form of payment so the employee can check into their room for a good night’s sleep?

Often,  the card is declined because the hotel typically places a hold in the card at check in. Hold amounts vary, but can include the room cost and tax, plus a fixed charge of $50 – $200 per day. This creates a line of credit for typical incidental items that the guest might charge to the room, such as food, in-room movies, parking, etc. In addition, many facilities consider the hold a security deposit, in case the room is damaged. Add in a team of frustrated, tired employees who simply want to check in and relax, and you’ve got trouble.

How can this happen?

Here is a great example:

1 room is booked for 3 nights @ $100.00 per night plus tax.  At check in, the hotel places a hold on the credit card for the entire stay, plus an additional incidental deposit for a total of $480.00. Your crew needs 8 rooms, so multiply this charge x the number of rooms for the entire stay for a total hold on the card of $3,840.00. On the same night that the hold is placed, the crew moves to another hotel in a different city and the same scenario occurs, but the first $3,840.00 hold has not yet dropped off the credit card.  A new hold is placed at check in for $2,655.00 and the total available credit on the card is reduced overall by $6,495.00.

The card holder has little control over the hold amount as well as how many days will pass before the hold will convert to the actual hotel stay charge or be credited back to the card.  And, in most cases, that process does not even begin until after the guest checks out and moves onto the next hotel, where the process starts all over again.

This is where technology solutions can truly help. Our clients credit cards are not subject to multiple hotel credit holds, allowing the flexibility to use their credit for other necessary company expenses.

Single source for all your group housing needs – inspected, competitively priced, easy to book.