Quote
Originally posted by: cegoblue
A similar thing happens when you use a debit card except that instead of placing a hold on available funds the hotel actually withdraws the funds. After you check out your the funds are refunded to your debit card.
Close -- the hotel places an authorization on your debit card, which pulls the funds out of your 'available balance' with your bank (your bank still has your money -- they've just assured the hotel that the amount requested is available for the hotel if they finalize the transaction).
At the end of your stay, the hotel finalizes the charges (if any) which releases the authorization, which, a day or two later, causes the auth to fall off your account and release the funds back into your available balance with your bank.