FlyerTalk Forums - View Single Post - Issue with deposit refund from Residence Inn LAX
Old Oct 17, 2019 | 3:18 pm
  #8  
gengar
 
Join Date: Jul 2008
Location: LAS ORD
Programs: AA Pro (mostly B6) OZ♦ (flying BR/UA), BA Silver Hyatt LT, Wynn Black, Cosmo Plat, Mlife Noir
Posts: 5,992
Originally Posted by Often1
This is a debit card. It is not a "hold". I am guessing that the property really did take a "deposit". A deposit would be no different than showing up with $250 in cash and handing it to the front desk at check-in. Until the cash is returned, you are out the money.

Entirely different than a CC where the "hold" simply means that your CL is reduced by $250 until released.
It's still a hold (if we must be pedantic, the industry standard term is "authorization hold" or "preauthorization"). On a CC typically the credit line is reduced, whereas on a debit card, typically the available withdrawal balance is reduced by the amount of the hold.

The key distinction is that it is not a deposit, as the merchant has not taken the money and has no access to the funds. It is the bank that is withholding access to the balance.
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