Originally Posted by
richarddd
Assume you have to cancel five days in advance and a covered reason occurs three days in advance. Is it the case that if the hotel puts through a charge on the fifth day you would get reimbursed, but if the hotel waits and the charge goes through on day zero you would not be, even though in both cases you owe the money once the fifth day passes? Or would neither count as pre-paid?
Late cancellation fees are generally only charged, as the name implies, after you cancel. This is different from a pre-paid hotel stay that progressively gets less refundable over time. (ie, 100% refundable up to 5 days before, then 50% up to the day before, etc.)
If you have a covered event then call to cancel and that triggers the hotel to charge your card that is by definition not pre-paid.
It's possible some hotels operate differently, but I can't recall a time I've been charged on a credit card guarantee post-paid room reservation at any point prior to check-in.