Can You Use A Visa Prepaid Card To Book A Hotel Room. Do you know how much of an essential part planning your trip is when arranging for accommodation? More crucial than anything is to prep on how you’re going to secure your hotel room through payment.
Or maybe you’re in possession of a Visa prepaid card and the question arises for you; “Can this be utilized for reservation of a hotel room”? A conundrum I have been in too. However, it is time for rather clarity on this aspect. So, can a Visa prepaid card help you book a hotel room? Let’s find out more.
What Is a Visa Prepaid Card?
It is important to understand that a Visa prepaid card is not the same as a credit or debit card as it does not extend access to your bank account or credit, it is however ,considered as a payment card that pays through a specific number of funds internally loaded into it.
It functions similarly as a digital wallet, instead a specific amount is allocated to it, and allows you to facilitate transactions anywhere as long as a visa is accepted. In short it makes online deposits possible without the aide of a bank.
The process to acquire it is quite simple:
- You buy the card or get it as a present.
- You put money on the card through cash payments, wire transferring or other methods.
- You can use the card to shop online or at brick and mortar locations or place orders on over the phone just like a routine Visa card.
After the balance has been used, you can either add more funds to the card if allowed, or throw it away. Single use prepaid cards are highly recommended for budgeting, gifts or for people who don’t have a bank account.
Why Do People Choose Visa Prepaid Cards?
The familiarity with the use of Visa prepaid card continues to grow and there are many aspects I believe make them a good choice in various situations, here are a few:
1- Budget Control
Spending With a prepaid card, whatever spending limit you set is what you can use. This provides tremendous assistance in budgeting. As an illustration, you are taking a trip and want to limit your spending; preloading your card with money will assist you to avoid overspending.
2- No Overdraft Fees
There is no connection between a prepaid card and a bank account, and this means that you cannot overdraw on your account. You will never be overdrawn because you will never have to pay a costly penalty for being overdrawn.
3- Accessibility
Even those who have no bank account and bad credit can acquire Visa prepaid cards as these are easy to get. This allows people who do not meet the requirements for traditional credit cards to have something. You can find them at major retailers, banks, or online.
4- Fraud Protection
Most of the Visa prepaid cards offer protection against fraud and all other risk because their policy is the same as any other Visa card providing zero liability. This is a great comfort when traveling and when making purchases online.
Key Differences Between Prepaid Cards and Other Payment Methods
Even though there are a number of drawbacks for using prepaid cards which makes it lesser when compared to debit and credit cards, it is important to note that visa prepaid cards inclusive of many benefits. The limitations include:
Not Linked to a Bank Account: While prepaid cards are distinct from debit cards as they do not require a checking or savings deposit to be drawn from, it shares a similarity in that both have to be reloaded after usage. Furthermore, debit cards do not allow for any transactions after the card balance runs out.
No Credit Building: There are no pre loan borrowings with a prepaid card, and quite simply there are also no payments being made, meaning that there is no way to improve the users credit rating.
Authorization Holds: A lot of businesses authorize a specific amount which exceeds the total transaction, during check throughs like when you are booking a hotel and use a prepaid card for the payment, this can lead to temporary payments being withheld as a result of the aforementioned authorization.
Short answer – It does depend on several factors. A number of hotels and resorts facilitate their users with the option of booking a room with a prepaid card but the list is very selective and exclusive: Here’s the catch, Here’s the catch:
Authorization Holds
The total value of the room is charged against your card and an additional fee is charged against room services such as the minibar for example. If a decent limit is not available on the Visa prepaid card to meet these holds then the booking can be cancelled.
Hotel Policies
It is important to note that certain hotels only accept credit cards or a debit card for a reservation. As for prepaid cards, a hotel would only accept them if said hotel is confident that the person is reliable but normally they do not view prepaid cards as reliable since there is no credit line.
Booking Platforms
Though, if you are “carrying” a prepaid card and are making the reservation through a “third party” website, for example, through Expedia or Booking.com then you might be able to have more negotiated terms as opposed to reserving the hotel directly via the official hotel website and using the prepaid card.
How to Use a Visa Prepaid Card to Book a Hotel Room
If you’re set on using your Visa prepaid card, don’t worry—it’s doable with a little preparation. Here’s a step-by-step guide:
1. Check Your Card Balance
Firstly, one should always check if their visa prepaid card is able to cover booking as well as the hotel’s estimated hold amount which is usually set for future expenses.
Why is this important?
A booking for the hotel usually requires a card and when reservations are made the hotels put an estimated hold on it. The hold amount is usually equal to the anticipated stay and some extra for room services, damage and other miscellaneous events. If one’s card has not been pre loaded with the right amount of money, then any future or current bookings can be canceled.
How to check the balance?
A good way to verify if there is enough money is visiting the hotel’s website or app where there will be enough details to assist in the charges and balance. In some cases, prepaid cards allow doing the same through customer service and even through toll free calls.
2. Call the Hotel Directly
Alternatively, speaking to the hotel representative directly will provide useful input or answers that concerns payment methods. Remember, any reservation with a prepaid card isn’t guaranteed for all hotels. Everyone has their own set of criteria.
Upfront payments are insufficient, Trust Cards, Debit, or Credit Cards guarantee greater chance of getting accommodation by some providers. For a lot of hotels it seems unreliable, since there’s no bank account behind a prepaid card that seems to make one. By calling up advance, reaching the destination with this specific Visa prepaid card could be authorized beforehand.
Chances are the hotel may ask you for some documents first, or require you to make some advance payments. Sometimes specific terms and conditions apply to card payments, so do elaborate and ask.
3. Book Through a Prepaid Card-Friendly Platform
In case the hotel is not able to provide you with clarity or if you wish to steer clear from the inconvenience of getting in touch with them via call, we would highly recommend contacting OTAs that allow prepaid card booking.
Why use OTAs like Expedia or Hotels.com?
OTAs such as Expedia, Booking.com as well as hotels.com are used internationally on account of their wide user acceptance when it comes to booking via prepaid cards. These online travel platforms cater to a large number of hotels and may have more experience with the holds and transactions that prepaid cards entail. By making reservations via this platform, you are making sure that your booking goes through with no payment problems when you go to check in.
How to book?
All you need to do is look for hotels, choose a specific room to suit your liking and pay via your Visa prepaid card while checking out. Please be sure that the website in the first place allows for booking via cards and does not prohibit its use (most sites will mention its acceptance in the conditions section or FAQ page). Once these checks are carried out, everything should go smoothly with the booking but you should always have an alternative payment option if required.
4. Prepare a Backup Payment Method
You may run into issues while checking into a hotel regarding the incidental expenses even if the hotel allows you to book it using your Visa prepaid card.
Why have a backup?
A number of hotels will require a credit or debit card to cover incidentals even if there is already a guarantee on the room. Such a measure makes sure that payment will be secured and restored if such an occurrence happens.
What to do?
Make sure you have a valid credit or debit card which has not expired and also has sufficient limit to cover incidentals to be paid against while checking in. If you have a pre-paid card ensure it has a sufficient balance to avoid the need for alternative payment methods.
Pros and Cons of Using a Visa Prepaid Card for Hotels
How do I feel about it? Well, just like any method of payment, visa prepaid cards come with good and bad aspects to them when you are attempting to book a room at a hotel. So, here is what I think:
Pros
- Controlled Spending: The card limits your spending ensuring you do not go over the amount that is on the card.
- No Credit Checks: It is not a mandatory requirement for you to be credit qualified in order to use the card.
- Fraud Protection: Most of the times users do not have to worry about losing their money as many prepaid cards are insures against fraud.
Cons
- Potential Holds: Sometimes, and for a specific time, banks will seek to temporarily hold your funds.
- Limited Acceptance: You may not able to book hotel rooms or even use range of services as most hotels don’t accept prepaid cards.
- No Credit Building: Unfortunately, not like the credit cards, prepaid cards are not useful with regard to building credit history.
My Opinion
In any instance it is possible to use a visa prepaid card to buy a room in a hotel, but as much as you would like it to be, there isn’t a single case where you just swipe your card and you walk inside your room. But every process has its own set of obsticles. So as long as you are aware of the entire process and are prepared for, everything should go smoothly. Yes, visa prepaid cards can be great for making purchases.
To avoid inconveniences, it would be wise to check the payment policies in advance, make sure to check how much money needs to be loaded on the card for booking and for placing holds, and always carry a separate card (in case the prepaid card does not work).
