During check-in at a hotel, I give them my (debit) card, do paperwork (fill in forms, sign documents and so on...). They hold some funds ($100 for example). Finally, during check-out, something goes wrong and they tell me, they are unable to transfer held money to their account. I leave the hotel.
Shortly after I arrive at home, I receive notifications from my bank, that the hotel wrote off 2x amount of money ($200) (hopefully by mistake). But I had just $100 on my account, so now I have $-100.
Since I have overdraft, my bank starts to charge interest.
- What makes hotel's card transfers legitimate? How exactly do I give them permissions during check-in to use my card? What they can do with it? Can they do what they want to do, and then just say - "it was a mistake"?
- Is it possible to restrict them in amount and/or number of transactions they are allowed to do with my card?
- Who should pay interest to my bank? Overdraft has occurred due to their fault. Is it possible to make them pay interest?
What conclusions do I need to make? What exactly do I have to alter to avoid all these troubles in future?