Warning for credit card customers

A little known practice by card companies has been exposed, which can eat into your credit limit.

When your card is swiped on checking into a hotel, what's actually happening is that a sum is reserved from your account to cover the full cost of the stay, including an estimate to cover all extras.

That "earmarked" sum is unavailable for your use until it is cancelled at the end of the stay, when the hotel processes your final bill.

The problem came to light when Peter Ellis contacted BBC Radio 4's Moneybox when he got back from a trip abroad.

He had checked-in to one hotel - where his credit card was swiped.

But then - without running up any charges - he decided to stay somewhere else.

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