Tips to Donate to Charity Safely Online

Donating to charity is a rewarding way to support causes you believe in. And these days, you can do it with just a few clicks on your keyboard or taps on your phone. But you need to be vigilant when making an online donation. With the rise of digital giving, scammers have also adapted, making it difficult to discern legitimate organizations from fakes. Here are some tips to help you avoid online donation scams and ensure your money really does make a difference.

Key Points

•   Before making an online donation, vet the organization using a charity watchdog site like Charity Navigator or Candid.

•   Verify website legitimacy and security by checking for “https” in the URL and reading the privacy policies.

•   Using a credit card provides added protection when making online donations.

•   Be wary of pressure tactics and unsolicited requests for charitable donations.

•   Avoid clicking on links or attachments or sharing them with your friends unless you know that the charity is real.

Research the Charity

Unfortunately, not all “charitable” organizations are legitimate. Many scammers market fake charities with real-sounding names and sophisticated websites and social media channels. Before you part with your money, it’s a good idea to vet the charity on a government or watchdog site. Here are four you can trust:

•   Better Business Bureau Wise Giving Alliance

•   Charity Navigator

•   CharityWatch

•   Candid

You can also use the IRS’s Tax Exempt Organization Search to verify the nonprofit status of any organization you are donating to.

As an additional safeguard, you may want to do an online search of the charity name with words such as “complaints” or “scams” to see if others have had issues when donating to the organization.

💡 Quick Tip: Online bank accounts with SoFi can help your money earn more — up to 3.80% APY, with no minimum balance required.

Verify the Website’s Legitimacy

Online scammers sometimes create fake sites to imitate legitimate charities. Here are some quick ways to verify that you’re donating on an authentic website:

Check for HTTPS and Privacy Policies

A real nonprofit organization will have a website with “https” (not “http”) at the start of the site’s URL, This signifies that the website is secure and that payment data will be encrypted and securely transmitted. In addition, most charity web addresses end with .org and not .com.

Another way to verify a website is legitimate is to look for the site’s privacy policies. Real nonprofit organizations are typically transparent about how they collect, use, and protect your information. If a website lacks these explanations or has a poorly written privacy policy, it could be a red flag.

Look for Secure Payment Methods

Before making an online donation, you’ll want to make sure the site offers reputable and secure payment processing options. Trusted charities typically offer credit card payment gateways like PayPal, Stripe, or other well-known processors. Be wary of any charity sites that only accept unconventional payment methods, such as gift cards, wire transfers, or crypto assets. Requests for these hard-to-trace forms of payment are a hallmark of fraudsters.

Be Cautious of Unsolicited Requests

While real charities may reach out asking for donations, they’re usually ones you’ve given to in the past. Legitimate nonprofits typically do not use emails or text to pursue first-time donors. Here are two common solicitation schemes to be aware of:

•   Email donation scams: Scammers often disguise their emails to look like official charity communications. Look out for generic greetings, misspellings, or requests for personal details. If you receive an unsolicited email, avoid clicking on any links or attachments. Instead, go directly to the charity’s official website.

•   Social media fraud: Fraudsters may set up fake profiles or ads claiming to raise funds for people in need. The fundraising page may even have photos of real people. However, the money you give to these scammers never reaches actual people in need. Be sure you only donate through verified charity sites, and be skeptical of individuals claiming to fundraise on behalf of established organizations.

Use Secure Payment Methods

Choosing the right payment method can add an extra layer of protection when donating online. Generally, credit cards are safer than debit cards, which pay directly from your checking account. If a fraudulent charge occurs, it’s often easier to dispute the charge and recoup your funds when you’ve paid with a credit card.

Another way to donate online safely is to use a charity-focused donation platform like JustGiving, GoFundMe Charity, or Donorbox. These platforms verify charities and typically have secure payment methods in place, making it safer for donors. They also provide an accessible, organized way to track your donations, which can be helpful for future reference.

Recommended: IRS Tax Deduction Rules

Keep Records of Your Donations

Whenever you make an online donation, it’s important to maintain good records and receipts of the transaction. This is for two main reasons:

•   Tax purposes: If you’re eligible for charitable tax deductions, you’ll need proper documentation of each donation, including receipts and confirmation emails. This makes tax filing easier and ensures compliance with tax regulations.

•   Ensuring accuracy: With good records, you can check to see that the correct amount was processed by the organization. If you notice an additional donation made from your card that you didn’t authorize, you’ll have the records to show how much you truly agreed to donate.

Be Wary of Pressure Tactics

Scammers often pop up during times of crisis like natural disasters or tragic events with requests of urgent support. Be wary of any charity that pressures you to make a donation right away. Genuine nonprofit groups typically give donors time to learn more about their organization, answer any questions they might have, and work on building relationships with donors — even when time is of the essence.

Recommended: Helpful Tips on Recovering From Being Scammed

Set Up Recurring Donations Carefully

If you find an organization you love and want to donate to regularly, you might want to set up recurring donations. If it’s a charity you’ve never given to in the past, however, it’s a good idea to start with a single donation. If everything goes smoothly, you can go ahead and set up a recurring donation. Just be sure the charity provides clear instructions on managing and canceling recurring payments and that you have the ability to easily cancel or alter your contributions at any point. It’s also a good idea to regularly review your bank statements to ensure that only authorized amounts are being charged.

Stay Informed About Current Scams

Unfortunately, online donation scams are always evolving. Charity scammers will often use recent emergencies and conflicts as opportunities to solicit money from concerned people. To stay updated on the latest charity scams, follow reports from trusted sources like the Federal Trade Commission (FTC), Internal Revenue Service (IRS), Federal Bureau of Investigation (FBI), and your state attorney general’s website. Being aware of current tactics can help you avoid falling victim to fraud, especially during times of crisis.

The Takeaway

Giving money to a charitable cause can make a real difference. However, there are scammers out there who may attempt to take advantage of your good nature by tricking you into donating to a fake charity. Fortunately, there are ways to beat them at their own game. Simple steps like vetting charities before you donate, verifying website security, and using secure payment methods, can help ensure your online donation goes directly to the causes you believe in and your money makes a real impact.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

How can I verify an online charity is legitimate?

You can verify a charity is legitimate by looking it up on charity watchdog websites like Charity Navigator, CharityWatch, and the Better Business Bureau Wise Giving Alliance. These sites offer reports and ratings on charities based on their transparency, finances, and accountability.

It’s also a good idea to check out the organization’s website and review the web address. Look out for slight misspelling in the nonprofit’s name and note the URL (a secure URL should begin with “https” rather than “http”).

Are there secure payment methods for online donations?

Yes, legitimate charities offer a way to make secure online donations. Look for a site with “https,” not “http,” in the URL (this means your financial information will be encrypted). It’s also a good idea to use a credit card, versus a debit card, for payment, since credit cards offer additional layers of fraud protection. You’ll want to avoid making an online donation via wire transfer, gift cards, or crypto assets — these hard-to-trace forms of payment are often preferred by scammers.

Can I get a tax receipt for online charitable donations?

Yes, legitimate charities typically provide a tax receipt for online donations. After donating, you should receive an emailed receipt containing the donation amount, date, and the charity’s tax ID. Be sure to save all online donation receipts. You’ll need them in order to claim any deductions at tax time.


Photo credit: iStock/jacoblund

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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How to Mail a Check Safely

Mailing a check safely involves filling it out accurately, selecting the right envelope, and sending it via a secure method. These steps, among others, can help you avoid having a check get lost or stolen when mailed.

While electronic forms of payment are increasingly popular, there is still a fairly robust market for sending payments via check. According to a recent GOBankingRates survey, more than half of all Americans wrote a check last year. However, the United States Postal Service (USPS) has seen an uptick in mail theft in recent years, meaning for those who do write checks, taking extra care when writing and sending checks can be a wise move. Learn the how-tos here.

Key Points

•   To mail a check safely, fill out checks accurately, use secure envelopes, and opt for secure mailing methods to prevent loss or theft.

•   Security pens with non-washable ink deter fraud by making checks difficult to alter.

•   Concealing checks using security-lined envelopes or additional paper can protect them from being identified and stolen.

•   Certified mail or tracking services can enhance security by providing proof of delivery and requiring a signature upon receipt.

•   Consider electronic payments as an alternative to mailing checks to eliminate associated risks.

Preparing the Check

There are a few things you can do to help make sure any checks you write from your checking account are safe, even before you put it in the mail:

Filling Out the Check Correctly

The first thing to do to help ensure your checks are safe in the mail is to fill the check out correctly. This includes making sure all the information is accurate and that you don’t leave any areas of the check blank.

If you’re writing a check and there’s blank space between the amount and the part of the check that is typically printed with the word “dollars” to the right, you can fill that in with a horizontal line. That can help prevent someone from altering the amount.

Adding Security Features

If the check is for a high value or you have reason to be nervous about its safety, you can also use something called a security pen. Unlike a traditional pen whose ink can be washed away, security pens inject non-washable ink into the check, making it harder or even impossible for it to be used fraudulently.

You can also write “For Deposit Only” on the back of the check (underneath where it will be endorsed), which can make it more challenging for someone other than the intended recipient to cash or deposit the check.

Choosing the Right Envelope

When you opened your bank account, you may have been given the opportunity to order check accessories, such as opaque or security-lined envelopes. These are specially designed so that a person holding the sealed envelope can’t easily tell that there’s a check inside.

If you didn’t order these envelopes when you first opened your account, it can be a wise move to purchase these security envelopes, available at many big box and office supply stores as well as online retailers.

If you don’t have this kind of envelope handy, it can be wise to fold a piece of blank paper around the check, making it less visible through a standard envelope.

Recommended: Does Switching Banks Affect Your Credit Score?

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Addressing the Envelope Properly

One key detail in mailing a check safely doesn’t involve the check itself at all. Instead, it focuses on making sure you address the envelope properly. You’ll want to write the recipient’s address in the correct format, with all possible details (such as apartment numbers), and with clear handwriting. Making sure you do so can help ensure that your check gets to its destination vs. getting lost in the mail.

Recommended: How to Use an APY Calculator

Secure Sealing Methods

In addition to addressing the envelope properly, it’s important to seal your envelope securely. Simply licking the envelope or sealing it with water may not be sufficient — instead, consider securing your envelope with tape or security seals. Just be sure you don’t tape over the stamp; that can invalidate the postage.

Mailing Options

You also have several options for mailing a check, and the choice can affect how secure your check will be when mailed.

Regular Mail vs. Certified Mail

One choice you have is whether to send your check via regular mail or certified mail. Certified mail provides proof of delivery (and optional signature confirmation), so it may give you additional security and peace of mind regarding someone stealing the check and trying to commit bank fraud. However, it does come with an additional cost.

Using Tracking Services

You can also use a tracking service when mailing a check. Both the USPS as well as private carriers such as UPS or FedEx allow you to purchase tracking services and often have the option of requiring a signature upon delivery, further enhancing security. This intel will help you know where your check is and when it’s been received by the payee. If you have multiple bank accounts, using a tracking service may help you stay organized with which checks from which accounts have been received.

Additional Safety Precautions

Some additional safety precautions that you might take would be avoiding any outdoor mailboxes (whether at your home or a blue USPS box in the community), hand-delivering your check to the post office, and/or informing the recipient to be on the lookout for your check, perhaps with information on when and from where it was mailed.

If you do find that your account has had fraudulent activity, contact your bank’s customer service department as soon as possible. They may be able to figure out what happened, reverse the charges or, in a worst-case scenario, close your bank account and reopen it with a new account number.

Alternatives to Mailing Checks

While there may be some scenarios where you absolutely must mail a physical check, it is becoming increasingly accessible to transfer money between banks electronically.

Taking advantage of ACH transfers or other electronic payments possible with online banking, as well as peer-to-peer payment apps, can help to eliminate the risks of sending a check payment through the mail.

Recommended: 7 Tips to Managing Your Money Better

The Takeaway

If you need to mail a check, taking a few simple precautions can help it arrive safely. These include filling out the check and the envelope correctly, using a security pen and/or secure envelopes, and taking advantage of services such as certified mail, tracking, and proof of delivery. While these precautions may come with added cost and effort, they may pale in comparison to the cost of dealing with your check being intercepted and used fraudulently.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

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FAQ

Should I use a special pen when writing checks for mailing?

You can use a special kind of pen called a “security pen” to enhance security when writing checks. The ink from a traditional pen can be washed away, leaving fraudsters with a blank check that they can make out to a different name and for whatever amount they please. Security pens infuse checks with non-washable ink, which makes it difficult or impossible for fraudsters to get access to your check.

Is it safer to mail checks from a post office rather than a mailbox?

Yes, generally it is safer (and recommended) to mail checks from a post office rather than from your mailbox or an exterior blue Post Office mailbox. While taking your checks inside a post office building doesn’t guarantee something won’t go wrong, it does cut down on the risk that someone will intercept your check before it gets to the post office.

What precautions can I take when mailing a check internationally?

There are a few precautions that you can use when mailing a check internationally. One is to conceal the check within an additional layer of paper or a secure envelope, as you would in the U.S. You can also use a secure pen to write your check and consider trackable options for sending it overseas. You could also reach out to the payee to see if there is an alternate electronic way to make the payment.


Photo credit: iStock/Goodboy Picture Company

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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Guide to Hotel Credit Card Holds

Guide to Hotel Credit Card Holds

When you check into a hotel, the hotel is very likely to ask you to put a credit card on file. This is true even if you are using points for a free night or if you have already prepaid for your stay. When you give the hotel your credit card, they will usually place a small hold on your credit card. This is typically a relatively small amount, but it can range from $20 to $200 above the price of your room.

Hotels use these credit card holds because the exact amount of your final bill is not known at the moment of check in. You may charge items to your room, grab some drinks from the minibar, extend your stay, or even cause damage to the property. Once you checkout and your final bill is settled, the hotel credit card hold will usually drop off of your credit card account.

Key Points

•   Hotels place temporary holds on credit cards at check-in to cover potential incidental charges or damages.

•   These holds generally range from $20 to $200 above the cost of the room.

•   Temporary holds can reduce available credit, impacting credit utilization and possibly causing declined transactions.

•   Debit card holds can result in overdraft fees if the account balance is insufficient.

•   To manage holds, check available balance, understand hold amount, and confirm hold removal after checkout.

What Is a Hotel Credit Card Hold?

A hotel credit card hold is a type of credit card hold that happens when you stay as a guest at a property. When you check in to a hotel, they typically will ask for a credit card to put on file. The hotel will then put a hold on your card to account for any incidentals or other charges during your stay, such as room service or perhaps wifi fees (yes, some places still charge for that).

You are not responsible for paying the amount of the hold unless and until it becomes an actual posted charge. It may, however, decrease your total available credit in terms of your credit card limit, and can impact your credit utilization ratio.

How Hotel Credit Card Holds Work

Hotel stays are one of a few types of expenses where you may not know the exact final amount of the charge initially. When you go to the supermarket and buy a week’s worth of groceries, you will be immediately charged for the cost of that food — no credit card hold required. But when you check into a hotel, the management will put a hold on your card to account for any extra charges or damages that could occur in the future. Even if you’ve found a great travel deal or used points for your stay, this kind of hold is typical.

What Can You Be Charged For?

Most hotels will put a hold on your credit card to account for any extra or additional charges that might come from your stay. Here are a few things you might be charged for:

•   The cost of your room (if not prepaid)

•   Additional nights if you extend your stay

•   Room service

•   Other items charged to your room (such as minibar snacks or an on-demand movie)

•   Damages to the property

Recommended: Breaking Down the Different Types of Credit Cards

How Long Does a Hotel Hold Your Credit Card?

Generally a credit card hold is processed by the card network itself (e.g. Visa or Mastercard) and not by the merchant. So the hotel itself likely does not have any control over how long the hotel credit card hold amount stays on your account. Generally, most hotel credit card holds will drop off within one to a few days after you check out.

If you’re still seeing the hold on your account after that, reach out to your credit card issuer to see if you can get it removed.

What Are the Benefits of a Hotel Credit Card Hold?

A hotel credit card hold doesn’t offer very many benefits to the consumer — it’s more just an artifact of how credit cards work. A hotel credit card hold may provide some semblance of protection for the hotel itself in the case of needing to get payment for additional charges or damages.

But from the consumer side of things, a hotel hold on your credit card is just something to be aware of and account for, since it will generally lower your amount of available credit.

Other Methods of Reservation

You have a variety of different methods of payment that you might use to pay for your hotel stay. You might use your credit card points, cash, or a debit card, or otherwise prepay for your stay.

But it’s important to know this: No matter how you reserve and pay for your hotel room, the hotel is likely going to ask you for a credit card to put on file and put a hold on your card when you check in. It’s quite typical throughout the industry.

Recommended: What Is the Average Credit Card Limit and How Can You Increase It?

Booking a Hotel Using a Credit Card Hold

One of the most popular ways to book a hotel is with a credit card. Using a credit card to book and pay for your hotel allows you to not have to give a cash deposit or another form of payment when you check in and check out.

If you pay for your hotel room with a debit card, credit card rewards, or cash, you’ll likely also have to show a credit card when you check in. The hotel will generally put a small temporary hold on your credit card account at that time.

Best Practices for Managing Credit Card Holds

It’s unlikely that you have any control over a hotel putting a temporary hold on your credit card. That said, it’s still important to understand what that means and how you can manage it.

Most hotel holds on credit cards are relatively small amounts, even as little as $20. However, if you have a credit card with a lower overall credit ceiling or if you are close to maxing out your credit, this practice may end up limiting your total available credit. You’ll want to be aware of that to minimize the chances of your credit card being declined.

How Do Hotel Credit Card Holds Help Hotels?

Hotel credit card holds help hotels by making sure that they have access to your card in case there are additional charges or damages by guests. In many cases, there are no additional charges. You can make a credit card payment for the total amount of your bill and settle your account.

But if there are any additional charges, a credit card hold helps the hotel to know that your card has at least a certain amount available to pay.

Credit Card Hold vs Debit Card Hold

Holds can be issued on both credit cards as well as debit cards. In both cases, a hold is temporary and for a specific amount. Once the charge is finalized, the hold will usually be automatically removed.

One important difference to note: Because a debit card is tied directly to your bank account, you may be charged additional fees if the hold triggers an overdraft on your account.

In either scenario, it can be wise to understand your total available balance and how any temporary holds affect it.

Recommended: Understanding Purchase Interest Charges on Credit Cards

The Takeaway

It is common practice in the hotel industry to request a credit card at check-in and place a temporary hotel credit card hold on the card. This temporary hold is generally around $20 to $200 higher than the outstanding balance on your hotel room. This hold helps to protect the hotel if you have any additional charges or damages to the room. The temporary hold will usually be cleared within a few days of checking out.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What happens to your card limit when you use it to hold a room?

The amount of credit that you have available to use on your credit card account is reduced by any pending credit card charges like hotel room holds. Your available balance will be at this lowered level until the charge is finalized, which may take a few days after you check out. Make sure that you understand your available balance to limit the chances that your card is declined.

How long does a hotel hold your deposit?

Generally, most hotels will put a temporary hold on your credit card when you check in. This hold usually lasts for a few days after you check out, when it will usually disappear. If you see a hotel credit card hold on your statement longer than that, contact your credit card issuer to see if they can remove the hold.

How much do hotels hold on credit cards?

The amount that hotels hold on credit cards will vary by hotel. Usually the hold will be anywhere from $20 to $200, plus any outstanding balance owed on the room. This helps to protect the hotel over any extra charges or damages that might occur. If you’re not sure how much the hold will be for, you can ask the desk clerk when you check in for the policy at that specific hotel.


Photo credit: iStock/ferrantraite

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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Guide to Airline Credit Cards?

Guide to Airline Credit Cards

An airline credit card is a category of credit card that allows you to rack up airline miles, among other cardholder benefits. These cards are usually cobranded with a particular airline. You can reap the perks of an airline credit card through purchases made on your card.

Airline credit cards are designed with the frequent flyer in mind. However, no two cards are alike. They can vary widely in terms of perks and restrictions, which you’ll need to consider when deciding if an airline credit card is worth it.

Key Points

•   Airline credit cards typically partner with specific airlines, offering points or miles for purchases.

•   Benefits include travel perks like free checked bags, priority boarding, and lounge access.

•   When choosing a card, consider fees, sign-up bonuses, and rewards.

•   Premium cards offer enhanced benefits but may come with higher costs.

•   General travel cards can provide broader redemption options, suitable for diverse travel needs.

What Is an Airline Credit Card?

As mentioned, an airline credit card is a type of credit card designed for those who hop on planes frequently, such as avid travelers and those who fly a lot for work. Major network credit card networks and banks partner with airlines to offer cobranded airline credit cards.

They usually feature a rewards program, where you can earn points or credit card miles to redeem for flights, luggage fees, in-flight wifi, food and beverages, or upgrades to business or first class. Other perks might include reimbursement for canceled flights, insurance for lost baggage, and hotel room upgrades.

Recommended: How Do Credit Cards Work?

How Does an Airline Credit Card Work?

When you put purchases on your airline credit card, you’ll earn points or possibly miles. You can later use these points for travel-related perks, such as flights, hotel stays, and free upgrades. Beyond a rewards program, an airline credit card might also feature benefits like free upgrades to first class, invitations to airport lounges, and an annual travel credit.

To redeem your points, you usually can book directly through the card issuer’s portal. Sometimes, you can transfer your points to one of the card network’s hotel or airline partners.

Unlike private label credit cards, where you can only use the card at one specific store or group of stores, airline credit cards can be used anywhere the credit card network (such as Mastercard or Visa) is accepted.

Examples of Airline Credit Cards

Airline credit cards are a type of loyalty program for a particular type of airline, where you earn miles for making purchases with the card. However, there are several different kinds of airline credit cards:

•   General airline credit card: With a general airline credit card, you earn credit card points or miles for purchases, and you can redeem them for flights, upgrades, free wifi or in-flight food or beverage, and priority boarding or free checked bags. Some cards feature a sign-up promotion where you automatically get a certain number of miles or built-in travel perks.

•   Premium airline credit card: These have the upgraded version of airline card perks — think more points earned for each purchase, annual bonuses and travel credits, and access to exclusive airport lounges. As it goes, the greater the perks, the higher the annual fee. Premium airline credit cards tend to have higher annual fees than other types of airline credit cards. However, they generally aren’t quite as exclusive as, say, a black credit card.

•   Business airline credit card: This type of airline credit card is designed with the frequent business traveler in mind. Perks might include additional ways to earn higher points on business-related expenses, free upgrades to business class, a companion pass, and cards for you and your employees, which can help you earn miles more quickly.

Recommended: What Is an International Credit Card?

What to Consider Before Choosing an Airline Credit Card

The perks of an airline credit card are alluring. You’ll want to mull over these factors when shopping around for an airline credit card:

•   Fees: The more robust and attractive the perks, the higher the annual fee for a card likely is. That being said, there are a number of no annual fee credit cards in the airline credit card category that still offer perks.

•   Sign-up bonuses: Some cards will offer a sign-up bonus, such as a number of points for simply opening an account, or for spending a certain amount within a specified time frame.

•   Rewards: As you research cards, look at how you earn rewards as well as how many points you can earn for certain types of purchases. Also consider what types of rewards you’ll earn and if that’s a good fit for your spending. For instance, some people may prefer credit card miles vs. cash back.

Airline Credit Cards vs Travel Rewards Credit Cards

They might sound strikingly similar, and while airline and travel rewards credit cards both allow you to rack up credit card miles or points in return for rewards, an airline credit card is specific to an airline. In turn, you can only enjoy, say, free checked bags or flights with that specific airline.

Travel rewards cards, on the other hand, are broader in how you can redeem benefits earned. You typically use these more general rewards credit cards for any airline, hotels, and rental cars.

Both airline credit cards and travel rewards cards can come with added perks, such as credit card travel insurance. Additionally, both allow you to use them for any type of purchase. They also might feature no foreign transaction fees.

When to Consider a General Purpose Travel Credit Card

A general travel credit card could be a good idea if you travel enough to make the most of the offered travel-related perks and rewards. It can also be a stronger choice than an airline credit card if you aren’t loyal to any particular airline carrier or you don’t have a preference.

As usual, you’ll want to review the rewards program in addition to the perks, fees, rates, and restrictions on a card before making a decision.

Benefits of Airline Credit Cards

Unsure what the upsides are of an airline credit card? Here’s a look at the main benefits of having one:

•   Travel perks: If you hop on planes quite often, you can take advantage of an airline credit card’s rewards program. In turn, you might scoop up free flights, priority boarding, free checked bags, access to airport lounges, travel protection, and upgrades.

•   Discounts on the flight: Common in-flight discounts include money saved on wifi, meals and drinks, and on entertainment.

•   Sign-up bonuses: Some airline credit cards offer a generous sign-up bonus where you can snag points if you spend a certain amount within the first several months after opening an account. The exact terms will vary by card.

Airline Credit Card Cost

The cost of an airline credit card varies. Some have zero annual fees, while others can have an annual fee of several hundred dollars and upwards.

The annual percentage rate (APR) of an airline card also can vary. A particular credit card may advertise an APR range, though your rate will depend on your credit and financial situation.

Is an Airline Credit Card Right for You?

An airline credit card could be a good fit for you if you are a frequent flyer and love traveling on a particular airline. It’s important to carefully look over the perks, sign-up bonuses, and fees before moving forward with any particular airline credit card.

The Takeaway

An airline credit card could be a solid choice if you travel frequently and prefer to fly on one airline. Benefits can include travel perks, discounts, and sign-up bonuses, with rewards earned in the form of credit card points or miles. Before deciding if an airline credit card is a good idea, carefully research the perks and rewards and compare those against the fees, interest rates, and benefits of other credit cards, whether a travel card or a traditional card.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

🛈 While SoFi does not currently offer airline credit cards, we do offer other credit cards that may suit your needs.

FAQ

Is an airline credit card worth it?

An airline credit card could be worth it if you are a frequent flyer and like to travel on a particular airline. However, it might not be worth it if you won’t end up using the rewards often enough to justify any annual fees on the card.

What are the benefits of booking a flight with an airline credit card?

Perks of booking a flight with an airline credit card might include free checked bags, bonus offers on miles, priority boarding, and lounge access, among others. The perks vary depending on the card.

Do you lose airline miles if you cancel a credit card?

Typically not. Points or miles earned on an airline credit card usually will be transferred to the specific airline’s loyalty program account shortly after you cancel and close out your account.

Must airline credit card rewards be used all at once?

Usually, you can use your rewards points or miles at your leisure and discretion. You do not have to use them in one fell swoop. However, points on an airline credit card might expire after a period of inactivity.


Photo credit: iStock/Choreograph

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Protecting Yourself Financially When Disaster Strikes

As the catastrophic Los Angeles wildfires continue to burn, residents are grappling with a range of emotional, physical, and financial challenges. Whether it’s a wildfire, hurricane, flood, or other calamity, taking advantage of government resources and managing your finances effectively can be an important part of recovering and rebuilding. Here’s what you need to know to secure assistance from the Federal Emergency Management Agency (FEMA), how to protect your finances during and after a disaster, and where to turn for current and credible information.

Navigating FEMA Disaster Relief

FEMA can provide critical resources to individuals and businesses affected by federally declared disasters. These may include financial assistance for temporary housing, home repairs, and medical expenses as well as childcare and transportation – if they’re not already covered by insurance. Here are the key steps to kickstarting that process:

•   Confirm federal eligibility: The LA Wildfires have already been declared a federal disaster. You can learn more about this designation on FEMA’s website.

•   Register with FEMA: Apply online at disasterassistance.gov, via the FEMA app, or by calling 1-800-621-3362. You will need to provide details like your Social Security number, insurance information, address, and a description of damages.

•   Document your possessions: Take photos and videos of the damage, and keep receipts for any expenses incurred as a result of the disaster. Learn more about how to do this.

Note that you may also be eligible for a special low-interest disaster loan via the Small Business Administration – even if you don’t have a business. You can find more information about that here.

Managing Your Finances After a Disaster

Managing your finances can be especially difficult in the aftermath of a disaster, given all of the demands on you. First, prioritize essential expenses like housing, food, and medical needs. Once the basics are under control, here are some steps to help you regain your footing:

Communicate with Creditors

Inform lenders, credit card companies, and utility providers about your situation. You can request a payment deferral, reduced interest rate, and other accommodations. Here are the phone numbers to get support for SoFi financial products:

•   SoFi Customer Support: 855-456-7634

•   Home Loans: SoFi Mortgage Servicing at 855-622-3198

•   Student Loans: MOHELA at 855-456-7634

•   Personal Loans: SoFi Servicing at 855-456-7634

•   Credit Card: SoFi Servicing at 844-945-7634

File Insurance Claims Promptly

Contact your insurance provider to report damages, and provide detailed documentation to expedite claims processing. Here are tips to guide the documentation process.

Create a Recovery Budget

As best you can, inventory your anticipated expenses related to the disaster.

Seek Additional Resources

•   Nonprofits: Groups like the Red Cross and Salvation Army may offer financial aid and supplies.

•   State and local programs: Many states and municipalities may offer supplemental assistance.

•   Community support: If you’re considering a charitable donation, check out this piece by the LA Times which provides an overview of credible organizations. And you can always vet charities using tools like Charity Navigator or the Better Business Bureau.

Monitor Your Credit

Disasters may increase the risk of identity theft. Regularly check your credit report for inaccuracies or suspicious activity. SoFi offers free credit monitoring, which you can sign up for here.

Stay vigilant. Scammers often try to take advantage of natural disasters, so be cautious of unsolicited offers or requests for personal information.

Where To Go For More Information

The LA Times has published a number of informative articles addressing frequently asked questions:

•   I Was Forced to Evacuate My Home. Do I Still Need to Pay My Mortgage, Rent, Utility Bills?

•   Fire Victims Can Get Aid from the Feds. How to Apply For FEMA and Avoid Potential Scams

•   L.A. Wildfire Resource Guide: How to Stay Safe, What to Do and How to Help


Photo credit: iStock/CampPhoto

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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