Why checks instead of credit cards for deposit

Credit cards charge a fee of up to 2% to the business receiving the payment. 2% is 2%.

Many small family run places just don't use credit cards (see fees discussed in previous post). You may check at your bank about getting an international money order if you don't want to send a personal check. I did that for a reservation in Wales in 2002 and it worked great. Just be sure and have them e-mail you that they have received your deposit so you have proof you have paid it and that your place is being held.

It's also easier to keep a check off the government's radar, meaning it's easier not to pay taxes on it. Tax avoidance is practically the national sport in Italy. This is the same reason many places ask for cash (plus avoiding the credit card fee).

Pat, In the fall of 2007 we went to La Crociona in Montalcino. We also were asked for a check for a deposit. Because our bank deals in Canadian funds, we sent a Money order (with the payee part not filled in)which they kept for us and returned it to us when we checked in and paid them in Euros. Banking is very complicated and expensive and in some cases a good distance away and they really appreciated us paying them in Euros. I also really recommend La Crociona. Our dealings with them were very prompt via email and our MO arrived in one week.
They treated us very well while we were there and the accomodations were very comfortable and good value.

Wherever you stay, ask whether there is a discount for cash. The credit card charges take a bite from the hotel's profits. Even at places that accepted credit cards we enjoyed nice discounts for using cash. With ATMS all over it was no problem, just know your daly limits and plan accordingly; we didn't want to carry around a lot of cash and ATM'd prior to checking out.

I have reserved an apartment rental in Paris. I paid the deposit by PayPal, which is attached to my credit card. Another rental requested a credit card number for the reservation and requires the full amount of the rental in cash upon arrival, with a check for $500 as a damage deposit to be held (not cashed) until I leave. I probably would not send a personal check in advance, even if they say they will not cash it.

There are two possible reasons:

First it costs a lot to take credit cards so many small businesses don't do it.

Second there is no recourse when you send a check like you have with a credit card purchase. It could be they have had too many last-minute cancelations and don't want to deal with the charge-backs.

I prefer to think the first is the reason unless I have some reason to suspect the second.