So... what was the scam here?
* It might be a way to save the hotel the cc processing costs (or even just time, if outside a 1st world country). This easily adds $10 to my bill for having to use my EC card (EC := debit card used a lot in Europe) in a foreign country at a foreign bank's ATM.
* That deposit could just be the daily limit for your card in that country. You'll unfortunately have to eat at the hotel because they are the only ones who graciously let you pay the day after.
* It might be a scam to get you seek the next ATM where someone is waiting for you and you start the millionaires' tour: Use all cards at gun- or knife point until their limits are reached.
Am sure this is what a bar in the Canaries tried with me, a 4 level bar/restaurant with about 10 rooms and their story was "this card machine is broken" "this one's out of battery" etc, then "there's an ATM just over there, I'll take you there...".
If it looks like a duck and quacks like a duck, don't be surprised if they steal your bread.
I booked and prepaid the hotel with my Visa debit card. When I arrived they wanted a deposit for £150, which they would only accept using a Mastercard. I have never encountered any business that only accepts Visa OR Mastercard.
I don't have a Mastercard, so I was told I had to pay the deposit in cash. That was just really odd.
> This really set my alarm bells ringing
I interpreted this as "red flag", or "something fishy going on".
Me neither ... except Costco, which - in Canada at least - only accepts Mastercard.
The VICE piece is here:
How to Become TripAdvisor’s #1 Fake Restaurant
The Shed at Dulwich was the number one rated restaurant in London, with foodies, celebrities and bloggers trying to get a table. The main obstacle for them, however, was that it didn't exist. Over the course of 8 months VICE's Oobah Butler used an assault of fake reviews to get his 'restaurant' to the hallowed top spot on TripAdvisor.