If I go on booking.com and book a hotel in Spain or Germany and it has "free cancellation" as one of the booking terms and conditions, then that is all. No charge up front.
Both the hotels I have booked in Florida were also "free cancellation" up to the day before arrival, but both have charged my credit card for a night's stay already. Refundable. But that's not the point. Both have had my money in their bank account for months when truly the product or service I have bought isn't used until late May.
Hopefully I won't need to cancel either of them and never have to see whether the money comes back!
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