I just returned from my holidays in Spain and Portugal, stayed at Hostal Tijcal. The credit card company normally charges for administrative fee to the establishments that's why paying by cash, you get a discount.

The location is fantastic, even though it's next to Plaza Mayor. Not once did I feel unsafe around the hostal area. It's a couple of minutes walk down to the Sol metro. The only thing is that you have to be really careful about the pickpockets.

I saw a gang of them pickpocketing a Japanese guy. Another guy in our group (we were on the Walks of Spain tour), grabbed the money from the pickpocketter and he grabbed it back. The guy looked mean and nasty and another member of the gang stood by threateningly. If it weren't for the fact that there was a bunch of us and we were outside a bar, I think we would have gotten into serious trouble. We were told later that these people were known to have stabbed the ones that resist.

You just have to be really aware of your surroundings, be smart, don't leave your money where it's easy to pick. If you feel like a group of people are closing in on you, move away as quickly as possible.

In short, just be street smart and you'll be fine.