Hotel credit card processing involves securely capturing and managing guest payments, often through a combination of point-of-sale (POS) systems, online payment gateways, and property management systems (PMS). Hotels typically require a credit card to guarantee reservations and authorize incidental charges during a guest's stay. This often involves extended authorizations, where a hold is placed on the card for the estimated cost of the stay and any potential incidentals, with the final charge processed upon check-out.
Here's a more detailed breakdown:
1. Traditional Credit Card Terminals: These are physical devices where guests can swipe, insert, or tap their cards to make payments.
2. Integrated Property Management Systems (PMS): These systems streamline hotel operations, including payment processing, by integrating with POS systems and other tools.
3. Online Payment Gateways: These are used for online bookings and payments, and they connect the hotel's website to payment processors.
4. Point of Sale (POS) Systems: These systems manage sales and payments throughout the hotel, including at the front desk, restaurant, and other outlets.
5. Virtual Credit Cards (VCCs): These are used by online travel agencies (OTAs) to pay hotels, and hotels need systems that can process these payments.
6. Extended Authorizations: Hotels often need the ability to authorize a card for the full cost of the stay, including incidentals, and then settle the final amount upon check-out.
7. Secure Payment Processing: Hotels need to ensure the security of guest payment information and comply with PCI DSS standards.
8. Payment Options: Hotels may offer a variety of payment options, including credit and debit cards, mobile wallets (Apple Pay, Google Pay), and other methods.
9. Payment Processing Fees: Hotels may incur higher credit card processing fees due to factors such as the higher average transaction value and the prevalence of card-not-present transactions.
10. Payment Processing Software: Many specialized software solutions are available to help hotels manage payments.
By implementing robust payment processing systems and best practices, hotels can ensure a smooth and secure payment experience for their guests while also protecting their own business operations.
An all-in-one POS system with integrated payment processing is easy and convenient. You only need to deal with one provider for all your needs.
If you choose an all-in-one provider, you’ll likely be able to get the best rate on your payment processing fees.
Payments through an all-in-one system are often more secure. Instead of your cashier having to manually enter your shoppers’ totals into the PIN pad, your POS system will automatically charge your customers’ cards the correct amount.
An all-in-one POS system with integrated payment processing speeds up the checkout process by eliminating time-consuming manual processes, allowing you to serve more customers in less time.
The main disadvantage of this option is that you have less flexibility to switch providers in the future. Since your POS system and payment processing are all rolled into one convenient service, it won’t be as easy to find a new POS or payment processing provider.