LOWER HOTEL CREDIT CARD PROCESSING FOR MERCHANTS

Jan 18, 2016

“Profitability is coming from productivity, efficiency, management, austerity, and the way to manage the business.” – Carlos Slim

Merchants in the hotel industry should take control of their credit card processing performance and find the right merchant account provider that would give them the best available terms of service.

Hotel Card Payment Authorization

Through authorization, card issuers approve or decline transactions.

  1. Requesting An Authorization

US hotels are required to get an authorization for their transactions. Non-US hotels are required to authorize their transactions if:

  • There is a suspicious transaction
  • The total amount of a transaction exceeds the floor limit
  • No card imprint is available for a handwritten sales draft
  • The card isn’t signed
  • The card has expired
  1. When A Guest Decides To Stay Longer

When a guest extends his/her stay, request an incremental authorization for the additional transaction amount. Confirm with your guest the length of his/her extended stay, and take the steps required for a standard authorization for the additional amount.

In case the request is declined, contact your customer and ask for another payment form. If the extended stay is beyond 2 weeks, get an authorization for a new transaction.

  1. Authorization Types:

–  Estimated – The guest’s total charges should be estimated for check-in.

–  Final Authorization And The 15% Rule – Authorization is required for checkout if:

  • No previous estimated authorization is available, and the actual transaction amount exceeds the hotel’s floor limit.
  • If an estimated authorization amount is available, follow the 15% rule by adding 15% to the authorization amount estimated previously and comparing the total to the actual, final and the transaction amount.
  1. Authorization Reversals

With the final transaction amount lower than the authorization amount estimated initially, process an authorization reversal.

  1. Completing An Authorization Request
  • Swipe, wave or insert the card into a chip card reader at the POS or get a card imprint
  • Make an authorization approval request for the estimated charges
  • Follow the authorization response

Managing Amended And Delayed Charges

The hotel industry is recognized as high risk. Merchants doing a hotel business should look for a highly reputable payment processor in the field to get a safe and reliable merchant account for their business needs. With EMB, especially small hotel owners can enjoy a secure hotel credit card processing to keep up with the demands of the modern hotel industry.

One of the key issues related to hotel management has to do with amended and delayed charges. In case additional charges are required after checkout, amend your customer’s bill if he/she’s agreed to take responsibility for the charges in the service contract.

Bill for amended and delayed charges:

  • After checkout, prepare a separate sales receipt for the delayed charges and add “signature on file” to the signature line
  • Get an authorization approval
  • Keep the transaction receipt
  • Attach a copy to your customer’s record
  • Mail/email the additional charge information to the cardholder

Let us help you get a hotel merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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